Social Media Advertising Risks and Rewards

Summary

Social media marketing is an extremely unique and effective form of viral marketing when employed strategically. Consumers are more likely to trust positive information about a company’s services and products, and business in general when it is communicated between a trusted community of people who are connected to one another, instead of from an unknown and unfamiliar third party. This form of marketing is considered “earned media,” (as opposed to “paid media”) and is driven by word of mouth, not dollars and cents. The rising use of social media by companies and their employees, however, has created a host of risks and concerns. This practice note explores both the benefits and risks associated with the commercial exploitation of social media.