Social media marketing is growing rapidly but adoption by brands has been slow. While hundreds of millions of people use social networks each month, less than 1% of digital marketing budgets are spent on social media. Currently, there is a lot of confusion around social media advertising as platforms and ad networks provide mixed messages to brands. However, engagement with branded social applications promises to be more effective than traditional banner ads, and social marketing budgets are expected to increasingly shift towards developing custom applications. The biggest challenges for brands will be cutting through the noise in the industry, building applications that can scale effectively, and tying social media efforts directly to business results.