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How Does Social Media Influence Companies - Research Paper Example

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The number of internet users and the projected increase of the online community have necessitated companies to harness the power of social media. This paper analyzes the different ways in which social media influence companies…
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How Does Social Media Influence Companies
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How Does Social Media Influence Companies

Download file to see previous pages... The emergence and ascendancy of social media have been awe-inspiring. Social media has become a very powerful communication tool and has revolutionized the way in which people interact and connect with each other. The use of social media is not restricted to individuals alone. Companies have recognized the importance of this media and have jumped onto the bandwagon. It is hard to find a company competing in the present day cut-throat environment and not deploying social media in its communication strategy. Social media is currently being used by companies to advertise their products, communicate internally, engage customers, listen to them and capitalize by generating a positive word-of-mouth. The advertisement spends on social media are expected to continue their northward trend. Globally, companies are expected to spend $23.6 billion on social media advertising this year. By 2017, this expenditure is expected to soar to $35.98 billion. Estimates also reveal that by 2017, advertisement on social media will represent 16 percent of the total advertisement expenditure incurred by companies on different types of digital media (Cohen, 2015). The data clearly establishes that social media has attracted a considerable amount of advertisement expenditure which was earlier incurred by companies on traditional media like television, print, and radio.  While there are various social networking sites, Facebook has emerged as the biggest beneficiary when it comes to advertising on social media. ...Download file to see next pagesRead More
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