Social media can be a good tool for generating traffic because each platform has the ability to reach a new audience in a new way.
Hashtags are a great way to reach people of similar interests who you don't already have as an audience base. Also, the best part about social media is the potential for engagement. Unlike other means of marketing, social media allows you to have direct contact with your audience and thus engage them on a more personal level.
You can understand their problems, answer their questions, build a personal connection and more through them. It is, of course, a tool and you should know how to use it. Each social media platform is different, so it's best to know the best practices for each of them to have the greatest impact on all.
Another great feature of social media which makes it a good means of generating traffic is that it is free! Reducing marketing costs can help increase profits. Of course, I believe they also have paid advertising which can help if you want to supplement your social media marketing strategy.