More and more businesses have been realizing the value of having a presence on social media and this is the reason why number of companies having a presence on social media has increased drastically in the last 5 years.
One of the main benefits of social media is that it has allowed businesses to reach customers at a very low cost and now businesses do not need high marketing budget to market their offerings to customers in different geographic locations as they can easily interact and promote their offerings to the people living in different regions of the world. For instance, there are many small businesses that are promoting their products and services to people across the world, and this has allowed these small businesses to cater the needs of people in different regions and thus they are no more limited to the particular city or state in which they are operating. This is beneficial for customers as well as businesses.
Social media has helped marketers a lot because they can easily segment population. With social media, businesses can create different segments according to age group, ethnic background, geographical locations, religion, and gender and thus market each segment can be targeting accordingly to get better returns on the investment. Since social networking websites allow organizations to directly interact with their customers and in this way, organizations ask the feedback of the customers to improve their existing products and services.
Social media marketing costs much less and it can help businesses not only create awareness but also strengthen their relationships with the customers, increase their sales and improve their brand image. Thus, profitability can be increased if businesses use social media as one of their major marketing tools.