Analyzing Social Media's Effect on Australian Small Businesses

This report investigates the impact of social media on the performance of small and medium-sized enterprises (SMEs) in Australia. It begins by defining social media and tracing its evolution, highlighting the shift from static networks to dynamic platforms with user-generated content. The report explores the potential uses of social media in business, including digital marketing strategies, social media analytics, and various social media marketing techniques. A comparison table is included to analyze the impacts of different social media platforms. The study references various research papers, discussing the technologies underlying social media's impact on SMEs. The report underscores how social media has revolutionized marketing, enabling businesses to reach wider audiences and gather valuable customer insights. It also emphasizes the importance of transparency and adapting to changing customer demands. The conclusion summarizes the key findings and implications of social media's role in driving business growth and success for SMEs in Australia.

Impact of Social Media on the performance of Small Business in Australia
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Table of Contents
Introduction......................................................................................................................................3
Definition of Social Media..............................................................................................................3
Evolution of Social Media...............................................................................................................4
Potential uses in Business................................................................................................................5
Underlying Technologies.................................................................................................................6
Digital Marketing.............................................................................................................................9
Social Media Analytics..................................................................................................................10
Social Media Marketing................................................................................................................11
Comparison Table..........................................................................................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

Introduction
Internet technology has created a great boom among business organizations in the
market. It has shown various impacts in the performance of business organizations in the market.
The use of IT has helped in enhancing the performance of small business enterprises in the
market. Social media has been gaining its popularity in regulating operations in the SMEs in the
market. Social media has helped in providing several opportunities in the market fir the small
and medium enterprises. Various startups have been able to set up their business in the market
with the help of social media marketing and analytics (Ainin et al. 2015). The use of social
media has helped in providing better utilization of the internet and reaching up to a large number
of people in the market. This research has focused on the impact of social media in performance
of SMEs in the market. This research has helped in understanding the extent of social media
affect the performance of SMEs in the market. This research has used previous studies based on
the impact of social media in the SMEs in the market. The potential utilization of social media in
business have been studied from previous studies based on the research topic has been analyzed.
The concept of digital marketing in the SMEs have been mentioned in the research which will
help in understanding the effect of social media on the business performance of SMEs in the
market. Different forms of social media marketing have been provided in the research that will
help in understanding the impact of social media marketing on SMEs in the market. A
comparison of impact of different social media platforms have been provided in this research.
Definition of Social Media
As commented by Wang, Pauleen and Zhang (2016), digital revolution happened with the
coining if the term Web 2.0 in 2001. The second generation of internet development have opened

new opportunities for the developers to be on the internet. Web 2.0 has been opening various
opportunities and reshaping business organizations with its implementation. It provides
collaborative learning from the first generation of the internet. However, there have been
differences between Web 2.0 and social media. As commented by Quinton and Wilson (2016),
social media is a group of web-based applications that have been developed on an ideological
and technological based of Web 2.0. Social media is a technology that runs in the Web 2.0. As
suggested by Tajudeen, Jaafar and Ainin (2018), social media is a tool or application that help in
communicating with large number of individuals all over the world.
Evolution of Social Media
Social media has been undergoing several changes with the change in time. As mentioned by (),
the concept of social network has been different from today’s online social networking sites
(OSN). Earlier social networking sites were static and pre-defined set of neighborhood can
connect with it. The earlier version of social networking sites have been limited to web hosting
space and could not create own content. The next trend of social media arrived during 1990s.
The main features of this generation have been personal profiles, increase in social interactions
and searching friends over a network. The user interface of social networking sites had become
more user-friendly than before (Lodhia and Stone 2017). Users were able to create their own
profiles over the social networking sites. The engagement of user’s over the online social
networking suites get increased with amount of time. For example, SixDegrees was launched in
1997 and it was able to reach to one million users by 1998. However, it was interrupted and
closed down by 2004. There have been several number of OSNs that followed the suit of
SixDegrees but targeted different demographic groups.

