Question

How would social media advertising affect the long run demand curve for videoconferencing software applications? You may illustrate your answer with examples of your choice

Answer 1

As the rapid growth of technologies and internet services majority of people's do own Smartphones, laptop, Tablet, etc. And user of such gadgets majority of them use social media such as Facebook, Twitter, Instagram, YouTube, Whatsapp, Tiktok and etc. This user spends their majority of time in Social media rather than on traditional t.v channels. Every advertisements on social media has successfully show good results for the product that has been advertised. This advertisement can be executed through various social influencer, or typical google and Facebook ads.

Recently videoconferencing has became very popular due to COVID-19 lockdowns. Different types of people's (such as Students and teachers, business man's, Broad of directors for AGM meeting and etc) wants to connect through video conferencing for the related purpose. So these day's advertisement of video conferencing software application could be most opportunist and become huge successful (eg, Zoom Meeting app, Google Meeting app) it would create convenience to above listed personalities. They will become use to it. If they will become used to it, then they would continue with the same software application even if the situation would become normal from COVID-19 pandemic, just for their convenience.

So conclusions is that if one can effectively advertise and promote videoconferencing software applications, then the demand for application would be the same even if there would be change in situation or not, and that shows the inelastic demand curve.