Show Less
Restricted access

Measuring the Impact of Social Media on Business Profit & Success

A Fortune 500 Perspective

Cong Li and Don Stacks

An organization can have a high number of «likes» on its Facebook page and lots of «followers» on its Twitter account, but does that mean anything from a financial perspective? Is it worth the organization’s effort to maintain an active presence on social media in order to generate more revenue? Is it possible to use social media metrics such as the number of «likes» and the number of «followers» to predict an organization’s «success» even though those metrics are nonfinancial indicators? Prior research studies have looked at how organizations should utilize social media, but few studies have provided strong empirical evidence to support how the outcome of using social media should be measured and why. Focusing on Facebook, Twitter, Google+, and YouTube, this book examines how Fortune 500 companies use social media. Collected over a five-year period, the authors assess the companies’ social media activities and their business performance data, such as stock return, total revenue, net income, and earnings per share. These data, both financial and nonfinancial, are matched and statistically analyzed to see whether a company’s social media activities are significantly associated with its business performance.
Show Summary Details
Restricted access

Chapter 1. Introduction


| 1 →

Chapter One


Chapter Overview

In this opening chapter we will describe the emergence of social media and their impact on business operations. Specifically, we will discuss how social media have changed the way people communicate with and about business, and why measuring the influence of social media on business performance is necessary and important, but also difficult. Based on these discussions, we aim to answer the following questions:

• What are social media, and how are they evolved?

• What is the role of social media in the promotional mix within today’s business environment?

• How have social media changed the way people communicate with and about business?

• Why is testing the impact of social media on business performance so difficult and what is our approach in this book? ← 1 | 2 →

Emergence of Social Media

You are not authenticated to view the full text of this chapter or article.

This site requires a subscription or purchase to access the full text of books or journals.

Do you have any questions? Contact us.

Or login to access all content.