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Report: Most Small Businesses Plan on Marketing Online, But Skimp on Social Media

Monday, December 06, 2010 by George Tobin

Small businesses budgeting for 2011 are faced with allocating limited resources across several areas of need, including advertising and customer acquisition. Faced with a multitude of ways to spend their precious marketing dollars, some may focus on print advertising, telemarketing, websites, or attending events. However, according to a recent report on Inc.com, many small businesses are ignoring social media, despite its tendency to be very inexpensive, in favor of search engine optimization (SEO) and websites. Why are so many small businesses neglecting social media to focus on websites as the core of their business growth?

Despite grand predictions for social media growth in 2010, the Inc.com report indicates small businesses have been slow to integrate Facebook or Twitter into their marketing plans. Social media presents a tantalizing opportunity for small business budgets, with equally unlimited opportunity to be a platform for branding as well as new business generation. With millions of users ready to promote through word of mouth and engage with businesses, social media can offer free advertising and real-time communication with a growing audience of customers. How, then, to explain the lack of adoption in small business?

The value of website and search engine marketing has been clearly drawn to even late adopters -- with yellow page use declining, potential customers are turning toward Google, Bing, and Yahoo to find places to do business. Unlike these proven marketing investments, the allure of social media begins to fade as businesses try to determine the "how" and "why".

For a small business with constrained resources, it can take some dedicated brainstorming to think up promotions, offers, and content to offer up to potential customers - not to mention the daunting challenge of defining a target audience to seek out on Twitter and Facebook. Growing a following organically can be frustratingly slow and requires a separate investment to attract individuals on social media networks. Facebook and Twitter advertising is still in its infancy and attempting to promote a product or business will be a less targeted affair compared to Google's AdWords or AdSense. 

Finally, the return on these investments can be scarce and ephemeral compared to website and search engine investments. According to this article, businesses with a purely financial approach will be frustrated. While excellent for branding and developing trust with customers, transmuting hundreds of fans into paying customers will be a challenge. This is especially true for business-to-business services with a narrow target market, or nonprofits competing for public support against nationally-based service organizations. For small businesses constrained by time and resources,social media may be  neglected in 2011

However, the opportunity to brand your business with social media, engage with your community, and contribute value through articles, comments, and links should not be overlooked. With even 5-10 minutes per day, you can establish a vibrant presence and begin growing your audience. Will your business invest in social media marketing in 2011? Share your stories of social media success with us!

Until next time -

George Tobin

Switchfast Technologies
Chicago IT Support & Consulting
Rochester IT Support & Consulting
Outsourced Marketing Services

 

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