The Rise of Social Media Marketing: How an Entire Industry Has Transformed
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University of Northern Iowa UNI ScholarWorks Honors Program Theses Honors Program 2018 The rise of social media marketing: How an entire industry has transformed Ryan Steven Doser University of Northern Iowa Let us know how access to this document benefits ouy Copyright ©2018 Ryan Doser Follow this and additional works at: https://scholarworks.uni.edu/hpt Recommended Citation Doser, Ryan Steven, "The rise of social media marketing: How an entire industry has transformed" (2018). Honors Program Theses. 313. https://scholarworks.uni.edu/hpt/313 This Open Access Honors Program Thesis is brought to you for free and open access by the Honors Program at UNI ScholarWorks. It has been accepted for inclusion in Honors Program Theses by an authorized administrator of UNI ScholarWorks. For more information, please contact [email protected]. THE RISE OF SOCIAL MEDIA MARKETING: HOW AN ENTIRE INDUSTRY HAS TRANSFORMED A Thesis Submitted In Partial Fulfillment Of the Requirements for the Designation University Honors Ryan Steven Doser University of Northern Iowa May 2018 This Study by: Ryan Doser Entitled: The Rise Of Social Media Marketing: How An Entire Industry Has Transformed has been approved as meeting the thesis or project requirement for the Designation University Honors ______ ______________________________________________________ Date Matthew Wilson, Honors Thesis Advisor ______ ______________________________________________________ Date Dr. Jessica Moon, Director, University Honors Program Doser 1 Purpose With social media continuing to play an integral role in our daily lives, being a marketing major and interning for a digital marketing agency, I have real world experience with social media marketing and have expanded on that knowledge through thesis research. There are three main accomplishments I plan to take away from the thesis after completion. The first is to incorporate the social media marketing knowledge I have developed through this process into my future career. Secondly, providing this information and data for readers is important, as social media continues to evolve and become more prevalent in the business world. The final accomplishment to take away is to help separate myself from job competition in a competitive industry. Showcasing a thesis on my portfolio will be a beneficial project to show employers. Introduction This thesis focuses on social media from its initial roots to the massive impacts it has made on the advertising industry today. With that in mind, the main research question to explore is “how has the social media industry transformed over time?” In order to answer this, I evaluated key sources through online research and incorporated my own personal work experiences. The overall intent of this project is to evaluate three important central themes: the history of social media, today’s dominant platforms & marketing practices, and future implications of social media marketing. The research method used throughout this thesis project was analytical and foresightful. Extensive research has been focused on past and current social media marketing trends, in addition to future implications. Idea generation, utilizing credible resources, meeting deadlines, showcasing graphs/statistics, and making necessary revisions has all helped me work towards a Doser 2 final product. When researching and continually generating ideas for my project, it has been critical to find insightful and industry trusted sources to ensure success for my thesis. Literature Review and Analysis Social media plays an integral role in today’s digital world, not only in the advertising field, but in the midst of society. As seen in Figure One from Statista, “from 2008 to 2017 the percentage of the U.S. population who currently uses any social media has increased by 57 percent, accounting for a total of 81 percent of the entire U.S. population. The number of worldwide social media users has reached 2.34 billion, and is expected to hit 2.95 billion by 2020” (“Percentage of U.S. Population”). Figure One: “Percentage of U.S. Population with Social Media Profiles” (Statista) Because of its astronomical usage rate, there is plenty of useful, existing information Doser 3 regarding social media. Utilizing credible sources like AdWeek, AdAge, MarketingLand, Business Insider, Digital Trends, Social News Daily, and even blog posts from respected influencers has provided me with industry trusted information to support the claims I will be making. Influencers in the field are typically individuals with experience in the social media marketing industry, which have proven themselves with their work. Although figures like Gary Vaynerchuk and Larry Kim are well known and considered influencers in the field, leaving them out of my research proved to be beneficial. Their content is usually geared towards promoting their own products and developed with baseless assertions with a lack of objectivity. Therefore, researching and utilizing works from influencers such as Lauren Johnson, Laura Collins, among others with less