Social networking websites allow individuals, businesses and other organizations to interact with one another and build relationships and communities online. When companies join these social channels, consumers can interact with them directly. That interaction can be more personal to users than traditional methods of outbound marketing and advertising. Social networking sites act as word of mouth or more precisely, e-word of mouth. The Internet's ability to reach billions across the globe has given online word of mouth a powerful voice and far reach. The ability to rapidly change buying patterns and product or service acquisition and activity to a growing number of consumers is defined as an influence network. Social networking sites and blogs allow followers to "retweet" or "repost" comments made by others about a product being promoted, which occurs quite frequently on some social media sites. By repeating the message, the user's connections are able to see the message, therefore reaching more people. Because the information about the product is being put out there and is getting repeated, more traffic is brought to the product/company.
The Internet and social networking leaks are one of the issues facing traditional advertising. Video and print ads are often leaked to the world via the Internet earlier than they are scheduled to premiere. Social networking sites allow those leaks to go viral, and be seen by many users more quickly. The time difference is also a problem facing traditional advertisers. When social events occur and are broadcast on television, there is often a time delay between airings on the east coast and west coast of the United States. Social networking sites have become a hub of comment and interaction concerning the event. This allows individuals watching the event on the west coast (time-delayed) to know the outcome before it airs. The 2011 Grammy Awards highlighted this problem. Viewers on the west coast learned who won different awards based on comments made on social networking sites by individuals watching live on the east coast. Since viewers knew who won already, many tuned out and ratings were lower. All the advertisement and promotion put into the event was lost because viewers didn't have a reason to watch.[according to whom?]
In the social sphere, things change fast. New networks emerge, while others go through significant demographic shifts. Your business will go through periods of change as well. All of this means that your social media strategy should be a living document that you look at regularly and adjust as needed. Refer to it often to keep you on track, but don’t be afraid to make changes so that it better reflects new goals, tools, or plans.
Social media marketing involves the use of social networks, consumer's online brand-related activities (COBRA) and electronic word of mouth (eWOM) to successfully advertise online. Social networks such as Facebook and Twitter provide advertisers with information about the likes and dislikes of their consumers. This technique is crucial, as it provides the businesses with a "target audience". With social networks, information relevant to the user's likes is available to businesses; who then advertise accordingly. Activities such as uploading a picture of your "new Converse sneakers to Facebook" is an example of a COBRA. Electronic recommendations and appraisals are a convenient manner to have a product promoted via "consumer-to-consumer interactions. An example of eWOM would be an online hotel review; the hotel company can have two possible outcomes based on their service. A good service would result in a positive review which gets the hotel free advertising via social media. However, a poor service will result in a negative consumer review which can potentially harm the company's reputation.