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Economics Project

The social media market in South Africa is oligopolistic, dominated by a few major platforms like WhatsApp, Facebook, TikTok, and Instagram, which influence user behavior and limit competition. Businesses leverage social media for targeted ads, influencer marketing, and user-generated content, which can enhance sales but also poses risks such as false information and privacy concerns for consumers. The economic impacts include increased online shopping and job creation, but also challenges like cybersecurity risks and unequal access to technology.

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87 views9 pages

Economics Project

The social media market in South Africa is oligopolistic, dominated by a few major platforms like WhatsApp, Facebook, TikTok, and Instagram, which influence user behavior and limit competition. Businesses leverage social media for targeted ads, influencer marketing, and user-generated content, which can enhance sales but also poses risks such as false information and privacy concerns for consumers. The economic impacts include increased online shopping and job creation, but also challenges like cybersecurity risks and unequal access to technology.

Uploaded by

GantsoMatlaila
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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BOIKGANTSHO

PAPO

ECONOMICS

GRADE 12
1. IDENTIFY THE MARKET STRUCTURE FOR SOCIAL MEDIA IN
SOUTH AFRICA................................................................................................................................. 1

TABLE OF
CONTENTS
4.How Businesses Use Social Media Marketing ........................................................................... 2
BIBLIOGRAPHY ................................................................................................................................. 5
1.Identify the market structure for social
media in south Africa

The market structure for social media platforms in South Africa can be classified as
oligopolistic. This means that a few dominant players control most of the market,
influencing competition and consumer behavior.

2.List examples of social media platforms and the percentage users


(market capitalization)
Social Media Platform Estimated Percentage Estimated number of users
Usage

WhatsApp 93.8% Approximately 25 million

Facebook 88.6% Approximately 23.5 million

TikTok 76.9% Approximately 20.5 million

Instagram 71.4% Approximately 19 million

3.Describe the characteristics social media in the context of your answer in identifying
the market structure.

The market structure for social media in South Africa is oligopolistic

Few Big Players


~ The social media market in South Africa is controlled by a few big
platforms like WhatsApp, Facebook, TikTok and Instagram. These
platforms have most of the users and a lot of influence.
~ This means there isn’t much room for new platforms to join and
compete.
Network Effects
~ When more people use a platform, it becomes more valuable. For
example, people join platforms where their friends are already active.
~ This makes it hard for new platforms to start because they don’t have
many users at first.
User-Generated Content
~ Users create most of the content on social media, like posts and
videos. This keeps people engaged and active on the platforms.
~ However, it can be challenging to manage bad or misleading content.

~ Impact: This makes shopping easier and helps businesses sell


more online.
2. Authentic Content
~ Brands create content that feels real and connects with South
African audiences.
~ Case Study: Nando’s uses humor and local language in their posts,
making them popular and shared widely.
~ Impact: This helps people feel connected to the brand.

4.HowBusinesses Use Social Media


Marketing
Targeted Ads

Companies use social media to show ads to specific groups of people based on
their interests or where they live.

~ Example: A clothing store might show ads to people who like


fashion on Facebook.
~ Impact: This helps businesses reach the right people and save
money.
Influencer Marketing
~ Businesses partner with popular people on social media to promote
their products.
~ Case Study: A beauty brand might work with a popular Instagram
user to show off their makeup.
~ Impact: This helps build trust and gets more people to buy the
products.
User-Generated Content
~ Companies encourage customers to share photos or reviews of
their products on social media.
~ Case Study: A fashion store might ask customers to post pictures
of themselves wearing their clothes.
~ Impact: This makes other people trust the brand more and want to
buy from them.
Shopping on Social Media
~ Some platforms let you buy things directly from posts or ads.
~ Case Study: Small businesses use Instagram to sell handmade
goods without needing a physical store.

EVALUATE THE IMPLICATIONS OF


5.
USING SOCIAL MEDIA MARKETING FOR
CONSUMERS IN SOUTH AFRICA.

Bad Impacts
False Information

Fake news or misleading posts about products can confuse consumers


and lead to bad decisions.

Example: A viral post claiming false benefits of a product can harm trust in
brands.

Impact: People may struggle to know which information is true.

Privacy Concerns
Social media collects personal data to show targeted ads, which makes
some people worry about their privacy.

Impact: Consumers may feel unsafe sharing their information online.

Unequal Access
Not everyone in South Africa has access to social media because of
expensive data costs or poor internet in rural areas.

Impact: This creates unfair opportunities, as urban users benefit more


from social media marketing than rural users.

Impulse Buying
Social media makes it easy for people to buy things quickly without
thinking carefully, leading to overspending or regret later.
Impact: While convenient, this can cause financial problems for some
consumers.

Digital Divide
Many South Africans cannot afford data or devices to access social media
regularly. This creates inequality, as only wealthier or urban consumers
benefit from social media marketing.

Impact: Rural and low-income consumers are excluded from online


opportunities, widening the gap between different groups.

2. Addiction and Overuse


Social media platforms are designed to keep users engaged for long
periods, leading to overuse and addiction.

Impact: Consumers may spend too much time scrolling through ads and
content, which can negatively affect mental health and productivity.

6. S U M M A R I Z E
YOUR FINDINGS AND
DRAW CONCLUSIONS OF THE IMPACT OF
SOCIAL MEDIA ON THE SOUTH AFRICAN
ECONOMY.

Good Economic Impacts

Boosts Online Shopping


Social media helps businesses sell more online, with e-commerce growing
to R71 billion in 2023. Platforms like Instagram and Facebook make it
easy for people to shop from home.

Economic Impact: This adds to the country's GDP and helps small
businesses grow.

Creates Jobs
Social media creates jobs in areas like marketing and content creation.
Entrepreneurs use these platforms to start new businesses.

Economic Impact: More jobs mean more people have money to spend,
helping the economy.
Bad Economic Impacts

False Information
Fake news on social media can harm businesses and reduce trust among
consumers.

Economic Impact: This can lead to financial losses for affected


businesses.

Cybersecurity Risks
More online activity increases the risk of cyberattacks, which can cost
businesses money and damage their reputations.

Economic Impact: Adds costs for protecting against these threats.

BIBLIOGRAPHY

https://www.studocu.com/en-
za/messages/question/12083318/impact-of-social-media-
on-the-south-african-economy
https://www.trade.gov/country-commercial-guides/south-
africa-digital-economy
https://www.meltwater.com/en/blog/2025-social-media-
statistics-south-africa
https://www.meltwater.com/en/blog/social-media-statistics-
south-africa
https://www.tandfonline.com/doi/full/10.1080/0376835X.201
6.1204228
https://www.statista.com/topics/9923/social-media-in-
south-africa/
vcvvbvvf

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