Social Medias and its impact on business and society

Social media "a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of usergenerated content." Social Media has added a participatory element where an individual not only receives information but has the ability to take part in the creation and distribution of content. Furthermore, social media tools have enabled a dialogue and discovery around this content. It is the combination of these unique and appealing aspects that defines the true value of social media. Value is derived not only from the primary distribution of branded content but also the additional interactions that result as users share, participate with, and propagate advertising content. In the end, social media adds another layer of value through its ability to engage users and create additional reach The size of the network is primarily a reflection of the active participation of the audience, as consumer-generated media represents that vast majority of all content. For consumers the true value of a network is measured by the frequency of engagement of the participants. For marketers, endorsement by consumers in the form of friending/following/subscribing validates their efforts and activates a viral distribution of their brand across channels.
Examples of Social Media Sites Facebook Twitter Linkdin Google Plus MySpace

Social Medias impact on Business Social networks operate under an autonomous business model, in which a social network's members serve dual roles as both the suppliers and the consumers of content. This is in contrast to a traditional business model, where the suppliers and consumers are distinct agents. Revenue is typically gained in the autonomous business model via advertisements, but subscription-based revenue is possible when membership and content levels are sufficiently high. The modern business world has changed so much over the last few years that sometimes it pays to take a moment out just to fully digest everything that has

happened. When we do this, one of the factors that really stands out is the degree to which social media affects the way we do business.

Social Medias impact on Society Social media is the quickest and easiest way to gather opinions from customers/potential customers and to react accordingly to market demand. Web-based social networking services make it possible to connect people who share interests and activities across political, economic, and geographic borders. Through e-mail and instant messaging, online communities are created where a gift economy and reciprocal altruism are encouraged through cooperation. Information is particularly suited to gift economy, as information is good and can be gifted at practically no cost.