Essay: Effects of Social Media Advertising

Organizations are expanding globally to capture a large customer base and increase their revenues. They intend to take advantage of effects of social media advertising in the growing markets for their products internationally. However, reaching geographically dispersed consumers is not an easy job for the management; they need to adopt appropriate strategies for achieving these objectives. The marketing function of businesses plays a major role in facilitating the firm to reach a global audience. It is the responsibility of the marketing team to inform consumers about the existence of the product and persuade them to make a purchase.

Moreover, they are also accountable for ensuring that the needs of customers are timely met and the product is delivered to them upon request. But, as organizations are targeting customers that are located outside their national boundary, it is increasingly becoming challenging for them to satisfy their needs. An important function of marketing is “advertising”, which fulfills two main objectives that include i. Inform and ii. Persuade.

Effects of Social Media Advertising

Advertising enables organizations to create awareness about the existence of their products and persuade the consumers to make a purchase. There are different forms of advertisements that companies can use to promote their products such as print and electronic.

Although there are several mediums that have helped firms over the past years through which they can advertise, with the evolution of advertising; social media has emerged as a key tool for businesses to reach a vast audiences.

Social media advertising has come a long way in a relatively short period of time. The first advertising option was launched by Facebook in May 2005. People had not expected that this advertising media will help in generating revenues of an estimated $8.4 billion in 2015 i.e. within 10 years.

Modern businesses are highly motivated to use online advertising, as it facilitates finding new potential customers by using users’ own shared information and identifying their interests.

Social media advertising is not a buzzword anymore. It has become a key tool for increasing sales and companies are increasing their spending on social advertisements. There are millions of consumers who use Facebook, Twitter, and other social networks, who would not want to take advantage of it.

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