The Benefits of Social Media in the Current Economy

In the roaring twenties of the twenty-first-century usage of social media has become an important activity of our everyday life. Social platforms are not only a place for cute family albums and keeping the connection with your friends, but the powerful business instruments.

The impact of it on the world economy is enormous. It has changed the game for small businesses and established brands as well. New industries step in the light. We want to show you what are the main benefits that social networks provide to the modern world economy.

THE IMPACT ON THE INDUSTRY OF GAMING AND CYBERSPORTS

In the twenty-first century, gaming has become something bigger than just a hobby for kids. This industry evolved very fast and nowadays it has a solid community gathered around it. The development of social media also affected the growth of geek culture. With the rise of interest in online gaming, cybersport was born.

Top-level gamers and their teams, game streamers,  industry enthusiasts, creators, and reviewers are as popular, as lifestyle bloggers. And this fact is noticed by brands and marketers.

Why does social media matter here?

Gamers and industry fans represent a new target audience for big brands. This community is one of the most active online, so the use of social media to reach them was vital.

Big game-developing companies like Blizzard Entertainment, Electronic Arts, Valve Corporation or Capcom, also rely on social platforms in their marketing strategies very much, and for a good reason. They help to nurture the strong kinship of fans and create a buzz around the product given. That leads to good sales of that product.

How do you do that?

Primarily, the gaming community used YouTube and Twitter as their main social platforms. But since the launch of Twitch service in 2011, the major part of the community eventually migrated there.

Basically the marketing strategy for Twitch is similar to one for YouTube, but the main difference between them is that Twitch is a live-streaming service, while YouTube is oriented more on uploaded video content.

To get a good revenue on Twitch, gaining as many constant followers as possible is vital. Here are effective methods to do that:

  • Constant activity on your account
  • Collaboration with influencers
  • A special website, where you can buy Twitch followers
  • Cross-platform promotion

NEW COURSE FOR SALES

The term social commerce stands for the process of sale and purchase within the social media platform. It evolved from e-commerce because people tend to spend more time online. 

According to Instagram statistics, 60% of users discover new products while lurking through their feed. Thus, it seems natural to implement the possibility to buy products without any redirects. Social commerce makes a purchase journey less complex, and that is a big benefit for sellers, and buyers too.

The secret of such efficiency is simple. Making the process of buying easier lowers the percent of confusion and abandonment. Yeah, people are lazy and they don’t like hesitating.

So I can buy anything I want directly from a brand’s Instagram page?

In fact, you can. By 2020, massive steps were made towards the realization of such functions, like the “Buy now” button and product catalogs on Instagram. For new generations, TikTok, Snapchat, and YouTube step in along with Instagram, while Facebook is staying behind.

BRANDS AND SOCIAL NETWORKS

The main benefit for brands, big and small – is a serious economy on advertising. Promotion via SMM is way cheaper than traditional ads campaigns. Radio, TV, and prints are expensive and need more time for showing results. SMM is affordable for any budget, sometimes even without one.

Secondly, the world is changing fast, and the generation of Millenials, with eyes locked in their smartphones, replaces the one before, that consumes traditional methods of sharing information like newspapers, television, radio, etc. Internet access technologies made a giant leap (say hello to 5G) and that increases the time that people spend surfing on the Internet.

How it changed the brands

The whole concept of the relationship between a brand and customer altered. Nowadays people are interested not only in products of a certain brand. They want to know what is the brand’s philanthropic opinions and what values it has. Brands that are using social networks create a public image that is closer to customers. For businesses, there are also new opportunities for pushing their sales. They receive effective tools and possibilities:

  • An accurate definition of their target audience
  • Social listening – to gather and analyze information about the needs and wishes of the customer, without big efforts
  • Faster reaction to critical situations and improved customer support
  • Easy way to watch on competing business
  • Creating a dynamic public image

THE CONCLUSION

In recent years we are witnessing a big economic shift. Social media is one of the main tools for that. The global digitalization of business started about 30 years ago, and no one could predict that it will evolve into something as big and meaningful. But it did and now all we can do is adapt to the new conditions of existence.

Social networks make a huge impact on many spheres of our life, and for world economics as well. Success in 2020 lies not in the coolest site, but in the work of the SMM  team, which creates and controls the public image of the brand on the Internet. With their endless possibilities for communication and promotion, social platforms create a new flow for the worldwide society.


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