Year: 2024 | Month: February | Volume 69 | Issue 1Special

The Role of Social Networks in Shaping Consumer Trends and Developing the Advertising Industry

Yanina Lisun Liudmyla Semenova Olha Kudyrko Svitlana Kovalchuk and Dmytrii Semchuk
DOI:10.46852/0424-2513.1.2024.2

Abstract:

In recent decades, the pervasive influence of social media on the economy, particularly within the marketing and advertising sector, has become increasingly evident. This investigation delves into the multifaceted role played by social networks in shaping consumer trends, tracing their evolution from rudimentary online communities to pivotal marketing platforms. Leveraging their capacity to accumulate intricate user data, social networks have forged novel pathways for the implementation of targeted advertising initiatives. Consequently, they are instigating transformative developments within the advertising sector, propelling the advancement of innovative and individualized advertising strategies. This article endeavors to scrutinize these dynamic processes and shed light on the principal trends and challenges confronting the contemporary advertising sector within the prevailing backdrop of the escalating influence of social media. Preceding the emergence of social media, consumer behavior predominantly relied on traditional media sources. However, the advent of social media has substantially broadened the accessibility of information, encompassing reviews and recommendations, thereby exerting a notable impact on consumer decision-making processes. Social media platforms establish a robust word-of-mouth system and afford influencers the capacity to shape consumer trends. The customization of content on social media not only presents novel marketing prospects but also engenders inquiries regarding the safeguarding of privacy and confidentiality. Scientific evidence supports the assertion that social influence significantly contributes to the domain of consumer choice. Research has demonstrated that the observation of online choices made by friends or acquaintances exerts an influence on individual decisions. This phenomenon stimulates a desire for social approval and imitation, wherein individuals are inclined to undertake actions akin to those in their social milieu, either to foster a sense of belonging to a group or to sustain their social standing. The consequences of such influence assume a pivotal role in shaping consumer behavior and decision-making processes. In light of this influential factor, it is plausible to anticipate a trajectory wherein marketing strategies incorporating social media and influencer marketing will evolve toward heightened levels of personalization. Brands are likely to persist in exploring methodologies that facilitate the organic engagement of consumers through social connections.

Highlights

  • Social media has undergone a transformative evolution, shifting from a mere communication tool to a powerful marketing platform, influencing consumer preferences, and necessitating innovative, personalized advertising strategies.




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Economic Affairs, Quarterly Journal of Economics| In Association with AESSRA

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