As mentioned by Lodhia and Stone (2017), the current trend of social network initiated in
2004 with concept of building both social network platform and allow a number of application to
access it. Facebook has been the leading social network with more than 750 million users all
over the world. Facebook has been the most successful social media platforms among all other
social media platforms. As commented by Lee, K.H., Herold, D.M. and Yu (2016), most of the
social media platforms have been offering platforms for developers including Hi5, Friendster,
Orkut, Facebook and Twitter. Later on, social media has gained attention of millions of
individuals all over the world and it created a revolution in the digital technology. It has become
a main mode of communication for all over the world. Twitter and Facebook has become the
most successful social media platforms by 2010 by connecting and engaging millions of people
from all over the world. As commented by Kim et al. (2015), over 200 million tweets have been
posted over the Twitter in 2011 and more than 1 billion of new content have been posted over the
Facebook on any given day. Google+ has been one of the latest social networking sites with 10
million users by 2011 and share 71.4 million items per day. This facts and figures have been
increasing with time at a massive level. The future trend of social media will focus in the
integration of artificial intelligence and dynamic content. The privacy and security of data and
information over these social media platforms will be focused in future.
Potential uses in Business
Social media has created an important role in developing businesses in the market. Social
media has helped in changing traditional methods of marketing and business. As commented by
Thach, Lease and Barton (2016), the traditional methods of marketing utilized electronic and
print media along with Internet marketing for driving traffic to any business. Various search
engine algorithms have been utilized for constantly updating content over websites. However,

with the implementation of social media, Facebook pages, Twitter accounts and You Tube
Channels have been helping in making their own presence over the internet. Social media has
helped SMEs in advertising their new products and services over their platforms at minimal
costs. Social media has helped various SMEs to adopt various segments for indulging traffic and
customers over their websites. Social media can be utilized keeping an eye to competition in the
market. Various businesses have been modifying their marketing strategies based on feeds and
facts received on social media platforms (Abed, Dwivedi and Williams 2015). Therefore, social
media helps in looking after strengths and weaknesses of competitors in the market. Collected
information helps in implementing strategies that need to be improved including social media
contests and campaigns. Social media has been helping making businesses more transparent.
Customers look for purchasing items from companies which have established credibility and
transparent in advertising campaigns. Customers have been changing their opinions based on the
market demand. Therefore, social media can be utilized to understand change in the demand of
customers.
Underlying Technologies
Implementation of social media in businesses require some strategies that need to be
followed for proper support from the social media. As remarked by Kasemsap (2019),
computerized upset occurred with the instituting if the term Web 2.0 in 2001. The second era of
web improvement have opened new open doors for the designers to be on the web. Web 2.0 has
been opening different chances and reshaping business associations with its execution. It gives
shared gaining from the original of the web. In any case, there have been contrasts between Web
2.0 and web based life. As remarked by Schlagwein and Hu (2017), web based life is a gathering
of online applications that have been created on an ideological and innovative based of Web 2.0.

Online life is an innovation that runs in the Web 2.0. As proposed by Rice et al. (2016), internet
based life is an instrument or application that help in speaking with enormous number of people
everywhere throughout the world. Web based life has been experiencing a few changes with the
adjustment in time. As referenced by Bocconcelli, Cioppi and Pagano (2017), the idea of
informal organization has been not quite the same as the present online long range interpersonal
communication destinations (OSN). Prior interpersonal interaction locales were static and pre-
characterized set of neighborhood can interface with it. The previous rendition of person to
person communication locales have been restricted to web facilitating space and couldn't make
claim content. The following pattern of online networking landed during 1990s (Yadav 2017).
The principle highlights of this age have been close to home profiles, increment in social
collaborations and looking through companions over a system. The UI of long range
interpersonal communication destinations had become more easy to use than previously. Clients
had the option to make their very own profiles over the person to person communication locales.
The commitment of client's over the online long range informal communication suites get
expanded with measure of time. For instance, SixDegrees was propelled in 1997 and it had the
option to reach to one million clients by 1998. In any case, it was hindered and shut somewhere
near 2004. There have been a few number of OSNs that pursued the suit of SixDegrees yet
focused on various statistic gatherings.
As referenced by Broekemier, Chau and Seshadri (2015), the present pattern of informal
community started in 2004 with idea of building both interpersonal organization stage and enable
various application to get to it. Facebook has been the main informal organization with in excess
of 750 million clients everywhere throughout the world. Facebook has been the best internet
based life stages among all other web based life stages. As commented by Harrigan et al. (2017),

