Since social media marketing first came to be, strategists and markets have been getting smarter and more careful with the way they go about collecting information and distributing advertisements. With the presence of data collecting companies, there is no longer a need to target specific audiences. This can be seen as a large ethical gray area. For many users, this is a breach of privacy, but there are no laws that prevent these companies from using the information provided on their websites. Companies like Equifax, Inc., TransUnion Corp, and LexisNexis Group thrive on collecting and sharing personal information of social media users. In 2012, Facebook purchased information from 70 million households from a third party company called Datalogix. Facebook later revealed that they purchased the information in order to create a more efficient advertising service.
Often the line between pay per click advertising and paid inclusion is debatable. Some have lobbied for any paid listings to be labeled as an advertisement, while defenders insist they are not actually ads since the webmasters do not control the content of the listing, its ranking, or even whether it is shown to any users. Another advantage of paid inclusion is that it allows site owners to specify particular schedules for crawling pages. In the general case, one has no control as to when their page will be crawled or added to a search engine index. Paid inclusion proves to be particularly useful for cases where pages are dynamically generated and frequently modified.
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?]
Another way search engine marketing is managed is by contextual advertising. Here marketers place ads on other sites or portals that carry information relevant to their products so that the ads jump into the circle of vision of browsers who are seeking information from those sites. A successful SEM plan is the approach to capture the relationships amongst information searchers, businesses, and search engines. Search engines were not important to some industries in the past, but over the past years the use of search engines for accessing information has become vital to increase business opportunities. The use of SEM strategic tools for businesses such as tourism can attract potential consumers to view their products, but it could also pose various challenges. These challenges could be the competition that companies face amongst their industry and other sources of information that could draw the attention of online consumers. To assist the combat of challenges, the main objective for businesses applying SEM is to improve and maintain their ranking as high as possible on SERPs so that they can gain visibility. Therefore, search engines are adjusting and developing algorithms and the shifting criteria by which web pages are ranked sequentially to combat against search engine misuse and spamming, and to supply the most relevant information to searchers. This could enhance the relationship amongst information searchers, businesses, and search engines by understanding the strategies of marketing to attract business.
In early 2012, Nike introduced its Make It Count social media campaign. The campaign kickoff began YouTubers Casey Neistat and Max Joseph launching a YouTube video, where they traveled 34,000 miles to visit 16 cities in 13 countries. They promoted the #makeitcount hashtag, which millions of consumers shared via Twitter and Instagram by uploading photos and sending tweets. The #MakeItCount YouTube video went viral and Nike saw an 18% increase in profit in 2012, the year this product was released.
Social Media for Content Promotion — Social media marketing is a perfect channel for sharing your best site and blog content with readers. Once you build a loyal following on social media, you'll be able to post all your new content and make sure your readers can find new stuff right away. Plus, great blog content will help you build more followers. It's a surprising way that content marketing and social media marketing benefit each other.
Facebook and LinkedIn are leading social media platforms where users can hyper-target their ads. Hypertargeting not only uses public profile information but also information users submit but hide from others. There are several examples of firms initiating some form of online dialog with the public to foster relations with customers. According to Constantinides, Lorenzo and Gómez Borja (2008) "Business executives like Jonathan Swartz, President and CEO of Sun Microsystems, Steve Jobs CEO of Apple Computers, and McDonalds Vice President Bob Langert post regularly in their CEO blogs, encouraging customers to interact and freely express their feelings, ideas, suggestions, or remarks about their postings, the company or its products". Using customer influencers (for example popular bloggers) can be a very efficient and cost-effective method to launch new products or services Among the political leaders in office, Prime Minister Narendra Modi has the highest number of followers at 40 million, and President Donald Trump ranks second with 25 million followers. Modi employed social media platforms to circumvent traditional media channels to reach out to the young and urban population of India which is estimated to be 200 million.