Does Social Media Add Authority to online Businesses?

In a recent article I wrote on Wired, we explored how Social Media may waste electricity[1] and potentially be harmful[2] to the way we socialize and conduct business,
But I wanted to ask the Digital Point community their views on websites[3] that promise to increase your social image (in other words) websites and business that sell youtube views, facebook likes and twitter views.
After a long an intensive study, major university's are publishing findings that show that the credibility of celebrities, large enterprises and even local businesses does in fact have to do with how they appear online in social media (e.g their social presence)
Many companies offer the chance for a small fee, to build your fan base and assist you in building your brand and social identity while you get a chance to test out promotions, content and new materials to these audiences for a fraction of the standard more traditional, 'facebook or good adwords campaigns'

Does your company require or use companies to manage your social influence on sites?

Do you measure your feedback, versus number of likes/followers and the trends that bring new customers to your social media pages?

If so, how?

You cannot buy a real and loyal fanbase, but you can give your new fans confidence and let them feel like they are not so alone in the cheering process, directing your goods and services at target audiences is profitable if they are required to purchase your product as part of their daily lives, luxury and secondary items have a hard sell and often require a better social presence.

[1] http://insights.wired.com/profiles/blogs/does-social-media-waste-electricity?
[2] http://insights.wired.com/profiles/blogs/is-social-media-driving-people-away-from-real-interaction?

 

I don't know if social media adds authority, but it is a great way to get high quality targeted traffic.