The share of internet advertising in comparison to total advertising spend among Indian companies has grown from 1.3 per cent to 2.9 per cent.
Nearly 66 per cent of internet users globally visit social networks and blogs. The time spent on social networking sites is growing at over three times the rate of overall internet growth.
Social media primarily constitutes social networking and bookmarking platforms, blogging platforms, content applications, social gaming and social connectivity.
Indian companies currently using social media include Infosys, TCS, Frito-Lay, Dell, Naukri and HLL.
The main advantages of social media are high brand awareness (through internet advertising, regular updates about the product/event), and company-consumer interaction (by taking live feedback on products for improvement and development).
Some of the challenges of social media advertising are management resistance, lack of knowledge and technical complexity.