Social media marketing

What it means

Social media marketing is promoting a company, its products and services on platforms such as Facebook, Instagram, LinkedIn, TikTok or YouTube. It covers free content on the company profile, community building, work with content creators and paid advertising targeted at a precisely chosen audience.

Organic content builds the brand and trust, but without paying its reach is usually limited. Paid ads can target people by age, interests, location or behaviour, and retargeting brings back those who have already visited the website.

For B2B, LinkedIn is used most often; for consumer products, Instagram, Facebook and TikTok. The choice of network depends on where the target group is, not where the company owner happens to be active.

How it works in practice

Advertising, content production and agency costs are deductible. Advertising platforms mostly invoice from abroad without Slovak VAT, so the company self-assesses the tax and, if it is not a VAT payer, may have to register under Section 7a because of it.

Platform invoices often have to be downloaded from the account dashboard and are not emailed. We recommend deciding who downloads them each month and sends them to the accountant, or card payments will lack documentation.

Results should be measured in money, not just likes. Combining ad data with sales and conversions shows what it costs to win a customer and whether a campaign pays off, as with PPC in search engines.

What to watch out for

A common mistake is a profile run by one employee from a personal account. When they leave, the company loses access to the page and the ad account. Profiles and ad accounts should belong to the company and have several administrators.

The second risk is contests and promotions on social media without rules. A prize contest should have terms, information on personal data processing and, for larger prizes, a solution for the winner’s tax on the prize.