Recently I’ve been fascinated by the impact social media has had on the economy. The “Digital Gold Rush” refers to the impact social media had on businesses, and specifically the economy, when it was first introduced to the world of online marketing. Not only has social media created more jobs, but it has allowed businesses to reach a global audience within seconds.
A new market, a new global network, has given businesses the opportunity to service people beyond their local borders. It has given young, inexperienced businesses the opportunity to serve a big audience without having to build a retail presence first (unlike businesses in the past). Social media has become the most powerful advertising resource, allowing different brands to effectively target specific audiences. Approximately 4 billion people use social media, and on average, each person spends about 9 hours a day on their preferred social media platforms. Social media advertising, unlike traditional advertising through newspapers and television, is affordable and mostly free for many businesses. Social media has completely restructured the online market and has grown the international network immensely.
Unfortunately, in more recent years, social media marketing platforms have been accused of violating buyers’ privacy, such as tracking shopping on different apps and using peoples’ cameras and microphones on their devices. Information shared online, even consumers’ personal information, can be shared, and leaked between businesses and third party online users. Once leaked, it is hard to retain your personal information. Online feedback platforms have also made it harder for many businesses to regain their presence in the online market again once they are reported. This damage results in a forever scar on the name of the business, sometimes resulting in the brand going out of business completely.
As we discussed in our class, the availability of data has allowed us to access a bigger market and has given us options as far a price is concerned, but during my research on the impact of social media on the economy, it also has negative side effects. We voluntarily share our name, email, and other personal information with businesses who could and do specifically target our interests with personalized ads after tracking our search and shopping history. In my own family, I’ve noticed that some people are more wary about who and how they buy their products from, while others do not care who and where they buy products from. It depends on the company (if its national or international), and if its from a local or online market.
I think it is so crazy how many people can form a career on purely social media. Being an influencer has become a trend. The job is definitely attractive since you are essentially your own boss, and any person can become wealthy through it with the right factors. But it is interesting since the job does not really entail much besides advertising of some sort. I love how you touched upon the different sides of social media, including its downsides of less privacy. The space has definitely changed the market in so many ways. Good job!