social media and social networking
TRANSCRIPT
Social Media and social
networking
Who are we?
Chirag Dhamija
Jordan Swance
Hatim Elbadwai
What is Social Networking?
A social networking service (also called SNS) is a platform to build networks or social relations among people who share interests, activities, backgrounds or real-life connections.
Social networks are web-based services that allow individuals to create a public profile, to create a list of users with whom to share connections, and view and cross the connections within the system. Most social network services are web-based and provide means for users to interact over the Internet, such as e-mail and instant messaging.
The main types of social networking services are those that contain category places (such as former school year or classmates), means to connect with friends (usually with self-description pages), and a recommendation system linked to trust. Popular methods now combine many of these, with American-based services such as Facebook, Google+, YouTube, LinkedIn, Instagram, Tumblr, and Twitter.
History
Social Media before 1900
The earliest methods of communicating across great distances used written correspondence delivered by hand from one person to another.
In 1792, the telegraph was invented. This allowed messages to be delivered over a long distance far faster than a horse and rider could carry them. Although telegraph messages were short, they were a revolutionary way to convey news and information.
Two important discoveries happened in the last decade of the 1800s: The telephone in 1890 and the radio in 1891.Both technologies are still in use today, although the modern versions are much more sophisticated than their predecessors.
Social Media in the 20th century
Technology began to change very rapidly in the 20th Century. The earliest forms of the Internet, such as CompuServe, were developed in the 1960s. Primitive forms of email were also developed during this time.
By the 70s, networking technology had improved, and 1979’s UseNet allowed users to communicate through a virtual newsletter.
The first recognizable social media site, Six Degrees, was created in 1997. It enabled users to upload a profile and make friends with other users. In 1999, the first blogging sites became popular, creating a social media sensation that’s still popular today.
Social Media Today
After the invention of blogging, social media began to explode in popularity. Sites like Myspace and LinkedIn gained prominence in the early 2000s, and sites like Photo bucket and Flickr facilitated online photo sharing.
YouTube came out in 2005, creating an entirely new way for people to communicate and share with each other across great distances.
By 2006, Facebook and Twitter both became available to users throughout the world. These sites remain some of the most popular social networks on the Internet.
Other sites like Tumblr, Spotify, Foursquare and Pinterest began popping up to fill specific social networking niches.
Major Industry Players
Facebook has invested billions to create critical mass, and now that it has essentially penetrated every corner of the globe, it is time to cash in. With its disastrous IPO of last year firmly in the rear view mirror, Facebook’s ad revenues have exploded, especially on the mobile side of its business, where it generated more than 40 percent of its total ad dollars during the second quarter, up from approximately 25 percent the previous year
LinkedInLinkedIn is largely a one-trick pony. But gaining mastery over the professional networking and job search space like no other platform, social media or otherwise, is a pretty good trick.
LinkedIn has a unique business model, deriving revenue from multiple streams, including mobile and web ad sales, premium user subscriptions and selling its database of millions of resumes to corporate recruiters – which has become increasingly lucrative over the years.
Twitter has generated considerable buzz recently after it filed an IPO notice with the SEC, punctuating its meteoric rise, even by tech standards. In a little more than seven years, Twitter went from fledgling start-up to one of the most influential communication platforms in the world, today boasting more than a quarter of billion users who send approximately 58 million ‘tweets’ a day. Most users use Twitter to send or read quick, short bursts of information, and it’s not clear that they will be receptive to appeals from advertisers.
InstagramInstagram is an online mobile photo-sharing, video-sharing and social networking service that enables its users to take pictures and videos, and share them on a variety of social networking platforms, such as Facebook, Twitter, Tumblr and Flickr.
The service was acquired by Facebook in April 2012 for approximately US$1 billion in cash and stock. In 2013, Instagram grew by 23%, while Facebook, as the parent company, only grew by 3%.
Social/Political Impact
Social Media has rapidly grown in importance as a forum for political activism in its different forms. Social media platforms, such as Twitter, Facebook and YouTube provide new ways to stimulate citizen engagement in political life, where elections and electoral campaigns have a central role.
Personal communication via social media brings politicians and parties closer to their potential voters. It allows politicians to communicate faster and reach citizens in a more targeted manner and vice versa, without the intermediate role of mass media.
Reactions, feedback, conversations and debates are generated online as well as support and participation for offline events. Messages posted to personal networks are multiplied when shared, which allow new audiences to be reached.
The M5S Movement, commonly known as Five Star Movement in Italy has evolved rapidly to become a significant political player by using social media to engage like-minded people in virtual and real life political action.
Financial Stakes
How Financial Advisors Are Using Social Media
Today's investment advisors are well aware of social media giants like Facebook, Twitter and LinkedIn, yet about 50% don't know which levers to pull and which buttons to push to make social media a key tool in their firm's marketing campaigns.
In a recent study of 400 U.S. financial advisors, 48% of advisors report using social media to interact with investors on a daily basis; 74% of U.S. investment advisors say social media is a useful tool in hiking assets under management, while 50% say they have “successfully used social media to convert prospects into clients."
Wealth management firms that fail to adopt social media will miss an opportunity to build relationships with clients on their terms. This is becoming increasingly critical as investors are demanding online resources to help them better understand investment strategy and advice.
Conclusion
