Due to its growing popularity, social media is increasingly used by companies to build a bond with their target audience. A new application of social media is its use as a means of payment. In this article, I am curious about whether using social media as a means of payment is a legitimate marketing tool or an ethical dilemma.
During New York Fashion Week last February, Marc Jacobs set up a pop-up store where you couldn’t pay with money. In exchange for tweets, Instagram photos and Facebook posts with the hashtag #MJDaisyChain, products could be paid for. This got me thinking about using social media as a means of payment. Why is it done? What do companies hope to achieve with it? What are the advantages and disadvantages?
Despite reports that social media use has declined over the past year, use in the Netherlands remains fairly stable. However, trust in social media is declining: among those who have dropped out of Facebook, lack bahamas mobile phone number list of trust is cited as the third reason for quitting. In first and second place are: 'there are too many people on it that I have no interest in' and 'it takes up too much of my time'. This is evident from figures from the National Social Media Survey 2014 by research agency Newcom Research & Consultancy. Compared to 2013, trust in social media among Dutch people dropped from 21 to 18 percent in 2014. Young people have the most trust in social media: 31 percent. Older people have the least, with 7 percent.
Companies and consumers use social media for different reasons. Companies use it to acquire new customers, increase brand awareness and manage their online reputation. Consumers use it for relaxation, information sharing and the opportunity for social interaction. Companies see social media as a platform to reach their target group and consumers see it as a private platform to maintain their social network.
These differences in perspective often clash. This became apparent in the discussion about privacy on Facebook, among other things. In 2010, it came to light that Facebook applications were forwarding information to advertisers. Since then, reports have been appearing more often that Facebook is leaking information to third parties. The National Social Media Survey 2014 shows that 6 out of 10 Dutch people are still concerned about their privacy on social media. Concerns about the resale of data have also increased among people aged 40 and over.