Really interesting findings in a Citibank/GFK Roper small business survey that was released on Friday.
The survey of 500 small businesses (less than 100 employees) found that found very few small businesses in the U.S. are using social media sites like Facebook and Twitter for business uses:
- Three-quarters of the small business owners surveyed say they have not found sites such as Facebook, Twitter and LinkedIn helpful for generating business leads or expanding business in the past year
- 86% said they have not used social networking sites for information or business advice
- 25% said they’re using more online advertising to generate business leads and sales
- 10% said they have sought business advice and information on expert blogs
“Our survey suggests that small business owners are still feeling their way into social media, particularly when it comes to using these tools to grow their businesses,” said Maria Veltre, Executive Vice President of Citi’s Small Business Segment. “While social media can provide additional channels to network and help grow a business, many small businesses may not have the manpower or the time required take advantage of them.”
What I found really interesting from the survey was the difference in social media marketing efforts by geographic region as well as age of business.
What you see is that newer businesses (less than 10 years old) are more likely to be focusing more on social media sites than companies that have been in business longer. I would hazard a guess that the newer businesses are run by a younger generation and are more likely to use sites like Facebook and Twitter.
Worst part of the country for trying social media sites? The North East which consistently lagged behind the rest of the country in their willingness to try social media sites. The most social areas of the country? The South edges out the Midwest slightly across the responses.
The one area of social media that older, more established companies use over younger companies is that they are more likely to read expert blogs for advice.
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I’m not sure Citibank’s survey should be taken so seriously. It was one question packaged in a larger survey, it lacks historical context and of those not finding social media helpful, it failed to ask how they had used such sites.
I’ve penned my thoughts here, http://societrends.com/2009/10/12/citibank-survey-question-muddies-water-for-small-businesses/.
Actually it was not one question Nick. It was several questions around social media
I agree there needs to be more factors revealed. Did the companies interact on social media sites, or did they just plug their company. How long did they give their social media attempt before they came to the conclusion it wasn’t helping?
I guess just like everything new, it would take time for social media to be absorbed by the majority. But we can’t deny that it does help business.
social media can provide additional channels to network and help grow a business
The survey supports conclusions I’ve drawn from conversations with other small business owners here in the Metro New York area: we don’t have the time, we don’t see the direct benefits. When you’re in the Fortune 1000, have a recognized brand, and can afford the staff, then sure, I can see the benefits. For businesses like ours and our clients, I don’t see the payoff.