Social networking sites such as Facebook, Instagram, Twitter, MySpace etc. have all influenced the buzz of word of mouth marketing. In 1999, Misner said that word-of mouth marketing is, "the world's most effective, yet least understood marketing strategy" (Trusov, Bucklin, & Pauwels, 2009, p. 3). Through the influence of opinion leaders, the increased online "buzz" of "word-of-mouth" marketing that a product, service or companies are experiencing is due to the rise in use of social media and smartphones. Businesses and marketers have noticed that, "a persons behaviour is influenced by many small groups" (Kotler, Burton, Deans, Brown, & Armstrong, 2013, p. 189). These small groups rotate around social networking accounts that are run by influential people (opinion leaders or "thought leaders") who have followers of groups. The types of groups (followers) are called: reference groups (people who know each other either face-to-face or have an indirect influence on a persons attitude or behaviour); membership groups (a person has a direct influence on a person's attitude or behaviour); and aspirational groups (groups which an individual wishes to belong to).
Another part of SEM is social media marketing (SMM). SMM is a type of marketing that involves exploiting social media to influence consumers that one company’s products and/or services are valuable. Some of the latest theoretical advances include search engine marketing management (SEMM). SEMM relates to activities including SEO but focuses on return on investment (ROI) management instead of relevant traffic building (as is the case of mainstream SEO). SEMM also integrates organic SEO, trying to achieve top ranking without using paid means to achieve it, and pay per click SEO. For example, some of the attention is placed on the web page layout design and how content and information is displayed to the website visitor. SEO & SEM are two pillars of one marketing job and they both run side by side to produce much better results than focusing on only one pillar.
Social media itself is a catch-all term for sites that may provide radically different social actions. For instance, Twitter is a social site designed to let people share short messages or “updates” with others. Facebook, in contrast is a full-blown social networking site that allows for sharing updates, photos, joining events and a variety of other activities.
It is important for a firm to reach out to consumers and create a two-way communication model, as digital marketing allows consumers to give back feed back to the firm on a community based site or straight directly to the firm via email. Firms should seek this long term communication relationship by using multiple forms of channels and using promotional strategies related to their target consumer as well as word-of mouth marketing.