In the past few years, social media platforms have seen a massive bloom in users. With a vast majority of people having at least one social media account, social media has become crucial in many aspects of life. Subsequently, its impact is visible on all levels, including individuals and businesses to communities and economies. Social media directly impacts a country’s economy with direct job opportunities; hence, its role in economic growth is profound.
Contribution of Social Media To Employment Opportunities
Social media platforms are no longer used for fun but to work on serious jobs too. For instance, LinkedIn, a professional social media platform, helps job seekers connect to potential employers. One can also use this platform to show their experience and skills. It has enhanced the process of job searching and is allowing users to connect with new employment opportunities.
Furthermore, the platforms are increasing employment opportunities by allowing small businesses to reach out to potential customers at a small cost. For instance, with a minimal budget, a small business working on the niche of 2D Lotto can influence the audiences on social media to invest in such services hoping to see their name in Lotto Result. Reports indicate over 50 million small businesses across the globe are using Facebook Pages to connect with new customers. With this exposure, small businesses are also generating employment in different departments such as marketing, sales and customer service.
Marketers around the globe are employing digital marketing strategies to grow their businesses. 90% of marketers agree that social media marketing has been an effective way to increase brand exposure. With the rising interest of marketers in social media marketing, the demand for content creators, writers and graphic designers has increased. Also, marketers are not only hiring professionals but also freelancers with experience but without an educational degree. This trend is highly beneficial for the young generation who wants to earn income through creativity at a young age.
Finally, social media platforms have opened up the gig economy. With social media platforms, it is now possible for all individuals to monetize their skills and connect with a broader audience. Moreover, without formal boundaries, the members of the gig economy also enjoy additional benefits like the flexibility of work.
The Rise Of Influencer Marketing
Thanks to social media platforms for giving rise to a whole new marketing category, including influencer marketing. In 2022, influencer marketing had a valuation of $16.4 billion. With the rising importance of influencer marketing, many countries have also opened up influencer marketing agencies. The beauty of social media platforms is that they allow everyone to become an influencer or open an online business. Only the sky’s the limit for users considering social media platforms to earn their livelihood seriously.
Social Media Platforms Giving Rise To Participatory Economy
Different social media platforms are helping economic growth by uplifting the participatory economy. As a result, many individuals now have a way to contribute to economic growth. Studies also indicate a positive link between social media and entrepreneurship and increased economic opportunities.
The employment opportunities which social media platforms create hugely fall under the umbrella category of the creator economy. Currently, the market size of the creator economy is $104.2 billion. In addition, this economy also houses many startups. Hence, social media platforms contribute to both the gig economy and the creator economy, which are now crucial for the overall economic growth of a country.
The Role Of Social Media Platform On Economic Growth
Everyone is getting a financial boost, from individuals to big companies, because of social media platforms. Apart from the direct contribution, it also indirectly contributes to economic growth through effective feedback systems, cost reduction and branding strategies. With easy customer connection and feedback, social media, time and again, has proven to help increase the value of the products and revenues of businesses.
However, even though social media helps economic growth, its contribution to different countries varies. For instance, the contribution of social media to economic growth is higher for developed countries than for developing countries. This disparity lies in many factors, such as the penetration level of the internet, smartphone and social media users. These parameters are well-performing in developed countries; hence, developed countries are experiencing more economic growth because of social media platforms.
