History[ edit ] Social media has a history dating back to the s. Usenet , which arrived in , was actually beat by a precursor of the electronic bulletin board system BBS known as Community Memory in True electronic bulletin board systems arrived with the Computer Bulletin Board System in Chicago, which first came online on 16 February Multiple modems, followed by specialized telco hardware allowed multiple to many users online simultaneously.
Between the middle s to the middle s, BBSes numbered in the tens of thousands in North America alone.
When the Internet arrived in the mids, message forums migrated online, becoming Internet forums , primarily due to cheaper per-person access as well as the ability to handle far more people simultaneously than telco modem banks.
However, the first social networks were short-lived because their users lost interest. The Social Network Revolution has led to the rise of the networking sites. Research  shows that the audience spends 22 percent of their time on social networking sites, thus proving how popular social media platforms have become. This increase is because of the smartphones that are now in the daily lives of most humans.
This is an analogy to the concept of a viral infectious disease in biology , some of which can spread rapidly from an infected person to another person. In a social media context, content or websites that are "viral" or which "go viral" are those with a greater likelihood that users will reshare content posted by another user to their social network, leading to further sharing.
In some cases, posts containing controversial content e. Many social media sites provide specific functionality to help users reshare content — for example, Twitter 's retweet button, Pinterest 's pin function, Facebook 's share option or Tumblr 's reblog function. Businesses have a particular interest in viral marketing tactics because such a campaign can achieve widespread advertising coverage particularly if the "viral" reposting itself makes the news for a fraction of the cost of a traditional marketing campaign e.
Nonprofit organizations and activists may have similar interests in posting content online with the hopes that it goes viral. Mobile users[ edit ] Young people have high usage rates of smartphones, which enables this demographic to be significant users of social media websites. Mobile social media refers to the use of social media on mobile devices such as smartphones and tablet computers.
This is a group of mobile marketing applications that allow the creation, exchange, and circulation of user-generated content. According to Andreas Kaplan , mobile social media applications can be differentiated among four types: Exchange of messages with relevance mostly for one specific location at one specific point in time e.
Facebook Places What's app; Foursquare Space-locators only location sensitive: Exchange of messages, with relevance for one specific location, which is tagged to a certain place and read later by others e. Yelp ; Qype , Tumblr , Fishbrain Quick-timers only time sensitive: Transfer of traditional social media applications to mobile devices to increase immediacy e. Transfer of traditional social media applications to mobile devices e.
Mobile social media applications offer data about offline consumer movements at a level of detail heretofore limited to online companies. Any firm can know the exact time at which a customer entered one of its outlets, as well as know the social media comments made during the visit. Mobile social media communication takes two forms: Although customers have had to use printed coupons in the past, mobile social media allows companies to tailor promotions to specific users at specific times.
For example, when launching its California-Cancun service, Virgin America offered users who checked in through Loopt at one of three designated Border trucks in San Francisco and Los Angeles between 11 a. Relationship development and loyalty programs: In order to increase long-term relationships with customers, companies can develop loyalty programs that allow customers who check-in via social media regularly at a location to earn discounts or perks.
Social media sites are increasingly implementing marketing-friendly strategies, creating platforms that are mutually beneficial for users, businesses, and the networks themselves in the popularity and accessibility of e-commerce, or online purchases.
The user who posts her or his comments about a company's product or service benefits because they are able to share their views with their online friends and acquaintances. The company benefits because it obtains insight positive or negative about how their product or service is viewed by consumers.
Mobile social media applications such as Amazon. A common thread running through all definitions of social media is a blending of technology and social interaction for the co-creation of value for the business or organization that is using it.
People obtain valuable information, education, news, and other data from electronic and print media. Social media are distinct from industrial or traditional media such as newspapers, magazines, television, and film as they are comparatively inexpensive and accessible at least once a person has already acquired Internet access and a computer.
They enable anyone even private individuals to publish or access information. Industrial media generally require significant resources to publish information as in most cases the articles go through many revisions before being published.
This process adds to the cost and the resulting market price. Originally social media was only used by individuals but now it is used by businesses, charities and also in government and politics.
One characteristic shared by both social and industrial media is the capability to reach small or large audiences; for example, either a blog post or a television show may reach no people or millions of people. In industrial traditional publishing—mediated by a publisher—the typical range of quality is substantially narrower skewing to the high quality side than in niche, unmediated markets like user-generated social media posts.
The main challenge posed by the content in social media sites is the fact that the distribution of quality has high variance: Both industrial and social media technologies provide scale and are capable of reaching a global audience. Industrial media, however, typically use a centralized framework for organization, production, and dissemination, whereas social media are by their very nature more decentralized, less hierarchical, and distinguished by multiple points of production and utility.
The number of times users access a type of media per day. Heavy social media users, such as young people, check their social media account numerous times throughout the day.
