New technology is providing a wide range of ways for people to make money. Social media is offering a special challenge, though, since it can be difficult to measure revenues and return on investment. This is precisely why three of the major social media companies, Facebook, LinkedIn and Twitter, are offering new tools and features that focus on revenue implications.
The idea is that you can measure — sort of — the financial benefit of some social media networks. And these three social media sites are chomping at the bit to prove themselves worth an investment, since they are expected to go public at some point in the future. Facebook is especially interested since the site has been stating an IPO as a goal for a long time.
Social media truly can be helpful for business advertising and marketing. It can even be helpful for individuals. This is because the reach is wide as you access the networks of people in your own network. However, pinpointing direct return on investment is difficult, due to the nature of social media. While anecdotes are promising, actual data is hard to come by. It is encouraging, though, that social media outlets are working on coming up with solid models that could eventually produce hard data.
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