Social Media in the Market Place

What is Social Media?

Many people associate social media with the apps on their smartphone or tablets. A social media is a computer-mediated that is designed to facilitate in the sharing and creating of content through virtual communities. For years now, social media has helped people connect with others over the Internet.

The History of Social Media

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The start of social media first began in 1997 with the first social media website called Six Degrees. Six Degrees was a social network service that allowed users to create profiles and friend other users. The website lasted from 1997 to 2000 and was founded by CEO Andrew Weinreich. The site had about 3,500,000 registered members. Six Degrees started a trend for social media networking sites and the internet moved into the era of blogging and instant messaging where it was followed by sites like Myspace and Facebook. By the year 2000, more and more people began to utilize online chatrooms to connect, make new friends, and date as around 100 million people had access to the internet. Before long, many other websites began providing social media services.

How Do Social Media Sites Make Money?

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The most common way for social media websites to make money is to allow companies to place advertisements on the sites. The internet currently has 4.2 billion users. Out of these users, there are 3 billion active social media users. In 2015, social media networks earned an estimated $8.3 billion from advertising. Because there are millions of social media users, many advertisers are willing to pay a great amount of money for an ad on a social media website in order to give their companies more exposure. According to a study, the average cost per click on a Facebook ad was about .28 cents and the cost per 1,000 impressions was $7.19.

Social media networks also make money by the monetization of user data. Social media networking sites accumulate a large amount of valuable data about its users. To make money off of this, it is made anonymous and sold to third parties. The information is likely to contain things like demographics, interests, and needs of the consumer.

The Future of Social Media

Social media has come a long way to play a major role in our everyday lives. However, the future of social media does not stop here. Beginning in 1997, social media has helped us connect with others all over the world and share and create content at real time. Social media has had a large impact on the marketplace by helping businesses advertise themselves. Over the years, this has allowed more and more businesses to grow at a very rapid pace by gaining more exposure to their companies. Social media networks have made money by allowing these businesses to place ads on their sites, offer premium accounts, monetize data, and having creative promotions. As newer and exciting technologies emerge, humans will have better ability to communicate with each other, continuing the growth of social media.

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