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Recession and Social Media Correlation?

January 11, 2009

Many people will argue that commerce and e-commerce are two separate things. But, when you strip away all the technological jargon it is boils down to the bartering system. E-commerce simply provides an alternative payment system . Since it’s rise since the 1990’s, ecommerce is changing the way that we do business significantly and as more people begin to jump on board the e-commerce train they need find or develop and implement methods of standing out with everyone else online. This is where Search Engine Marketing has come in to “save the day!” Search Engine Marketing has steadily increased since 2004 as new methods and buzz were created in and around this field.

However social media has become an interesting topic over the net and in the media since last year. Most significantly, is the number of people interested in social media marketing—especially in the business and personal public relations field. However, ironically, the huge increase in social media seems to correlate with the beginning of the economic recession in the fourth quarter of 2007.

Now, as many top research institutions ingrain into their future scientists and researchers, correlation does not infer causality, but the speculation remains: is this an isolated event where is just so happens that we had a recession and at the same time more people just started looking different methods of utilizing social media. Or is there a significant-enough correlation—at least to .05 statistical threshold— that many businesses are trying to develop ways to combat revenue declines and generate buzz around their companies? Is this only a desperate attempt for companies, to engage their consumers by allowing others to share why “I” should spend “my” hard-earned money on their product –now—in these times. It is cost-effective and I have seen where it can save businesses 18K per month or more. According to Paul Gillin’s, book Secrets of Social Media Marketing,  sophisticated pogram like a flull-blown customer commuity typically don’t cost more than $50,000-$300,000; whereas, traditional advertisement can cost $200,000 to $600,000.

Is this just a Fad or is it here to stay. Well, since it is too early to say if it is here to stay, I believe it is currently what is referred to as a fad, and could possibly plateau for a while. However, since it’s an important topic, more software developers are and will continually develop and create better methods causing an increase—as always. It will continue to increase as more methods are developed to analye the results.  Only time will tell definitely.

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One Comment leave one →
  1. January 16, 2009 7:44 pm

    I am amazed with it. It is a good thing for my research. Thanks

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