Social Media Marketing (SMM): What It Is, How It Works, Pros and Cons:
What Is Social Media Marketing (SMM)?
Social media marketing (also known as digital marketing and e-marketing) is the use of social media—the platforms on which users build social networks and share information—to build a company’s brand, increase sales, and drive website traffic. In addition to providing companies with a way to engage with existing customers and reach new ones, SMM has purpose-built data analytics that allows marketers to track the success of their efforts and identify even more ways to engage.
KEY TAKEAWAYS
- Social media marketing uses social media and social networks—like Facebook, X (formerly Twitter), and Instagram—to market products and services, engage with existing customers, and reach new ones.
- The power of social media marketing comes from the unparalleled capacity of social media in three core marketing areas: connection, interaction, and customer data.
- Social media marketing has transformed the way businesses can influence consumer behavior—from promoting content that drives engagement to extracting personal data that makes messaging resonate with users.
- Because social media today is so ubiquitous, marketing techniques using these platforms are extremely important for businesses.
- Social media marketing is often more cost-effective with great exposure, though it requires ongoing maintenance and might have unintended negative feedback consequences.
Why Is Social Media Marketing (SMM) So Powerful?
The power of SMM is driven by the unparalleled capacity of social media in three core marketing areas: connection, interaction, and customer data.
Connection
Not only does social media enable businesses to connect with customers in previously impossible ways, but there is also an extraordinary range of avenues to connect with target audiences—from content platforms (like YouTube) and social sites (like Facebook) to microblogging services (like X).
The dynamic nature of the interaction on social media—whether direct communication or passive liking—enables businesses to leverage free advertising opportunities from eWOM (electronic word-of-mouth) recommendations between existing and potential customers. Not only is the positive contagion effect from eWOM a valuable driver of consumer decisions, but the fact that these interactions happen on the social network makes them measurable. For example, businesses can measure their social equity—a term for the return on investment (ROI) from their social media marketing campaigns.
Interaction
Customer Data
A well-designed social media marketing plan delivers another invaluable resource to boost marketing outcomes: customer data. Rather than being overwhelmed by the 3Vs of big data (volume, variety, and velocity), SMM tools have the capacity not only to extract customer data but also to turn this gold into actionable market analysis—or even to use the data to crowdsource new strategies.
ADVANTAGES
The introduction of social media marketing has introduced a new suite of benefits. Social media platforms provide a powerful channel for reaching and engaging with a large audience, which can help increase brand awareness and recognition.
- Engaging with customers through social media channels can help build stronger relationships and foster customer loyalty. It’s often a less expensive option than traditional advertising methods, making it more appealing for smaller or start-up businesses.
- The nature of social media marketing also has plenty of benefits. Sharing links to your website or blog on social media can help drive more traffic to your website and increase the likelihood of conversions. In addition, social media provides a way to gather feedback from customers in real time, allowing for instant interaction and simplicity in communication.Social media marketing also has the benefit of being broad but also targeted.
- Social media marketing also has the benefit of being broad but also targeted. Social media can help businesses reach a wider audience and increase engagement through shares, likes, comments, and other forms of interaction. This is especially true considering many customers forward content to friends and family who might be non-customers. On the other hand, social media platforms offer a range of targeting options, meaning companies can pinpoint specific demographics, interests, and behaviors and deliver personalized content to those audiences.
DISADVANTAGES
- Though riddled with benefits, there are some downsides and complications to social media marketing. Building a strong social media presence takes time and effort, and business owners must often consistently engage and create content.
- Effective social media marketing requires a deep understanding of the various platforms and the ability to create engaging content, analyze data, and make data-driven decisions. Each platform is often specialized and requires its own understanding. In addition, social media platforms are constantly changing their algorithms and policies which can make it difficult to predict and maintain success.
- Though social media makes it easy to communicate with customers, it also provides a platform for customers to voice their complaints and grievances publicly. This may have the unintended consequence of creating a public forum, which can damage a company’s reputation if not handled properly.
- Last, it may be difficult to clearly quantify the return on social media marketing. Measuring the effectiveness and ROI of social media marketing can be challenging as it often involves tracking multiple metrics, analyzing complex data sets, and making assumptions about why consumers may have acted in various ways.
May help companies enhance brand recognition easily
Offers companies more cost-effective solutions with great exposure
May be leveraged to increase website traffic and real-time feedback
May be leveraged for targeted or specific engagements.
May be time-consuming to set up and maintain
May be unpredictable, as different platforms may change algoriths
May result in negative feedback displayed in a very public fashion
May be difficult to fully understand the true ROI