subjectivity and self-promotion ended up being the superior route. In addition to articles from media sources, I have found gaining information from blog posts to be very valuable. There are millions of blogs published on the Internet regarding social media marketing, so it is important to decipher the trusted information from the click bait. The best social media marketing blogs I came across through research were from both influence bloggers and digital marketing agencies. Although media articles are valuable, implementing blog posts and other direct outlets allow the thesis to sound more authoritative and realistic. Central Theme #1: Background and History of Social Media Where did the “social media” concept evolve from and when did it all begin? What would Facebook, Twitter, Instagram, and other platforms look like today without the ideas from the original social networking sites from the 1990s and early 2000s? What were the main implications of the first social networking sites created? These are just a few critical questions that must be addressed when evaluating the history of social media and its impact on the industry Doser 4 we know of today. Although through research I discovered information about organizations like the Bulletin Board System (BBS), CompuServe, and AOL, most credible sources do not consider these programs to be the first legitimate social networks. According to an article from Digital Trends, “in 1997 a site called SixDegrees.com sprung up being the very first to allow users to create profiles, invite friends, organize groups, and surf other user profiles. At its peak it had an estimated 3.5 million registered members” (Shah). SixDegrees was eventually bought out in 1999, and the next notable social giant that followed was Friendster in 2002. It is well known that Friendster used similar concepts to SixDegrees, yet what qualified them to be next in line as the major social giant? Shah points out that “Friendster focused on a routine dubbed the “Circle of Friends,” and promoted the idea that a popular online community can only exist between people who truly have common bonds. Friendster’s user base peaked over 115 million members by 2011” (Shah). Therefore, it is evident that Friendster capitalized off of SixDegrees, yet what led to their complete demise in 2015? Friendster’s foundation paved the way for numerous social networking giants to follow. Although LinkedIn technically launched in 2003, their popularity did not take off until around 2010. Other notable networks that followed Friendster were Tribe.net in 2003 and Orkut in 2004. Tribe.net was a social network focusing on “users being able to establish tribes, which enabled them to elaborate on a computerized social network with thousands of tribe members. In other words, the tribes resembled topical forums” (Ruberg). The popularity of tribe.net never really took off compared to other networks, as they encountered a content policy controversy along with strong competition in the industry. Similar to tribe.net, Orkut was a social networking website that lasted a bit longer and experienced worldwide user exposure. An engineer from Doser 5 Google originally founded the network, and Google took ultimate control until Orkut’s departure in 2014. Alexa describes Orkut as a “service designed to help users meet new and old friends while maintaining existing relationships. The features changed significantly over time and popularity of the network quickly shifted from the U.S. to Brazil and India users” (Alexa). Moreover, Orkut’s American user base quickly died off due to an influx of fake profiles, hate groups, and censorship issues. The platform was ultimately inept when it came to adapting to maintain engaged members. The social network that became the next major player in the industry after Friendster in 2003 was MySpace. MySpace was huge during the mid 2000s and according to Mashable was “the most visited site in 2006, as MySpace surpassed Google” (Cashmore). The platform was best known for their emphasis on music, pop culture, and having a young generation of users. Digital Trends credits MySpace’s initial success as being “attractive to the young adult demographic with music, videos, and a funky, feature filled environment. It felt hipper than Friendster from the start and that drew users to switch to MySpace” (Shah). Therefore, MySpace at its peak was untouchable, as their user base continued to exponentially grow throughout the mid 2000s. Like their social networking predecessors, MySpace eventually fell around 2011. Who was the next social media player to take over? Founded in 2004 by Harvard University students, Facebook originated as a “Harvard only exercise and campus-oriented site” for two years prior to opening to the general public (Shah). Facebook was launched to the public domain in 2006 and quickly captured the attention of millions who were eager to switch to the social network. The social network was already classified as “big business” by multiple investors. So much so that in 2009, “Silicon Valley bigwigs such as Paypal founder and billionaire Peter Theil invested tens of millions of dollars Doser 6 into the platform” (Shah).