a large portion of the internet based life stages have been offering stages for designers including
Hi5, Friendster, Orkut, Facebook and Twitter. Later via, web-based networking media has
picked up consideration of a huge number of people everywhere throughout the world and it
made an insurgency in the computerized innovation. It has become a fundamental method of
correspondence for everywhere throughout the world. Twitter and Facebook has become the best
internet based life stages by 2010 by associating and drawing in a large number of individuals
from everywhere throughout the world. As remarked by Sharif, Troshani and Davidson (2015),
more than 200 million tweets have been posted over the Twitter in 2011 and more than 1 billion
of new substance have been posted over the Facebook on some random day. Google+ has been
one of the most recent interpersonal interaction destinations with 10 million clients by 2011 and
share 71.4 million things for every day. This statistical data points have been expanding with
time at a huge level. The future pattern of web-based social networking will center in the
incorporation of man-made brainpower and dynamic substance. The protection and security of
information and data over these web based life stages will be engaged in future. Web based life
has made a significant job in creating organizations in the market. Online networking has helped
in changing conventional strategies for showcasing and business. As remarked by Ahmad, Abu
Bakar and Ahmad (2019), the conventional techniques for promoting used electronic and print
media alongside Internet advertising for directing people to any business. Different internet
searcher calculations have been used for continually refreshing substance over sites. Be that as it
may, with the execution of web based life, Facebook pages, Twitter records and You Tube
Channels have been helping in making their very own essence over the web. Web-based social
networking has helped SMEs in publicizing their new items and administrations over their
foundation at insignificant expenses. Online life has helped different SMEs to receive different

portions for reveling traffic and clients over their sites (de Oliveira et al. 2019). Web based life
can be used keeping an eye to rivalry in the market. Different organizations have been changing
their promoting methodologies dependent on feeds and realities got via web-based networking
media stages. Accordingly, web-based social networking helps in caring for qualities and
shortcomings of rivals in the market. Gathered data helps in executing procedures that should be
improved including internet based life challenges and crusades.
Digital Marketing
As commented by Valos, Mavondo and Nyadzayo (2019), digital marketing has been an
act of selling and promoting products and services by leveraging online marketing tools
including social media marketing. Digital marketing has been different from traditional
marketing. Digital marketing refers to different techniques that can be implemented over the
internet. Online networking has been helping making organizations progressively
straightforward. Clients search for acquiring things from organizations which have built up
believability and straightforward in promoting efforts. Clients have been changing their
conclusions dependent available interest. In this manner, internet based life can be used to
comprehend change in the interest of clients. As remarked by Yawised and O’Donohue (2019),
web based life showcasing (SMM) has been a type of web advertising which utilizes long range
informal communication sites as a promoting device. The point of SMM needs to make in which
clients need to share their informal community for helping association for expanding brand
presentation and reach to client. SMM is the strategy of coming to clients and getting traffic with
the assistance of web based life including Twitter, Facebook and LinkedIn. Web-based social
networking promoting has become a major thing for miniaturized scale and independent
company. It has been a method for picking up abilities for picking up Twitter adherents and use

