Social media and networks
Social networks addresses the fundamental need to connect with the world. They have strong network effects, and high switching cost.
Fundamentally, Social networks mainly encourage users to connect with each other. Social media mainly encourage users to share content.
- Social networks: Facebook, LinkedIn, Twitter
- Social media: Instagram, TikTok, YouTube
People spend hours on average per day on social media, which makes it a great place for advertisers to reach their target audience.
Social marketing
The key point in social marketing is identifying customers, understanding their behavior, and measuring results. After creating content, it is important to engage with the audience. This can be done by asking questions, and responding to comments.
Marketers can use analytic tools to measure the effectiveness of their social media campaigns.
| Advantages | Disadvantages |
|---|---|
| Higher reach | Negative feedback |
| Better user tracking | Mistakes spread fast |
| Target audience | Biased feedback |
| User engagement |
Indicating brand awareness:
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Cost per impressions (CPI / CPM): The cost for displaying an ad to 1000 people Indicating customer retention:
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Customer retention rate: The percentage of customers that return
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Average revenue per purchase
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Average units per purchase Indicating lead (interest) generation:
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Click-through rate (CTR): The percentage of people who click on an ad
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Conversion rate (CR): The percentage of people who take a desired action
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Cost per Click (CPC)
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Cost per Acquisition (CPA): The cost to acquire a customer