Question

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. (1000 words)
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. (1000 words)

Answer 1

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Answer1:

social media differ from traditional commercial media:

A).

It’s 2016, and the experts are still saying social media is “on the rise.” According to a recent PR Newswire release, the global social media analytics market is set to grow up from $1.6 billion in 2015 to $5.4 billion by 2020.

Among traditional PR agencies, where earned media is king, the contrast between social and traditional media is still a constant struggle.

Here are a few of the reasons that there are immense differences between traditional and social media:

1. Social media reaches the highest possible audience, while traditional media’s audience is usually more targeted.

2. Social media is flexible (you can make changes once circulated), whereas traditional media, once published, cannot be changed.

3. Social media is direct and immediate, while traditional can be delayed due to media coverage times.

4. Social media is a two-way communication process, and traditional is one-way.

Social media often has unpredictable demographic data, but traditional media is more accurate.

When we rely on social media to substitute the traditional media in scenarios where budgets are tighter or turnaround is shorter, it appears like an unjustified decision. There are areas where social media cannot replace traditional — such as improving strategy for regions without strong online presences, or when self-reported demographic information will not suffice.

Therefore, thinking about both steps within finding, converting, and keeping customers seems like a mentality shift we all need to make. This has already proven true.

As more organizations pursue to transform data into value, second-party data sharing procedures are gaining traction. Third-party data can add substantial value for brands that directly exchange information with select partners in these exclusive arrangements.

Take financial services – industry providers have traditionally relied upon third-party data to send pre-approved offers to consumers. Today, savvy marketing professionals in this industry are stretching the use of non-bureau-based data to assist in delivering second-party data insights. Say a credit card issuer wants to drive sign-ups for its co-branded card with retail partners – it can purchase transaction data to pinpoint frequent shoppers in the retailer’s stores and combine this with its first-party consumer data to identify which consumers do not have a co-branded card. It can then share this data with the retail partner under the terms of their agreement and together deliver more relevant co-marketing to these loyal customers.

B)

Let us choose Instagram as a social media platform and let us see how it can extend the traditional practices of commercial media.

Some of the traditional practices of commercial media which can be done via social media(Instagram) are discussed below:

1. Politics - Usually, this traditional marketing can be done on social media,i.e. on Instagram, by frequently posting and uploading stories about the progress being done by the political party and by comparing different politics, so that the people can discuss and decide which party will be the best to choose. As social media allows 2-way communication, so it will be much effective.

2. Interactions- In traditional marketing, when we watch an advertisement or some video clip, it is only one-way communication, we cannot keep our point of view or cannot suggest anything on this platform, but on Instagram, one can not only have the access to keep their point of view but can also share suggestions.

3. Impact of social media on commerce-

The rise of social media means it’s unusual to find an organization that does not reach its customers and prospects through one social media platform or another. Companies see the importance of using social media to connect with customers and generate revenue.

Some of the business models which social media can use better when compared to traditional media are - Content Marketing, Subscription, Transactions, Advertisements and so on.

Social media has been proven as most effective when it comes to the usage of the Advertisement model, as these platforms i.e. Instagram, facebook, youtube, google are used by all types of users and newspapers and news channels are getting replaced with social media from time to time.

Subscriptions on social media are very high when compared to traditional media.

Transactions are also safe in social media and can avoid scams and frauds.