those devotees for showcasing. Internet based life promoting is identified with free web based
life devices for observing on the web notoriety (Yao et al. 2019). Web based life has become a
device for promoting items and administrations favored by SMEs in the market. Web-based
social networking has helped in expanding correspondence among people from everywhere
throughout the world. It has gotten practical for clients to associate with the organization and
different clients effectively. SMEs can without much of a stretch post commercials identified
with their new or existing items and administrations over the web. Web advancement has made a
unimaginable impact among business relationship in the market. It has shown various impacts in
the presentation of business relationship in the market. Its use has helped in improving the
display of private endeavor attempts in the market. Web based life has been getting its
omnipresence in controlling errands in the SMEs in the market. Web based life has helped in
giving a couple open entryways in the market fir the little and medium endeavors (Ainin et al.
2015). Diverse new organizations have had the choice to set up their business in the market with
the help of online life exhibiting and examination.
Social Media Analytics
As commented by Wang, Pauleen and Zhang (2016), Social media analytics deals with
extracting hidden and unhidden insights of semi structured and Unstructured data from social
media. Social media analytics helps in understanding various factors of social media including
insights, reach and impressions of unstructured data. Web innovation has made an incredible
blast among business associations in the market. It has demonstrated different effects in the
exhibition of business associations in the market. Its utilization has helped in improving the
exhibition of private venture endeavors in the market. Internet based life has been picking up its
ubiquity in controlling tasks in the SMEs in the market. Internet based life has helped in giving a

few; open doors in the market fir the little and medium ventures. Different new businesses have
had the option to set up their business in the market with the assistance of web based life
showcasing and investigation. The utilization of online life has helped in giving better use of the
web and coming to up to countless individuals in the market. This examination has concentrated
on the effect of web-based social networking in execution of SMEs in the market. This
exploration has helped in understanding the degree of web based life influence the presentation
of SMEs in the market. This exploration has utilized past investigations dependent on the effect
of web based life in the SMEs in the market (Quinton and Wilson 2016). The potential use of
web based life in business have been considered from past investigations dependent on the
exploration subject has been broke down. The idea of advanced promoting in the SMEs have
been referenced in the examination which will help in understanding the impact of online life on
the business execution of SMEs in the market. Various types of web-based social networking
advertising have been given in the exploration that will help in understanding the effect of online
life promoting on SMEs in the market. An examination of effect of various internet based life
stages have been given in this exploration.
Social Media Marketing
As commented by Tajudeen, Jaafar and Ainin (2018), social media marketing (SMM) has
been a form of internet marketing which uses social networking websites as a marketing tool.
The aim of SMM needs to create content in which users need to share their social network for
helping organization for increasing brand exposure and reach to customer. SMM is the procedure
of reaching to customers and getting traffic with the help of social media including Twitter,
Facebook and LinkedIn. Social media marketing has become a big thing for micro and small
business. It has been a procedure for gaining skills for gaining Twitter followers and utilize those

followers for marketing. Social media marketing is related to free social media tools for
monitoring online reputation. Social media has become a tool for marketing products and
services preferred by SMEs in the market (Lodhia and Stone 2017). Social media has helped in
increasing communication among individuals from all over the world. It has become feasible for
users to connect with the company and other customers easily. SMEs can easily post
advertisements related to their new or existing products and services over the internet.
Comparison Table
Factors Facebook Twitter WhatsApp LinkedIn YouTube
Target Reach 2.45 billion
active users
330 million
active users
1.5 billion
active users
303
million
2 Billion
active users
Enjoyment Very High Medium High Medium Very High
User-
generated
content
Maximum Maximum Low Medium Maximum
Ease of Use Very high Medium High Low Very High
Usefulness Very high Medium Low Very
High
Very High
Conclusion
The usage of online life has helped in giving better utilization of the web and coming to
up to incalculable people in the market. This assessment has focused on the impact of online
long range informal communication in execution of SMEs in the market. This investigation has