As most of us are aware, social media has a huge influence on our society today. For these reasons, it has become important to build a Millennial and Generation Z-driven brand to attract the newest generations.
The use of social media has become so widespread that it has changed the relationship between brands and consumers. In the beginning, social media was a way for companies to market to consumers for free. Traditional marketing tactics relied on the T.V. or print advertisements, or even putting an advertising message on the radio. These tactics are not as profitable since most of them involve spending money.
Most people believe you need money to start a business which does not incite them to start. Nowadays, we have many more tools to use to our advantage. Initially, the use of social media in marketing put into question Sol Luckman’s quote “It takes money to make money.” On platforms such as YouTube, millions of videos exist with the possibility of finding all the information we need to possibly succeed in today’s market. More businesses are being allowed on the market due to their ability to reach more people quickly and easily. With social media, you can create your brand image whilst simultaneously connecting with potential future customers. It is easier to keep up to date with the newest trends and to be able to adapt to the customer’s preferences.
An example of a company that took advantage of social media is Nando’s when it opened its first restaurant. They offered the “peri-peri discount offer,” and used Facebook to reach out to its customers by having them tag six friends, and the group would get a 25% discount. In this case, many groups visited Nando’s and the business has become successful.
Individuals soon found a way to capitalize in this arena, and the rise of influencers began. Influencers, who range from big-name celebrities to the average Joe that became popular through the internet, now charge companies hefty fees to post about their products. These days, star influencers can earn $100,000 or more for a single post on Instagram.
However, consumers are catching on, and this method of advertisement is beginning to be questioned by viewers who are suspicious about whether these internet stars actually use the product they are posting about. Additionally, influencers can now purchase followers, inflating their audience size. Companies are beginning to realize they have no real metrics to measure the impact of the massive sums they are shelling out advertising on social media.
Social media has certainly offered a novel model of reaching customers. However, it may be less promising than initially anticipated.
