Perception Is Reality

Marginal Utility of Social Media

Posted on: April 9, 2010

In economics there is a concept called diminishing marginal utility. Essentially, this concept states that as you utilize more of a good or commodity, the satisfaction or pleasure you derive from it decreases between each consumption.

So, if I was to eat one slice of pizza, followed by another slice, followed by a third slice, the utility I would derive from subsequent consumption would decrease.

I am beginning to entertain the idea, that social media has diminishing marginal utility.

Please don’t hate: after the utopia concept of the wonders that social media can do, people like Malcolm Gladwell and PR expert Geoff Livingston have moved away from social media.

It seems that the more eggs you put your basket in, the more baskets you have.
but the more emptier they begin to look. The more social media you utilize, the less control you have over it. There is too much decentralization and you cant always utilize them efficiently, and logistically speaking, it becomes too much of a hassle.

the result? poor social media policy.

The next time you hear, read, and subsequently discuss social media in terms of PR, think about how much utility can be derived, before it starts diminishing.

What do you think?

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About the Author…

Born in Karachi, Pakistan in an Adventist hospital, I grew up in a city where on one side I experienced poverty and oppression, while on the other I had the good fortune of Tabish Bhimani being a member of an upper middle-class business family...more...

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