Question

5)

a) Describe how social media differ from traditional commercial media and how they (social media) redefine and extend the traditional three-party business model (producer, buyer or consumer, third parties) of commercial media.

b) Use a social media platform of your own choice to illustrate ways by which social media redefine and extend the traditional practices of commercial media and the business models that commercial media have traditionally used.

Answer 1

Social media like the various platforms online, for example, FB, Twitter, LinkedIn, Instagram, etc and traditional media like advertising on TV, or newspaper, or billboards, etc.

The difference lies in the fact that social media is a two-way conversation between the brand and people, over a public platform, while traditional media is one-sided

Also, social media is an open system where people are free to voice there opinion about a company, service, product, etc while traditional show only one side of the picture from the company

Social media often delivers raw, authentic content, while traditional has more polished content.

Engagement is high is social media while it's minimal in traditional

There is much more difference regarding the influencers on both, the orientation of message, transparency, etc..

The social media has redefined the three-party business model, while in traditional it was opaque, presented from the side of a company or a product on a TV commercial or billboard. But in social media, the platform still acting as a facilitator has engaged the customers too in a real-time conversation. Now, with a launch or promotion, people give their opinion if they like it or not and what are their expectations. Thus, giving more power to the buyer. The competition has become stiff for people, now it's difficult to fake and traditional marketing of hyped claims may not work here. Social media is all about being authentic by the products or business.

Thus, the three-party business model which was just one side is now two-sided and involves a dialogue.

b) For example, twitter a popular microblogging site. Recently a new product was launched by Burger king to impress the vegans with its all-vegetarian offering but it was grilled on the same oven/stove as the meat. It got people's fury and it was all over social media. It soon became a trend and people started boycotting the product and criticizing Burger King.

The same is with any new launch, it can have a trajectory that can bring it a lot of earned media, or thwart the future growth plans. Mostly, with the movies, where the hype is created with these social media channels and may fall flat if people dont like it.

Businesses are also using the channel to announce their offerings, handle people issues, and keep the engagement on. Thus, what in traditional media gave power to advertisers is now taken up by the consumers. Brands have become more cautious regarding their image and claims. Thus, traditional media has extended to include the voice of the buyer too. These channels are now increasingly used to advertise the same content, they use to do on traditional media. The difference is that now people can judge it right away.