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How Social Media Profits from Advertising and Social Commerce

In: Social Media Monetization

Author

Listed:
  • Francisco J. Martínez-López

    (University of Granada, Department of Business Administration 1)

  • Yangchun Li

    (Zhejiang University of Technology, School of Management)

  • Susan M. Young

    (Fordham University, Gabelli School of Business)

Abstract

Social media advertising comprises a major revenue source for many large social media platforms. The Interactive Advertising Bureau defines social media advertising as “an online ad that incorporates user interactions that the consumer has agreed to display and be shared. The resulting ad displays these interactions along with the user’s persona (picture and/or name) within the ad content (see Chu, Journal of Interactive Advertising, 12(1), 32, 2011).” Social media advertising is quite different from traditional mass media advertising. Social media advertising incorporates more social elements in the advertising process. Social media ads can be interactive, immersive, and influential when social media users are browsing social media content. Social media users can comment, distribute, and like social ads. Social media ads can also be presented in an organic form which looks similar to regular social content displayed in users’ online social circles.

Suggested Citation

  • Francisco J. Martínez-López & Yangchun Li & Susan M. Young, 2022. "How Social Media Profits from Advertising and Social Commerce," Future of Business and Finance, in: Social Media Monetization, chapter 4, pages 45-56, Springer.
    • Handle: RePEc:spr:fuobcp:978-3-031-14575-9_4
    DOI: 10.1007/978-3-031-14575-9_4
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