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Social media can be a useful source of market information and a way to hear customer perspectives. Blogs, content communities, and forums are platforms where individuals share their reviews and recommendations of brands, products, and services. Businesses are able to tap and analyze the customer voices and feedback generated in social media for marketing purposes;[15] in this sense the social media is a relatively inexpensive source of market intelligence which can be used by marketers and managers to track and respond to consumer-identified problems and detect market opportunities. For example, the Internet erupted with videos and pictures of iPhone 6 "bend test" which showed that the coveted phone could be bent by hand pressure. The so-called "bend gate" controversy[16] created confusion amongst customers who had waited months for the launch of the latest rendition of the iPhone. However, Apple promptly issued a statement saying that the problem was extremely rare and that the company had taken several steps to make the mobile device's case stronger and robust. Unlike traditional market research methods such as surveys, focus groups, and data mining which are time-consuming and costly, and which take weeks or even months to analyze, marketers can use social media to obtain 'live' or "real time" information about consumer behavior and viewpoints on a company's brand or products. This can be useful in the highly dynamic, competitive, fast-paced and global marketplace of the 2010s.

Social media marketing is a powerful way for businesses of all sizes to reach prospects and customers. Your customers are already interacting with brands through social media, and if you're not speaking directly to your audience through social platforms like Facebook, Twitter, Instagram, and Pinterest, you're missing out! Great marketing on social media can bring remarkable success to your business, creating devoted brand advocates and even driving leads and sales.


Social media marketing involves the use of social networks, consumer's online brand-related activities (COBRA) and electronic word of mouth (eWOM)[75][76] to successfully advertise online. Social networks such as Facebook and Twitter provide advertisers with information about the likes and dislikes of their consumers.[61] This technique is crucial, as it provides the businesses with a "target audience".[61] 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[75]" is an example of a COBRA.[75][76] Electronic recommendations and appraisals are a convenient manner to have a product promoted via "consumer-to-consumer interactions.[75] An example of eWOM would be an online hotel review;[77] 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[78].
Facebook Ads and other social media ad platforms, for example, are pay-per-click platforms that do not fall under the SEM category. Instead of showing your ads to people who are searching for similar content like search ads do, social media sites introduce your product to people who happen to be just browsing through their feeds. These are two very, very different types of online advertising.

Measuring Success with Analytics — You can’t determine the success of your social media marketing strategies without tracking data. Google Analytics can be used as a great social media marketing tool that will help you measure your most triumphant social media marketing techniques, as well as determine which strategies are better off abandoned. Attach tracking tags to your social media marketing campaigns so that you can properly monitor them. And be sure to use the analytics within each social platform for even more insight into which of your social content is performing best with your audience.
However, while bidding $1,000 on every keyword and ranking #1 for every relevant search sounds nice in theory, most businesses have to play a balancing game between ranking higher and paying too much for clicks. After all, if it costs $17.56 to rank in position #1, but you can only afford to pay $5.00 per click, bidding $1,000 on a keyword to guarantee yourself the #1 position would be a great way to bid yourself out of business.
To this end, companies make use of platforms such as Facebook, Twitter, YouTube, and Instagram to reach audiences much wider than through the use of traditional print/TV/radio advertisements alone at a fraction of the cost, as most social networking sites can be used at little or no cost (however, some websites charge companies for premium services). This has changed the ways that companies approach to interact with customers, as a substantial percentage of consumer interactions are now being carried out over online platforms with much higher visibility. Customers can now post reviews of products and services, rate customer service, and ask questions or voice concerns directly to companies through social media platforms. According to Measuring Success, over 80% of consumers use the web to research products and services.[30] Thus social media marketing is also used by businesses in order to build relationships of trust with consumers.[31] To this aim, companies may also hire personnel to specifically handle these social media interactions, who usually report under the title of Online community managers. Handling these interactions in a satisfactory manner can result in an increase of consumer trust. To both this aim and to fix the public's perception of a company, 3 steps are taken in order to address consumer concerns, identifying the extent of the social chatter, engaging the influencers to help, and developing a proportional response.[32]
In May 2014, Instagram had over 200 million users. The user engagement rate of Instagram was 15 times higher than of Facebook and 25 times higher than that of Twitter.[50] According to Scott Galloway, the founder of L2 and a professor of marketing at New York University's Stern School of Business, latest studies estimate that 93% of prestige brands have an active presence on Instagram and include it in their marketing mix.[51] When it comes to brands and businesses, Instagram's goal is to help companies to reach their respective audiences through captivating imagery in a rich, visual environment.[52] Moreover, Instagram provides a platform where user and company can communicate publicly and directly, making itself an ideal platform for companies to connect with their current and potential customers.[53]
The fee structure is both a filter against superfluous submissions and a revenue generator. Typically, the fee covers an annual subscription for one webpage, which will automatically be catalogued on a regular basis. However, some companies are experimenting with non-subscription based fee structures where purchased listings are displayed permanently. A per-click fee may also apply. Each search engine is different. Some sites allow only paid inclusion, although these have had little success. More frequently, many search engines, like Yahoo!,[18] mix paid inclusion (per-page and per-click fee) with results from web crawling. Others, like Google (and as of 2006, Ask.com[19][20]), do not let webmasters pay to be in their search engine listing (advertisements are shown separately and labeled as such).
In some contexts, the term SEM is used exclusively to mean pay per click advertising,[2] particularly in the commercial advertising and marketing communities which have a vested interest in this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as search engine optimization and search retargeting.
More than three billion people in the world are active on the Internet. Over the years, the Internet has continually gained more and more users, jumping from 738 million in 2000 all the way to 3.2 billion in 2015.[9] Roughly 81% of the current population in the United States has some type of social media profile that they engage with frequently.[10] Mobile phone usage is beneficial for social media marketing because of their web browsing capabilities which allow individuals immediate access to social networking sites. Mobile phones have altered the path-to-purchase process by allowing consumers to easily obtain pricing and product information in real time[11]. They have also allowed companies to constantly remind and update their followers. Many companies are now putting QR (Quick Response) codes along with products for individuals to access the company website or online services with their smart phones. Retailers use QR codes to facilitate consumer interaction with brands by linking the code to brand websites, promotions, product information, and any other mobile-enabled content. In addition, Real-time bidding use in the mobile advertising industry is high and rising due to its value for on-the-go web browsing. In 2012, Nexage, a provider of real time bidding in mobile advertising reported a 37% increase in revenue each month. Adfonic, another mobile advertisement publishing platform, reported an increase of 22 billion ad requests that same year.[12]
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