DEFINITION of 'Social Media'
Internet-based software and interfaces that allow individuals to interact with one another, exchanging details about their lives such as biographical data, professional information, personal photos and up-to-the-minute thoughts.
Social media originated as strictly a personal tool that people used to interact with friends and family but were later adopted by businesses that wanted to take advantage of a popular new communication method to reach out to customers, for example, by informing them of sales and offering them special coupons.