Social Media

AAA

DEFINITION of 'Social Media'

Internet-based software and interfaces that allow individuals to interact with one another, exchanging details about their lives such as biographical data, professional information, personal photos and up-to-the-minute thoughts.


Social media originated as strictly a personal tool that people used to interact with friends and family but were later adopted by businesses that wanted to take advantage of a popular new communication method to reach out to customers, for example, by informing them of sales and offering them special coupons.

INVESTOPEDIA EXPLAINS 'Social Media'

Through social media, anyone with internet access can interact with millions of people online. It is not necessary to be a journalist, a politician, a CEO or to hold any other position that was traditionally necessary to be able to disseminate one's thoughts or ideas to a wide audience.

RELATED TERMS
  1. Customer To Customer (C2C)

    A business model that facilitates an environment where customers ...
  2. Electronic Commerce - ecommerce

    A type of business model, or segment of a larger business model, ...
  3. Warm Calling

    The solicitation of a potential customer with whom a sales representative ...
  4. Networking

    A process that fosters the exchange of information and ideas ...
  5. Social Identity

    A company's image as derived from its relationships. An organization's ...
  6. Social Commerce

    A type of electronic commerce that employs social media to promote ...
Related Articles
  1. Investing Basics

    Who are Facebook's (FB) main competitors?

    Explore the different social media networking sites that are starting to compete with Facebook.
  2. Investing

    How does Facebook (FB) make money?

    Examine third quarter 2014 revenue data for Facebook and increases in advertising, mobile advertising, daily active users and mobile daily active users.
  3. Entrepreneurship

    Social Finance Careers: Creating A Better World

    A financial career can be used to do more than just bring in profits. Find out how to get a career with a more social objective.
  4. Professionals

    How To Target Ideal Customers

    Expand your definition of a lucrative client and uncover a new realm of possibilities.
  5. Options & Futures

    Extreme Socially Responsible Investing

    Make your money work for you without putting it into ventures that don't support your values.
  6. Investing

    Is there a difference between socially responsible investing (SRI) and green investing?

    There isn't a huge difference between socially responsible investing (SRI) and green investing; green investing is actually a form of socially responsible investing. Both of these terms refer ...
  7. Entrepreneurship

    10 Breakout Ideas For Small Businesses

    If your business has hit a wall, we've got the answer to break through and increase sales and earnings.
  8. Entrepreneurship

    9 Tips For Growing A Successful Business

    Give your business what it needs to thrive and it will reward you for years to come.
  9. Options & Futures

    Socially Responsible Investing Vs. Sin Stocks

    Can your principles make you richer or poorer? Find out if it pays pick your portfolio based on ethics.
  10. Professionals

    Master Limited Partnership (MLP)

    A master limited partnership, also referred to as an MLP, is a publicly traded partnership, where the limited partnership interests are traded much like shares in a corporation.

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center