The Economic Perspective of Social Media - Assignment Example

The paper "The Economic Perspective of Social Media" is a good example of an essay macro and microeconomics. The economic perspective of social media has been an issue of interest within the Wall Street Journal recently. With many analysts fearing for global inflation, they have been keen to weigh how business can be supplemented. In the opinion of many, social media has become a marketing avenue to help organizations to push their business into the international scope and increase their range of customers.

While many find that Social sites such as Facebook and Twitter have worked well in business optimization, there are those who feel that the organizations need to focus on different strategies through which they can tap social media for the benefit of the business.  The controversy on the use of social media for economic development within the companies is an issue that has been ignited by the analysis on the way people use social media. Statistics show that the greater percentage of social site users use this avenue to connect with family and friends and only less than 20% use these sites to follow trends and find product information (Elder 1).

Therefore, it is clear that social sites have not yet achieved significant benefit for the organization that uses them for marketing. Therefore, many companies are still in the fear that their connection with potential customers is still falling despite the proliferation of social media in the internet era. From this point of view, many authors are of the opinion that social media has been of little help to economic development since it has served as an avenue for people to meet rather than companies to meet customers.

In my own opinion, the reason why social sites have not optimally benefited companies is that the companies have yet to leverage this avenue for their marketing strategies. The companies have to find the right strategies to market their products on social media, which is a sensitive platform. While social media may be an avenue to roll out products into the market, a sensitive platform needs to be used effectively. The reason why social media has not yet benefited many companies is that the organizations have not yet specialized in its use.

The organization needs not only to advertise their products but also ways of using the feedback that they obtain from the customers. Filtering of information is crucial as social media provide people with the liberty to express both negative and positive opinions on the products. To use it appropriately, the organizational managers have to evaluate the economic impact of taking into account the opinions provided in social media. Therefore, I believe that the economic value of social media will come because of its optimized use.

In short, the controversy on the economic value of social media is an issue that can only be proven with time. While many feel that customers have not been able to connect efficiently with the producers, it is clear that social media use in business is a new concept that is still growing. Its economic value will be fully realized only after organizations and the public learn to use it more appropriately for business purpose.