WAY CORPORATION USE SOCIAL MEDIA
Since the rise of social media, many corporations in the world have been looking at different ways to monetize this platform. The main marketing strategies that companies use to monetize the platform have been mostly based around advertising and collecting data.
“Advertising is a huge way corporations to use social media”
For example, Samsung spend a lot of money on advertising on Youtube or Instagram because they would have access to a much larger audience of people to view their products. Compared to television who separate their audience in tv channels uncontrolling which people will see the advertising.
Another reason of companies are attracted to use social media is: how social media are efficient for selling products. If a consumer sees a product on a youtube ad, all they have to do is tap the link next to the ad, and immediately they are directed to the website to order the product. Compared to traditional media where the consumer would have to remember the name of the product and travel to a store to buy it; social media offers an efficient platform to sell products leading higher profit for corporations.
“Companies also use social media as a tool to collect data that other companies”
Certain corporations are also formed just for the purpose of collecting data from websites and selling it to other companies who could use that data to better access their demographic of the products they are trying to sell. Going back to how corporations use social media to increase their audience, an issue is formed when the audience is too large to advertise to the right demographic of people.
When corporations run an aggressive marketing campaign their goal is :
Generate the correct match between the customer and product
To know who likes what on the internet websites have “cookies” enabled that find you IP and collect data about what an individual has been searching and watching.
Sometimes, when this data is collected it is sold to a company that can use it to have their ads to appear on that person’s social media. For example, new corporations like “Dawex” have formed to collect data and sell it to corporations. Collecting data is a very valuable market for corporations because of the more direct advertising it leads to for companies.
To conclude, Social media is a useful tool for advertising, collecting data, and saving money. Corporations will continue using, as long as social media continues to grow at the same rate as it does now.