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High Rewards But Risks Involved With Investments In Social Media Companies

Social media, a relatively recent phenomenon has astonishingly become an increasingly important part of any business's marketing and client base development platform. The perception of this form of marketing has shifted drastically as it is no longer viewed as a trendy inclination, but has become a necessity for any business seeking to secure a place in both the traditional and digital marketplace.

Gaining an increasing popularity day by day, this industry is progressing in terms of confidence associated with the growth of the most leading global social media companies. The tech world has experienced scoring high results and stock prices. Interestingly some of the Social Media companies are either doing extremely well or are slowly taking a downward trot. The companies that are facing this sort of downward trend are in need to change their policies and managements, as the market for the technology is in no mood of looking back.

There is continuous inflow of investment in this field, much analyzed by the smart investors. But it still goes to say, that we still cannot deny that the Industry is still relatively new, and thus finding an ideal instrument for ETF investors is still a shaky business. Though there are a variety of options available in the market but only a few are most reliable and appropriate.

The market further demands the B2B companies to invest handsome amounts relating to social media into their companies. For example the commercial organizations have to support a well-managed presence in each of the "big three's" namely Face book, Twitter, and Google+. A traditional website now needs to be supplemented by responsive utilization of the tools the social media offers.

As compared to 2011 the usage has increased significantly where two thirds of the latest adult groups have just recently joined in. The figures have doubled since 2008.

This Industry provides new ways for people to connect providing new ways for people to share, shop and to be able to build a network. This industry continues to expand through the social media company IPO and Social Media ETF helps new companies to gain exposure of the Social Media Industry.

It is seen that according to the Survey in 2011 by Pew Internet users the email and Search Engine usage has increased to a great extent. The increase in the usage of Mobile Phones has also definitely improved the accessibility of the Social Media Content leading to an increase of its usage by 40 %. The increase in the Global Users by three quarters is due to the major global market, blogs and Social Networks.

Face book, LinkedIn and Twitter do sell stocks publicly through IPOs and they have been raising capital by stakes to institutional investors, venture capitalists and wealthy investors.

The importance of social media markets in the B2B Business is that it allows you to connect with your future customers as well as your present customers. It is an excellent source of customer service station. When your customer gains a positive experience from your Social Media Platforms you automatically get a source of retention leading to a growth of the exposure and creating a wide horizon of scope for your business.

Associated with the invest in social media companies, Global X Social Media ETF [SOCL] is aimed at providing investment results corresponding to the price and yield results of the Solactive Social Media Index. SOCL provides the right exposure towards the global social media companies.