In an ever changing world, it's becoming more and more apparent that social media is extremely important for businesses both large and small. While outbound marketing techniques were once effective, they are now giving way to inbound techniques that appeal to a more precise demographic. At the forefront of inbound techniques is the social media branch of online marketing. With that being said, let's discuss why this form of networking is so integral to the success of businesses.

First of all, it should be known that traditional advertising through TV commercials and similar outbound mediums have become increasingly ineffective. When companies try to promote a small niche product or service to a mass audience, it often ends up becoming intrusive and annoying. For example, a company who sells beauty products might advertise with a TV commercial where only a small percentage of viewers are interested, while a large percentage may have no interest whatsoever.

Consequently, money is being wasted on ineffective advertising that is essentially cramming information down the throats of uninterested consumers. In terms of online marketing, email campaigns have also lost momentum. Sending out bulk emails only results in 4% actually being opened and is simply a nuisance for many people.

On the other hand, social networking is significantly more effective for a few reasons. One of the biggest benefits is that nearly any business can utilize this medium for branding purposes. For example, any business can create a page on websites like Facebook and Twitter. When this happens, it helps the business achieve a unique identity with customers which inevitably results in more credibility. This is essential because branding can help a business establish and sense of trust with its target audience. As a result, this makes it easier to acquire new customers and build long term relationships with loyal customers.

Another reason why social media is important is because large numbers of people use it on a daily basis. While people often disregard TV commercials and send emails to their spam folder, many naturally want to connect through networking. In fact, the rate of people using this medium is climbing above 80%. Basically, these individuals can pick and choose which businesses they follow, develop a sense of trust and are more open to advertisements from those businesses. Consequently, deeper relationships can be formed with businesses and consumers, and the odds of long term success are increased.