Small Businesses Spending More And More On Social Media Ross | January 10th, 2012

According to a newly released study from Borrell Associates, small businesses are spending more of their budgets on social media. In fact, small and medium size businesses expect to spend nearly as much on social media as they do on search engine marketing (see table below).

This is not surprising and confirmed by other recent survey data, including a survey from StrongMail on 2012 marketing trends). Although the survey data is inconclusive and often conflicting, most surveys report that 40 to 70 percent of small and medium size businesses are using social media. Non-survey data tends to support those results (58.2 percent of SMBs have a presence on social media networks, according to Palore – but these numbers are not clear-cut because between 40 and 50 percent of the businesses who self-identify as using social media on Facebook, for example, have little or no activity there).

Perhaps the most important piece of data (other than adoption) concerns the methods businesses use to measure success in social media. Although it’s not clear how most businesses track this – many use customer acquisition as the key success metric. Fans/friends/followers are also an important metric (see graph below).

How active is your small business on social networks and how do you measure success? We’d love to hear from you in the comments.

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  • Daniel Milstein

    That is true,Ross. As an author and business man, I can relate to how you said, ”
    Although the survey data is inconclusive and often conflicting, most surveys report that 40 to 70 percent of small and medium size businesses are using social media ”. I hope more people discover your blog because you really know what you’re talking about.  Can’t wait to read more from you!

  • Anonymous

    The spending on social media has gone up for
    small businesses. The reason for it is now 70 % of small businesses are using
    social media for marketing reasons. Businesses have their own metrics like fans/friends/followers
    to measure their success rate. So, the spending has certainly increased on
    social media like Facebook, Orkut, Twitter and others as compared to search
    engine marketing.

  • http://www.logoswish.com/ Logoswish

    Thank you for this post.

  • Nicole

    Do you have any more current data to share? Great article. Thank you!

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