Is Social Media Helping Or Hurting The Economy

As a marketer, I have a love-hate relationship with social networks. On the one hand, you can’t deny the role they play in helping companies get found and spread ideas. However, I’m a businessperson at heart, and driving results and improved performance are constant priorities.

In 15 years, I have never witnessed such a powerful channel become so consistently misunderstood. Busy executives are often skeptical. Consultants are prolific in their expert advice. Business people want to see case studies and examples of results. There is even a raging debate over if and how you can measure the ROI of social media. There is no harm for the business people when you will comprar views instagram for business. The creation of a strong profile will provide the desire results to the business people. The views on the social media account will enhance the experience of the business people to increase the profits. 

After attending an seminar recently (for an industry that shall remain nameless) where the marketing track spent a significant amount of time discussing the value of flash mobs and the session leader revealed that her board approved a policy of one tweet per week, I began researching the gap between the volume of social media information online in business and marketing circles and the real impact that social networks have on businesses.

Let’s look at the following charts comparing the growth of two of the most popular US social networks with grow of the US economy.

Facebook User Growth Compared to US GDP Growth

Twitter Usage Growth Compared to US GDP Growth

Show Me The Money

If social networks have revolutionized the way we do business, why isn’t it having a greater impact on the economy? The following lays out some of the reasons and myths behind social business’ paradox.

Premises I Don’t Accept

Social Media Can’t Have an Impact on a Business’ Bottom Lines

Though social media is a tool just like a phone, the impact it can have on a businessis significant when you combine it with quality content and search engines.

Though social media is a tool just like a phone, the impact it can have on a businessis significant when you combine it with quality content and search engines. Not Enough Buyers Use Social Networks

According to eMarketer, almost 64% of the US population uses social networks.

According to eMarketer, almost 64% of the US population uses social networks. Efficiencies Can’t Be Gained on a Large Scale

Sharing information of value with prospects and customers has the same basic fundamentals whether you are a multi-billion dollar B2B corporation or a small independent retail store.

Plausible Reasons Social Networking Has Not Transformed the Economy

Markets Are Emotional and Don’t Understand the Nuance of Social Media

GDP is dependent on a lot more than company’s financials. Politics, consumer confidence, and other domestic and international factors contribute to this gauge. It is possible that these factors overwhelm the subtle relationship building that social networks foster.

GDP is dependent on a lot more than company’s financials. Politics, consumer confidence, and other domestic and international factors contribute to this gauge. It is possible that these factors overwhelm the subtle relationship building that social networks foster. Social Media Is a Tool and Can’t Generate Profit Alone

Businesses that believe that social media is a silver bullet to profit have many hard lessons to learn ahead of them. It takes products that solve the right problems for your market, helpful content, and understanding of search engines to use social media to drive a business.

Businesses that believe that social media is a silver bullet to profit have many hard lessons to learn ahead of them. It takes products that solve the right problems for your market, helpful content, and understanding of search engines to use social media to drive a business. Businesses Are Not Using Social Networks

A July 2011 survey from Regus reported that only 43% of businesses are using social media to win new customers, while a November report from Accenture indicated that a mere 8% of B2B companies use social media extensively.

A July 2011 survey from Regus reported that only 43% of businesses are using social media to win new customers, while a November report from Accenture indicated that a mere 8% of B2B companies use social media extensively. Businesses are Not Doing It Well

The reality is that, while adoption is increasing, many organizations are not using social media effectively. Consumer product businesses, brands, B2B companies, associations, and nonprofits are all still learning how to tie their social networking activity to their traditional KPIs.

The reality is that, while adoption is increasing, many organizations are not using social media effectively. Consumer product businesses, brands, B2B companies, associations, and nonprofits are all still learning how to tie their social networking activity to their traditional KPIs. We Are at the Beginning

The Regus survey referenced above, saw a 9% increase in the percentage of businesses using social media year over year. Despite years of adoption by the public and the emergence of concrete best practices for businesses, it could be that we are still only at the beginning of businesses using social media to impact their bottom lines.

I acknowledge that data regarding the impact of social media on businesses can be much more granular, but for the amount of attention that the technology and marketing world gives to social networking, has it really transformed the way that we do business? If so, when will it show us the money?

Why do you think the huge growth in social network usage in the United States has not had more of an impact on the economy as a whole? Leave your thoughts in the comments below.

Adrian
Adrian

Adrian O'Connor is a passionate business writing coach and a creative copywriter. He is out there to make Business classes more interesting for all the students out there.