A study into how Australian banks use social media

Social Media is a term commonly used to describe a group of individual web based services that have grown beyond the provisioning of the capability to connect, network or blog. The popular social networking services have evolved into a ‘platform’ by incorporating a multitude of functionalities through an array of applications to attract millions of users. This has created a favourable environment for businesses to exploit the benefit of having access to millions of social media users by using it as a business support tool. Studies indicate that social media services are being used by businesses for engaging with the general public, enhancing customer interaction, and for crisis communications. Whilst there are many businesses who have adopted social media, others have either rejected the idea or are still unsure about how to proceed. This paper analyses the functionality of selected social media services in order to explore how Australian banks use such services strategically. It reports findings from a longitudinal study of Australian bank use of four popular social media services: Facebook, MySpace, Twitter, and YouTube.