Social media marketing (SMM) is a form of Internet marketing that utilizes social networking websites as a marketing tool. The goal of SMM is to produce content that users will share with their social network to help a company increase brand exposure and broaden customer reach. Social media marketing campaigns usually center around:
- Establishing a social media presence on major platforms
- Creating shareable content and advertorials
- Cultivating customer feedback throughout the campaign through surveys and contests
SMM helps a company get direct feedback from customers (and potential customers) while making the company seem more personable. The interactive parts of social media give customers the opportunity to ask questions or voice complaints and feel they are being heard. This aspect of SMM is called social customer relationship management (social CRM).
SMM became more common with the increased popularity of websites such as Twitter, Facebook, Myspace, LinkedIn, and YouTube. In response, the Federal Trade Commission (FTC) has updated its rules to include SMM. If a company or its advertising agency provides a blogger or other online commenter with free products or other incentives to generate positive buzz for a product, the online comments will be treated legally as endorsements. Both the blogger and the company will be held responsible for ensuring that the incentives are clearly and conspicuously disclosed, and that the blogger’s posts contain no misleading or unsubstantiated statements and otherwise complies with the FTC’s rules concerning unfair or deceptive advertising.