The means of production for industrial media are typically government or corporate privately owned ; social media tools are generally available to the public at little or no cost, or they are supported by advertising revenue. While social media tools are available to anyone with access to Internet and a computer or mobile device, due to the digital divide , the poorest segment of the population lacks access to the Internet and computer.
Low-income people may have more access to traditional media TV, radio, etc. Moreover, in many regions, TV or radio owners can tune into free over the air programming; computer or mobile device owners need Internet access to go to social media sites.
Industrial media production typically requires specialized skills and training. For example, in the s, to record a pop song, an aspiring singer would have to rent time in an expensive professional recording studio and hire an audio engineer. Conversely, most social media activities, such as posting a video of oneself singing a song require only modest reinterpretation of existing skills assuming a person understands Web 2.
The time lag between communications produced by industrial media can be long days, weeks, or even months, by the time the content has been reviewed by various editors and fact checkers compared to social media which can be capable of virtually instantaneous responses. The immediacy of social media can be seen as a strength, in that it enables regular people to instantly communicate their opinions and information.
At the same time, the immediacy of social media can also be seen as a weakness, as the lack of fact checking and editorial "gatekeepers" facilitates the circulation of hoaxes and fake news. Industrial media, once created, cannot be altered e. Community media constitute a hybrid of industrial and social media. Though community-owned, some community radio, TV, and newspapers are run by professionals and some by amateurs. They use both social and industrial media frameworks. Social media has also been recognized for the way they have changed how public relations professionals conduct their jobs.
Doc Searls and David Wagner state that the " They understand that there aren't censors, they're the company's best conversationalists. Business performance[ edit ] Social media has a strong influence on business activities and business performance.
Revealed preferences represent the extent to which social media exposes customers' likings e. Social marketing represents the extent to which social-marketing resources e. Influence on consumer decisions With the ever-increasing technological development of social media, this has affected consumers' decision to buy the product or service provided by companies.
On the other hand, social media has become an important factor in increasing the sales of brands, whether large or small, since the beginning of the Internet revolution. There is much research to prove this, based on the actions taken by the consumer through There will be many reports at the beginning confirming the degree to which social media has become effective in marketing companies and the importance of focusing on them.
Companies and other organizations can use these tools and approaches to improve their business capacity and performance. One important aspect of the CRM approach is the systems of CRM that compile data from a range of different communication channels, including a company's website, telephone, email, live chat, marketing materials, and social media. Through the CRM approach and the systems used to facilitate CRM, businesses learn more about their target audiences and how to best cater to their needs.
However, adopting the CRM approach may also occasionally lead to favoritism within an audience of consumers, resulting in dissatisfaction among customers and defeating the purpose of CRM.
Innovation can be defined[ by whom? This is accomplished through more-effective products, processes, services, technologies, or business models that are readily available[ citation needed ] to markets, governments, and society. The term "innovation" can be defined as something original and more effective and, as a consequence, new, that "breaks into" the market or society.
Innovation is often manifested[ by whom? Innovation is generally considered[ by whom? In industrial economics , innovations are created and found empirically from services to meet growing consumer demand. However, for workers who are not familiar with social media, formal or informal training may be needed. Brand management and engagement is done differently on social media platforms than over traditional advertising formats such as TV and radio ads.
To give just one example, with traditional ads, customers cannot respond to the ad. However, if an organization makes a major gaffe or politically incorrect statement on social media, customers and other regular citizens can immediately post comments about the ad. Knowledge management could take place in traditional small businesses such as coffeehouses and ice cream parlours just by using the owner-proprietor's own memory of his key customers, their preferences, and their client-service expectations.
However, with the shift to national or even multinational e-commerce businesses which operate online, companies are generating far more data on transactions for a single person or even a team to grasp just in their memory. As such, era global e-commerce firms typically use a range of digital tools to track, monitor and analyze the huge streams of data their businesses are generating, a process called " data mining ". Monitoring, tracking and analysis[ edit ] Companies are increasingly using social media monitoring tools to monitor, track, and analyze online conversations on the Web about their brand or products or about related topics of interest.
This can be useful in public relations management and advertising campaign tracking, allowing the companies to measure return on investment for their social media ad spending, competitor-auditing, and for public engagement. Tools range from free, basic applications to subscription-based, more in-depth tools. Social media tracking also enables companies to respond quickly to online posts that criticize their product or service.
By responding quickly to critical online posts, and helping the user to resolve the concerns, this helps the company to lessen the negative effects that online complaints can have about company product or service sales.
In the US, for example, if a customer criticizes a major hotel chain's cleanliness or service standards on a social media website, a company representative will usually quickly be alerted to this critical post, so that the company representative can go online and express concern for the sub-par service and offer the complaining person a coupon or discount on their next purchase, plus a promise to forward their concerns to the hotel manager so that the problem will not be repeated.
This rapid response helps to show that the company cares about its customers.