Fast technological development in social media offers many opportunities for companies in order to have better connection with their customers. Traditional tools become less effective and companies are working intensively to be present on the web. This paper will try to answer the question what are the advantages of social media as a marketing channels compared to conventional way of advertising. The authors will specially pay attention to how can companies improve and increase their presence in social media by using different strategies and which tools and services can be used in order to have better connection with the customers.