The Impact of Social Networks on Business Performance
Digital Marketing (HND) & Commerce (SCHE)
This thesis examines the impact of social networks on business performance, combining theoretical foundations with empirical research. Over the past two decades, social networks have become one of the key forms of digital communication, influencing how individuals connect and how companies design their marketing strategies.
In the business environment, they are used as a tool to increase brand awareness, establish direct communication with consumers, and facilitate access to target groups, while also posing challenges such as the need for strategy, content quality, and performance measurement.
The theoretical part presents the development and characteristics of social networks and their significance for companies. It analyzes different approaches to their use in business, the formulation of digital strategies, and the importance of performance measurement.
Particular attention is given to the link between social networks and business performance, as well as to the role of artificial intelligence, which enables content optimization, process automation, and greater efficiency in digital marketing.
The empirical part is based on a survey among companies of different sizes and sectors. The results show that the vast majority (92 %) use social networks, most often Facebook and Instagram, primarily to increase brand awareness and communicate with customers, and less often to increase sales directly.
Fewer than half of the companies have a clear strategy, while most invest limited time and resources. Success is mainly measured through basic quantitative indicators, less often through direct business measures such as sales or inquiries. Nevertheless, most companies believe that social networks contribute to greater brand awareness and at least partially to improved business results.
The use of artificial intelligence is still in its early stages, but companies recognize its potential, especially in content generation and scheduling.
The research concludes that social networks are an important factor in business performance, although their full effectiveness requires a clear strategy, more comprehensive performance measurement, and stronger integration of modern digital tools.
