1077 Views | 5 minutes ago | Published On: August 06,2022 - Last Updated: February 22,2024
The importance of social media and its Impact on the global economy must be considered. Social media is no longer just a form of entertainment but has become a necessity for businesses and commerce worldwide. All large, small, and medium-sized companies now rely on their presence and continuous interaction with their customers on various social media platforms to market themselves and gain a larger market share.
The increasing significance of social media lies in the vast user base and the duration of their usage of social media platforms during the day. The surge in social media has resulted in an increase in the number of users on the platforms and in the duration of users' usage. Users now rely primarily on social media to manage all aspects of their daily lives.
The live picture of the Impact of social media on economic events lies in the ability of these companies to attract their customers and strengthen their relationship with them through professional marketing strategies and interactive advertising campaigns on social media sites that are compatible and integrated with events in the real world. Global events and public opinions spread within moments on social media, which works to maximize and accelerate the Impact on the value of stocks of large commercial entities if the events and ideas are related to those companies. This is one of the most important effects of social media on the global economy. We all know what happened recently to the share price of Coca-Cola when a video of Portuguese football player Cristiano Ronaldo spread like wildfire on social media.
The Portuguese star entered the press conference during the Euro 2020 press conference just before the match against Hungary. It removed a Coca-Cola bottle and replaced it with water to urge everyone to drink water instead of Coca-Cola. This action led to a decrease in the price of Coca-Cola shares from $56.10 to $55.22.
The video of Ronaldo asking people to drink water instead of Coca-Cola spread quickly on various social media platforms. As soon as it happened, even people on social media began sharing funny designs and videos and mocking Coca-Cola and other soft drink companies. Now Coca-Cola had to pay a high price for this action, and they lost $4 billion on that day in just 4 hours.
After this, the company responded to Ronaldo's action wisely, and the company appeared very positive in its statement regarding Ronaldo's move, saying that everyone has the right to choose their beverage because people have different tastes. Despite being the official sponsor of Euro 2020, the company did not have a problem with Ronaldo's stance on the Coca-Cola bottle.
Coca-Cola said in a statement, "Players are offered water, alongside Coca-Cola and Coca-Cola Zero Sugar, at press conferences."
The Impact of social media on the global economy extends beyond the interests of large companies and governments to include the individual interests of people. One of the most significant effects of social media is the emergence of new and critical functional entities that everyone seeks, such as social media platform managers, marketers, moderators, ad designers, and video designers.
In addition, social media has numerous other direct and indirect effects on the economy. One of the most important images of the Impact of social media on the global economy is:
Before the emergence of social media platforms, marketing relied on advertising campaigns in the most-watched television channels, the best-selling newspapers, and magazines, as well as traditional advertising methods such as road and street signs. The high costs of those methods and the difficulty and complexity of advertising agencies responsible for publishing those campaigns are worth noting.
After the spread of the internet and social media platforms, social media platforms have become the most widely used communities worldwide. They are used daily by billions of users for long periods, estimated at an average of 9 hours of daily use per individual. This has led to a shift in the marketing trend of the entire world toward social media platforms. The most important motivators for this shift were the low costs of social media campaigns, planning, market research tools, measuring campaign results, and analysis.
Social media platforms have spread health awareness worldwide by sharing health information, blog posts, and health research by accredited organizations and doctors. Everyone has noticed the part of social media healthcare during the COVID-19 pandemic, where the World Health Organization and other international and local health organizations have published awareness posts, blogs, and videos to urge individuals to comply with preventive measures.
The increasing interaction with social media users' health information and awareness posts has led to a massive race by leading pharmaceutical companies to compete in producing an effective vaccine that reduces the risk of COVID-19. This trend has led to a lot of money being invested by businesses and governments in creating an effective vaccine. As we mentioned earlier, the credit goes to social media.
Social media platforms heavily rely on advertising for revenue, so they have designed professional advertising dashboards allowing individuals to create ads within their available budget. It is worth noting that the results of advertisements on social media platforms depend on budgets and multiple factors, making competition fair among companies that offer similar services and products.
The competition fairness provided by social media platforms has helped new businesses to grow. It is worth mentioning that social media platforms offer companies and businesses real opportunities to target their customers, which is the most distinctive element in marketing products on social media platforms. Therefore, studying the market and professionally planning marketing campaigns can make targeting on social media platforms more accurate without the need for huge costs.