What viral marketing means
One of the reference texts is the essay "Viral Marketing" that Steve Jurvetson and Tim Draper, investors in Hotmail, published in 1997. They describe how Hotmail added an advertising line with a link to every email its users sent: "Get your free email at Hotmail". Each message thus carried an advertisement and an implied endorsement by the sender, because the recipient could see that someone they knew already used the service. In the 1998 version, the authors put the result at over 12 million users in the first year and a half, with less than 500,000 dollars spent on marketing.
The example shows the two forms the term usually takes. In the first, spreading is part of using the product: whoever uses it shows it to others. In the second, a brand creates a piece of content, such as a video or an image, in the hope that it will be shared far beyond its own audience.
Social media marketing is something else: planned, ongoing work on social networks with the brand's own profiles and ads. A viral campaign can use social networks, but equally email or any other channel through which users pass content to each other. Social media marketing has its own entry in this glossary.