Social media marketing is the use of social media platforms to market products and services to the intended consumers. It involves the process of tailoring the marketing content to the needs and preferences of the target consumers. With most social media platforms having in-built data analytics tools, it enables businesses to build marketing content according to the users’ preferences and track and monitor the marketing campaigns to gauge the popularity, user engagement and the success rate. This also helps businesses plan future marketing campaigns based on past consumer preference data.

With the rise of social media as a highly viable platform for introducing and marketing products and services to consumers across product lines, demographics and geographies, this paper aims to analyze how different factors such as industry and firm size affect the rationale behind various social media strategies that are being devised and implemented by businesses. This paper studies the existing literature in this area of research and examines the impact of social media in business marketing strategies and in turn the impact on the firm’s equity value.