In this technologically advanced era, it is surprising to see that how international companiesrnare taking advantage of the internet. Internet has a significant impact on companiesrnmarketing campaigns. Social media platforms such as Facebook, Twitter, LinkedIn, YournTube and Google+ have changed the way companies market their products and services.rnSocial media has become an integral part of their promotion mix and has transformed thernway companies interact with customers. It is a new field of research and a literature reviewrnreveals that not many studies have been undertaken specially in Ethiopian context. There arernfew studies which have been carried out without much scientific evidences, which havernconcluded that due to emergence of social media, the traditional advertising has diminished.rnNevertheless the use of social media marketing in Ethiopia is at its infant stage. However,rnthe current situation may not extend for long due to the fast growing usage of social mediarnplatforms, fast growth of internet penetration and the need for companies to participate inrnthe globalized world in order to be competitive with international companies and to benefitrnout of this astounding technology.rnThe purpose of this research paper has been to look at how social media can create brandrnawareness and its use in Ethiopia. This study is of an exploratory and descriptive naturernwhose primary objective is to provide insight into a new marketing phenomenon. Arncombination of both quantitative and qualitative method was used. It has been possible tornwithdraw necessary primary and secondary data by conducting an online survey and expertrninterview and also by referring related literatures respectively. A combination of structuredrnon line survey questionnaire and structured interview is conducted to collect the requiredrninformation. Both primary and secondary methods were used to gather data to attain bestrnpossible outcome of the researchâ€™s effort. The size of the population for this study isrnunknown as social media networking sites are dynamic and complex and they are impossiblernto count given that the number of members increases on a daily basis. Therefore, thernresearcher used the sample size recommended for unknown population by Corbetta (2003)rnwhich is 385. However, the researcher distributed online questionnaires to 500 respondentsrnin order to increase the response rate.rnviiirnConvenient and snow-ball non-probability sampling method were employed to conduct thernonline survey and expert non-probability sampling technique was used to interview experts.rnThe data collected using the structured online survey questionnaire via a linkrnhttps://adobeformscentral.com/?f=x3MvHdh1gSo0flJzC2L9ag was analyzed descriptivelyrnusing adobeformescentral.com and the results were presented in different forms of graphicalrnand tabular representationsrnThe finding of this research paper indicates that most consumers pay attention tornadvertisements recommended and shared by friends and contacts on social media networksrnrather than the direct information provided or advertisement campaign made by companies.rnRecommendation of others which is known as electronic word of mouth is considered as thernmost reliable source of information to influence consumersâ€™ perception about products andrnservices and half of the consumers buy products based on the information they acquire fromrnsocial media networks.rnOn the other hand, companies are using social media marketing specially to reach theirrninternational customers, to create awareness of their brand and to improve their brand image.rnNevertheless, they are facing several challenges which hinder the smooth application ofrnsocial media marketing campaign. However, most local companies use other traditionalrnforms of promotional channels most such as TV and radio advertisements.rnThe use of social media marketing nowadays is becoming very popular worldwide and it hasrnchanged the relationship between customers and business and this effect will graduallyrncontinue to evolve in Ethiopia as new media infuses the culture and society. Therefore, thernresearch suggested that local companies should use social media network to present theirrnbrands with enormous reach, endless communication possibilities and with a very limitedrnpromotion cost and grab the possible opportunities of exploiting the brand building potentialrnthrough the richest and fastest communication form available. However, Social Media as arnform of marketing will present a whole new phase challenges. Therefore, companies need torndevelop their marketing strategy with special care in order to minimize the risk andrnchallenges of online branding.