EAN: 9781433125782

MEASURING THE IMPACT OF SOCIAL MEDIA ON BUSINES...

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.

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