The purpose of this study was to examine the effects of social media marketing on business performance of supermarkets. This study was conducted at Kinondoni municipal. The study reveals the effect of social media performance, social media analytics and active presence on the business performance of the supermarkets. The totals of 200 respondents were purposively selected from the supermarkets in Kinondoni municipal. Structured questionnaire and interview were used for collecting primary data whereas secondary data was collected by using documentary review. Descriptive and multiple regression techniques were aided by using SPSS. The results show that social media performance has positive and significant relationship with business performance of the supermarkets (beta value 0.539, t=8.925, p=0.000). The findings suggest that a unit increases in social media performance will lead to 0.539 increases in the scores of business performance. Moreover, the results show there is positive and significant relationship between social media analytics and the business performance (beta value 0.6202, t=7.552, p=0.001). The results show that a unit increases in social media analytics will lead to 0.6202 increases in the scores of business performance. Furthermore, the findings show that there is positive and significant relationship between active presence in social media and business performance of the manufacturing companies (beta value 0.919, t=8.055, p=0.000). The findings suggest that a unit increases in active presence in social media will lead to 0.919 increases in the scores of business performance. The study concludes that social media performance has positive effect on the business performance, also active presence in social media to increase business performance of the supermarkets. The study recommends that supermarkets should make social media become part of the strategies in order to increase business performance.