Is Social Media Worth the Cost?

While social media became a hit with brands because of free publicity, advertisers are beginning to notice that nothing comes for free. To get their message out to large audiences, brands are having to put more money into social media advertising, as stated in an article.

Therefore, is social media worth the high costs?

My answer is yes. Currently, only 10% of advertising from companies goes into social media platforms. This percentage is staggering to me, considering the popularity of social media is increasing more and more every day.

Take the history of television, for example. When the television set was first introduced, people were unsure how to use it. Overtime, companies began to add commercials into regular programming to promote their brand. Today, a single 30-second SuperBowl advertisement can cost companies millions of dollars.

The same is true for social media. As time goes on, we as a society will learn how to use it in better, faster, and more efficient ways. As this trend continues, companies need to be able to dish out high costs to keep up with the times.

However, this trend also has it's exceptions. Companies need to look at their target market and the relationship that market has with social media. For companies like Apple or H&M, their products are very popular among young adults. Young adults, in return, tend to be very involved with social media. These brands need to be ready to shift their marketing toward social media. In contrast, brands like AARP do not need to invest in social media marketing for many more years, until their audience moves toward social media as well.

CEOs and Their Role in Social Media

We all know companies, whether large or small, should utilize social media... But what about those companies' CEOs?

CEOs hold a lot of power when it comes to the future of an organization. Besides running the logistics of their company, they also are the public face behind said company. When you think of Facebook, you think of Mark Zuckerberg. When you think of Apple, you still think of Steve Jobs. So why do we identify with these people so much?

The answer is this: When consumers think about companies, they (or at least I do) think about a giant machine that runs itself. There's no connection, no emotion, and no care or concern. These CEOs give the company a name, and face, and a personality. A living human being gives the consumers someone to connect themselves to the faceless company name.

When it comes to social media, CEOs should take advantage of this connection. According to a study from Ragan.com, 68% of Fortune 500 CEOs have no social media presence. In my opinion, this statistic is appalling. With so much potential to create interpersonal communication through social media, CEOs have a lot of ability to positively promote their company. If what I've learned in my classes is true, people put the most trust in the highest source, and consumers are more likely to develop brand loyalty if they feel personally connected to the company.

Take a look at the top CEOs on Twitter. What do these people have in common? They engage their followers, tweet both professionally and personally, and are active in their use. By using social media themselves, CEOs seem more creative, innovative, and modern, which in turn reflects back positively on the company as a whole.

If I was advising a CEO, I would suggest using social media daily, while showing caution. You want to show your own personality without damaging the image of the company. I would advise using Twitter daily to promote new products and events, while using Instagram to give behind-the-scenes views of the company. Used in the right way, social media can make a company's image while creating lasting relationships with customers.

Pros and Cons of Social Media

Social media is an amazing tool. It gives the average person the ability to reach a large amount of people in a small amount of time. However, with so much ease comes lot of possible negative outcomes. 

First, the pros. Social media is easy to use, and therefore anyone can use it. Social media is also free, not including any advertising a company buys. Social media gives companies the ability to build brand loyalty with their customers. Customers feel they are building relationships through interpersonal communication, and therefore feel their opinion is heard and matters. 

Next, the cons. Like I mentioned, anyone can use social media. With that, it can be very easy to Tweet something accidentally. Companies need to create their own voice and decide their relationships with their customers. Whether a company decides to be witty with their responses or factual, they have to be careful as to not offend anyone, which could create a serious public relations crisis. On the individual level, social media accounts represent the person as a whole, meaning people need to be careful in how they present themselves online.

While social media is a great tool for individuals and companies to promote themselves, there are the negative possibilities that come with it. Once people know how to properly use these tools, people can better build their brand awareness.