Billions of people rely on social media to communicate with loved ones, find entertainment, and discover new products. Intelligent businesses are changing their business plans to incorporate these new technologies, while others are getting left behind.
More Consumer Insights
Companies no longer have to guess information about their target audience. Marketers who collect and analyze social data can create detailed consumer profiles that include people’s interests, relationships, and even the kinds of advertisements they are most likely to engage with willingly.
The insights social media generates allow companies to be more intentional about their advertising campaigns. They can target segments of the market that they know are more likely to purchase their products and tailor advertisements to appeal to their target audience directly.
Social Media Has Changed Advertising Formats
Traditional forms of advertising, such as radio ads and billboards, are still relevant. However, advertisements adapted to newer technologies such as Instagram Reels or podcasts can generate more revenue than old-fashioned marketing.
In addition to format, social media has changed the content of advertising. Consumers are more likely to engage with ads that have some form of inherent value, such as educational content or a story about the company’s employees. They tend to ignore blaring marketing material about discounts and sales.
Some Businesses Are Resistant to Change
Despite the proven revenue that social media generates for companies that are willing to adapt, some companies are still stubborn. Many marketers are frustrated by the fact that their insights about the importance of social media are often ignored by other departments. If anything, social media has increased the difference between businesses that are willing to adapt and those that are stuck in their ways.
Social media can be a valuable source of revenue, help businesses increase their audience, and allow for more research on consumer behavior. However, it is only a powerful tool if wielded correctly. Businesses that ignore insights from social media or do not adapt their behavior to the new rules of the Internet will struggle.