Mariyam Ismailova | 12.10.2025
The Impact of Social Media on Modern Businesses
Social media has become essential for businesses of all sizes. Platforms like Instagram, TikTok, Facebook, and LinkedIn allow consumers to directly communicate with businesses, enabling real time feedback, engagement and interaction. Businesses use social media to identify target audience, create engaging content, and improve service to strengthen customer relationships and loyalty. Most of the modern businesses use social media, which increases brand awareness, reputation, and influences consumers. Also, social media presents a lot of valuable data and information, helping firms to make strategic decisions and regularly improve their marketing and branding skills.
Although social media is seen as a modern tool, it in fact has roots in the early days of mass media. Back then, businesses used music, storytelling, and interactive characters to make the brand popular. For example the popular 1972 Alka-Seltzer’s commercial “I can’t believe I ate the whole thing”, and the 1965 “Frito Bandito” commercial became popular because they entertained the audience and advertised their product. This was a good advertisement because media options were limited, few TV shows, movie theatres, and magazines. These media options decided what people watched and read. But as technology grew, audiences had an option to skip ads, resulting in brands not being able to rely on just buying advertisements. So they began sponsoring sports events, and TV shows to stay visible. For example, BMW was one of the first companies to create a short film, soon other brands followed, hiring Hollywood actors and directors. This was a start of the rise of “branded content”
Influencers also play an important role in the modern business world. Collaborations with popular authentic influencers helps brands to understand the audience, build trust and create new content. When influencers create new, engaging content that goes well with the brand’s values, it strengthens the brand, consumer loyalty and increases sales. For example Rihanna’s Fenty beauty. It was launched in 2017, offers 40 foundation shades, which shows that it focuses on diversity. Rihanna's own online life, along with the influencers help the brand to connect with people worldwide. The company also collaborates globally - such as the partnership with the 2024 Paris Olympic and Paralympic Games. This highlights how authenticity, partnership and comprehensive branding can create engagement and long term impact.
However, social media crises can occur. Social media crisis occurs when negative content about a brand spreads online. It can start from a customer complaint and quickly damage reputation, sales, and consumer loyalty. For example Balenciaga's 2022 ad campaign, it featured children holding teddy bears in bondage style outfits.The campaign caused widespread outrage, resulting in losing 100,00 instagram followers, drop in sales, and removal from the lyst index’s top 10 brands. At first, Balenciaga refused to take the responsibility. But, a week later they changed their approach - they accepted the responsibility, which saved their brand and helped to improve later. Crisis management heavily depends on social media listening, which means looking at the complaints or bad reviews to immediately respond/ detect potential issues. By monitoring what people say and write about your business, you can identify the upcoming problems, understand the problems, and adjust the strategies before the crisis hits. The faster the business responds on social media, the higher the chances of protecting reputation and the brand itself.
Although social media is seen as a modern tool, it in fact has roots in the early days of mass media. Back then, businesses used music, storytelling, and interactive characters to make the brand popular. For example the popular 1972 Alka-Seltzer’s commercial “I can’t believe I ate the whole thing”, and the 1965 “Frito Bandito” commercial became popular because they entertained the audience and advertised their product. This was a good advertisement because media options were limited, few TV shows, movie theatres, and magazines. These media options decided what people watched and read. But as technology grew, audiences had an option to skip ads, resulting in brands not being able to rely on just buying advertisements. So they began sponsoring sports events, and TV shows to stay visible. For example, BMW was one of the first companies to create a short film, soon other brands followed, hiring Hollywood actors and directors. This was a start of the rise of “branded content”
Influencers also play an important role in the modern business world. Collaborations with popular authentic influencers helps brands to understand the audience, build trust and create new content. When influencers create new, engaging content that goes well with the brand’s values, it strengthens the brand, consumer loyalty and increases sales. For example Rihanna’s Fenty beauty. It was launched in 2017, offers 40 foundation shades, which shows that it focuses on diversity. Rihanna's own online life, along with the influencers help the brand to connect with people worldwide. The company also collaborates globally - such as the partnership with the 2024 Paris Olympic and Paralympic Games. This highlights how authenticity, partnership and comprehensive branding can create engagement and long term impact.
However, social media crises can occur. Social media crisis occurs when negative content about a brand spreads online. It can start from a customer complaint and quickly damage reputation, sales, and consumer loyalty. For example Balenciaga's 2022 ad campaign, it featured children holding teddy bears in bondage style outfits.The campaign caused widespread outrage, resulting in losing 100,00 instagram followers, drop in sales, and removal from the lyst index’s top 10 brands. At first, Balenciaga refused to take the responsibility. But, a week later they changed their approach - they accepted the responsibility, which saved their brand and helped to improve later. Crisis management heavily depends on social media listening, which means looking at the complaints or bad reviews to immediately respond/ detect potential issues. By monitoring what people say and write about your business, you can identify the upcoming problems, understand the problems, and adjust the strategies before the crisis hits. The faster the business responds on social media, the higher the chances of protecting reputation and the brand itself.
