Today in this fast changing world, every aspect in our life cycle is surrounded by technologies. The flourishing machines have definitely made our life easier and the globe smaller. A revolutionary step taken on internet was social media services which attracted the crowd so much that it was banned in many countries saying it affected daily work.
Social media are Internet sites where people interact freely, sharing and discussing information about each other and their lives, using a multimedia mix of personal words, pictures, videos and audio.

At these Web sites, individuals and groups create and exchange content and engage in person-to-person conversations. But the real question is "does social media have bad impact on our business?" Its use is growing at an astronomical rate. With Facebook floating on the stock exchange at a mind boggling $104 billion, many naysayers predict a bubble. However, there is no denying the power of social media and the impact that it can have on the business of marketing.
Social media websites such as Facebook, Twitter, Linkedin and Pinterest represent a huge opportunity for businesses to grab the attention of customers while simultaneously building a brand image. There are plenty of tactics that businesses can employ to do this including the creation of brand profiles on social networks such as Facebook fan pages and creative advertising via branded podcasts and applications, also known as apps.
It is growing at its fastest rate in developing countries. People are connected on a global scale and casually participate in each others lives through online observation. Something as simple as “Liking” a brand on Facebook can spread virally very quickly throughout the various social media channels.
Social media is turning out to be less about friends and more about business.
Although social media provides businesses with a new range of options for communicating with customers, the platforms also change the nature of business communication, favoring personal engagement and visual content over traditional marketing copy.
The same social networks that serve to spread good consumer reviews and your marketing copy can also serve to make information that you don't want to reach your customers to go viral. Including everything from negative reviews and comments about your company to unauthorized or inappropriate posts on your account, these pieces of content can do serious damage to your small business' reputation. The informal, conversational tone of social media makes it more likely that even well-intentioned comments on your account can be misinterpreted, and once they're out with a negative spin, there's no taking them back.
These new forms of social media is nothing but improved form of newspaper ad agencies in earlier 90’s. Though they exist today but are limited to a particular group of people. While many businesses would never have used public forums and review sites in the past, social media has become a tool capable of making or breaking a reputation. In short, from the financial point of view, the hierarchy of business is disturbed by social media and the fame earned by any company can be at stake due to some irregular comments or dislikes made by a group of people.