Online social networks like Orkut, Facebook have helped social media marketing emerge the most sought after marketing form and replace the more traditional tools, feel experts.

"The village well or the barber's shop were earlier forms of social media that were creating ripples. Electronically enabled social media like Facebook or Orkut is global magnification of conventional social media," said Ivan Arthur, Trustee of the Asian Institute of Communication and Research.

He said that word of mouth, is a powerful media and has retained its position since times immemorial.

"When Rajiv Gandhi was assassinated we heard it on the streets first and later from the conventional media," said Arthur, a former creative director of the fourth largest advertising agency JWT.

Arthur, who was in Goa to participate in 'Samriddhi'10', an annual conference organised by Goa Institute of Management (GIM), said marketing experts have eyed social media as an inexpensive tool.

"From over all marketing strategies to specific communication spheres like the blogosphere, the significance of the social media world as an effective marketing tool cannot be ruled out," he said.

"Online marketing is growing at a rate of 30 per cent, versus traditional marketing which grows at 10 to 12 per cent," Rajeev Lalwani, founder of Blogworks, said.

Lalwani, who provides strategic social media solutions to brands and corporates, said that ad spend on online media was just two per cent.

According to Abdul Khan, senior vice president marketing, Tata Docomo, despite online marketing techniques, there is nothing that can substitute relation managers, who make their physical presence in the market.

"But when there is a large enterprise you need to create the solution, which is in the form of social media," he added.

Stating that technology was a lever for various players, Arthur said, "in such circumstances its not the medium but insight into people who use the medium, which is going to give you the edge."

The experts said, that advertisers have just started to skim the surface of social media.

"There is lots which will follow in the years to come as far as use of this media is concerned," said Gaurav Mishra, writer and an IIM Bangalore alumni.

While flying high on the success of social media marketing, companies are also wary about online frauds.

"Online fraud is a big issue. Increased spend on security and education to the consumers can curb these instances," Lalwani said.

"The more educated the customers are, the less gullible they will be," he added.