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Diminishing Returns - Essay Example

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This write-up deals with the analysis of an article based on the law of diminishing returns. The analysis is done through the suitable integration of the concepts. The article chosen for the analysis is “Law Of Diminishing Returns Hits Social Media Companies”…
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Diminishing Returns
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Diminishing Returns

Download file to see previous pages... This article is a write up about how the law of diminishing returns has affected the popularity and profitability of the social media. The write up focuses on the idea of applications and advertisements on the social media sites having been stretched too far. Facebook is undoubtedly the most popular social media website operating in the present world. Apart from Facebook, other common social media sites are Instagram, Tumblr, Twitter, SnapChat and Tinder. Facebook is widely used and is an active medium of advertisement by businesses. However, the number of users of Facebook seems to have reached a stagnation level. The overuse of applications and third party advertisements seems to have clouded the interests of the Facebook users. The law of diminishing returns can be applied to the stagnant user profiles of Facebook through the evaluation that the increase in the number of advertisements have led to a decrease in the interests of the avid users of Facebook. The law of diminishing returns is applicable for Facebook and other social media sites as well because the use of extensive applications have created the need for Facebook and other social media sites to make their active users become more interested to use the platforms of these sites (Gerber, 2014). The social media sites try to attract the attention of their users to different businesses through the advertisements in the sites. However, Facebook and other social media sites can be identified to have missed the consideration of the customer cognition levels. ...Download file to see next pagesRead More
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