Follow, Like, Share: Your Engagement is the Investment

An intriguing ecosystem has emerged in the era of social media, transforming how people earn money and how user engagement is a fortune for platform owners. This is a fascinating digital economy, a hidden mechanism driving the online world. Every click, like, post, retweet, and view makes someone rich, whether the user knows it or not.

In the 2000s, social media platforms like Facebook and Myspace were primary tools for connecting with friends and the world. As consumption and popularity increased, so did the potential for monetisation. This network's vast growth of users represented a goldmine for targeted advertising. The introduction of ad revenue began a lucrative era for social media Gurus.

After that, influencers emerged, and so did the ways of earning. Individuals who amassed a large audience in followers' viewership and engagement had the upper hand in the cake. YouTube and TikTok are the epicenter's of influencers, and it has become a well-paying profession.

An influencer's journey starts by building a substantial following and popularity among people. This is done through engaging content, feeding the consumer the right food, and consistently maintaining an online presence. Once an influencer reaches a certain level of popularity, the brand notices.

Every follower one gets every day is a stepping stone to greatness, while every like and share is a close step to the sky. As the numbers rise, so does the sky, not the limit charge, becoming a reality for a content creator.

Influencers and content creators who have leveraged the numbers do most of the sponsored ads. Brand ambassadors should be brands themselves on social media. The brand's owners pay the influencers to feature their products.

They also have opportunities in affiliate marketing to earn commissions when they drive sales. The firm owners who share a portion of the ad in their content pay these influencers.

Another captivating way that emerged, especially on TikTok, is fan donations and awards. When TikTok users go live, viewers can send virtual gifts, which are purchased with real money.

The gifts convert into 'diamonds,' which, when accumulated enough, can be converted into cash. This means any view a user makes, every click, every post, and every retweet on these influencers adds to their bag.

The more likes, views, and engagement, the more earnings there are. What a transaction!

A substantial number of users of this platform are between 16 and 25 years old. Over one billion young people are active users of TikTok globally.

The U-turn in the game is that while the influencers and content creators earn money, the real winners are the platform owners. The primary source of platform owners is advertising revenue.

Cookies collect vast information about a user's content preferences, enabling them to offer targeted ads that command high revenues.

User data is another valuable commodity. These platforms can sell anonymised data to third parties to improve targeted ads, generating lump-sum revenue.

Lately, most digital platforms have been shifting from free to subscription. The recent one has been Netflix, which is globally known for its different genres of movies.

Netflix got rid of the free plan and moved to a total subscription. People did not stop using the app but subscribed, which means getting someone rich without them sweating.

The relationship between the content creators and platform owners is a mutual covalent bond, but the actual product of the reaction is the user.

Their increased engagement is a huge investment for platform owners and influencers.

Social media monetisation is a testament to the power of digital connectivity and technological advancement.

The question that lingers is, has it ever dawned on users that their tiny engagement is a bigger investment for someone else?