Social Media, Peer Production, and Leveraging the Crowd (CH.11)

Web 2.0 OR Social Media

Internet services that foster collaboration and information sharing

peer production

Collaboration between users to create content, products, and services.

collaborative consumption

Participants share access to products and services, rather than having ownership.

Blogs

Online journal entries are usually made in reverse chronological order. Blogs typically provide comment mechanisms where users can post feedback for authors and readers.

owned media

Any form of media that a company or organization directly controls and operates. Ex: Jolibee has its own YouTube Channel OR BlackRock has its own LinkedIn page

paid media

When a company or organization uses a media outlet to promote themselves through ads

earned media

Free publicity you get when customers or others talk positively about your brand on their own. This includes things like when someone tweets about how much they love your product, shares your content on Facebook, or pins your stuff on Pinterest.

inbound marketing

Refers to leveraging online channels to draw consumers to the firm with compelling content rather than conventional forms of promotion such as advertising, e-mail marketing, traditional mailings, and sales calls.

Inbound Marketing Examples

The AI platform creates its own Instagram account and posts genuinely helpful study tips, productivity hacks, and educational content. Students find this content when searching for study help, follow the account because it's useful, and then discover the AI platform naturally through that content.

Wiki

A website that can be modified by anyone, from directly within a Web browser (provided that the user is granted edit access).

roll back

Ability to revert a wiki page to a prior version.

application programming interfaces (APIs)

Programming hooks, or guidelines published by firms that tell other programs how to get a service to perform a task such as send or receive data.

free rider problem

When others take advantage of a user or service without providing any sort of reciprocal benefit.

wisdom of crowds

Idea that a group of individuals, often consisting of untrained amateurs, will collectively have more insight than a single or small group of trained professionals.

crowdsourcing

Getting the public to do work that would traditionally be done by paid employees.

Example of crowdsourcing

• Old way: A company hires a graphic designer (employee) to create their new logo

• Crowdsourcing: The company posts online saying "We need a logo - anyone can submit designs, and we'll pick the best one and pay the winner"

prediction market

Polling a diverse crowd and aggregating opinions in order to form a forecast of an eventual outcome.

What 2 actions violates the FTC rules and can result in prosecution?

Sock Puppeting and Adtroturfing

sock puppet

Fake online persona created to promote a particular point of view, product, or individual.

astroturfing

When a firm or party creates fake grassroots support by bribing people to give their brand a positive image. Ex: Fake accounts, paying ppl to write positive reviews, etc.