Social Media Marketing: Advantages, Challenges, and Impact

Introduction to Social Media Marketing

Advertising on social media has been growing at an astounding rate. It was estimated that in 2014 there would be more than U.S. $4 billion spent on social media advertising (Goyal, 2014). In 2013, Facebook alone had advertising income of $3.17 billion, with revenues expected to increase exponentially (Marvin, 2013). This growth is accounted for by both the expanding audience — as more and more users adopt social media — and the belief among advertisers that social media offers a great deal of potential to the marketer (Okazaki & Taylor, 2013). In 2014, research indicated that 92% of marketers believed that social media was important to their businesses (Stelzner, 2014). There are many advantages to social media marketing that, when used effectively, can create a great deal of value. However, alongside these advantages there are also some challenges, and in certain situations advertising on social media may be counterproductive.

Why Social Media Marketing Is Effective

Social media marketing can be argued as beneficial because it is believed to be more effective than traditional advertising, positively impacting many elements of the promotional aspect of the 4 P's marketing model. Chaney (2009) argues that traditional advertising is based on an interruption and disruption model, in which the advertisement interrupts the audience's attention and disrupts thought patterns in order to capture interest. Examples include interrupting television or radio programs with advertisements, or disrupting attention paid to driving or reading with print adverts (Chaney, 2009). These interruptions were generally accepted and perceived as a necessary part of many media, helping to fund other content such as television programs, magazines, and newspapers (Chaney, 2009). Nevertheless, the interruption and disruption model can prove problematic, as advertisers must overcome environmental noise and other distractions in order to gain the audience's attention (Chaney, 2009).

The movement toward social media has facilitated a different type of advertising model — one characterized by less interruption and a higher level of integrated, permissive interaction. The advertising that takes place on social media does not interrupt in the same way, because most audience members have already indicated an interest in the company, for example by liking a brand's Facebook page or following them on Twitter (Praise & Guinan, 2008). This gives consumers a much higher level of control over advertising, shifting power to them, and allows them to choose the types of messages they want to see (Diamond, 2010). The process also facilitates a higher level of interaction: consumers are not merely passive viewers of messages but can interact with companies, share their opinions, and actively create content themselves (Moe & Schweidel, 2012; Evans & McKee, 2010).

The engagement of audiences through these interactions increases the value of the messages and content. No longer are they passive viewers — they are involved, which makes messages more memorable and helps create a more meaningful perceived relationship with brands (Moe & Schweidel, 2012). With users creating content, there is also the benefit of more credible marketing messages, since those not directly linked to the company carry a greater potential level of credibility, allowing content to face fewer barriers in terms of belief and acceptance (Moe & Schweidel, 2012). Even the interruption model seen on YouTube empowers users to skip an advertisement after a few seconds, giving them control over what they view (YouTube, 2014).

Conclusion

Social media marketing, on balance, offers significant advantages over traditional advertising models, particularly in terms of engagement, cost, and reach. The shift from an interruption-based model to a permission-based and interactive one empowers consumers and increases the credibility and memorability of marketing messages. Empirical research supports the view that social media can drive real commercial benefits, especially for smaller businesses. However, challenges such as the digital divide, privacy concerns, reputational risk, and difficulties in measuring ROI mean that social media marketing is not universally appropriate or risk-free. Businesses that approach social media marketing strategically, with clear objectives and appropriate resource allocation, are best positioned to realize its potential benefits while managing its inherent risks.