The information technology revolution in India has lead to wide spread adoption of the online channels for majority of the services be it banking, payment of various bills, insurance premiums, tickets bookings, mobile recharge and not to mention the online shopping. Consumers are spending their time online more than ever specifically on online social media platforms. This has become possible due to the meteoric growth of the internet access in India. According to an estimate there will be 500 million internet users in 2016. TRAI predicts that in coming years a major chunk of internet users will be from among the smart phone users. Marketers are also chasing them online and practicing the principle of catching the consumers online where they actually are. The role of social media in marketing is become more important. This paper discusses the increasing use of social media platforms in marketing activities ranging from creating awareness, customer service and feedback to membership programs for consumer loyalty. The study is conceptual in nature and the data is collected from various secondary sources. The collected data is analyzed through the technique of content analysis to bring about certain facts, status and trends. The study unfolds the present status of internet based marketing growth and status of different social platforms, highlighting the cases of Nokia, Uniliver, Tata, IBM and Dell, describing how they are making effective strategies to create niche in vast Indian market through social networking sites and the challenges they face.