Small firms turn to social media

Over a third of SMEs use social media on a daily basis to promote their businesses, according to new research.

A survey by Daryl Willcox Publishing found that half used social media – and 35 per cent of these said they posted updates every day to platforms such as LinkedIn, Facebook and Twitter. A quarter of companies updated every few days, while 17 per cent used social media platforms weekly.

Almost three quarters of the companies experimenting with social media claimed they used LinkedIn the most, compared to Facebook and Twitter with about 60 per cent each. Of those who did not reach customers via social media, more than a third blamed a lack of time, a similar number said their customers didn't use it while 24 per cent didn't understand it.

Multiple reasons businesses gave for using social media included networking, attracting new customers and raising brand awareness. The research also found that 14 per cent admitted to using social media simply because others were doing it and 12 per cent said they were engaged 'just for the sake of gathering followers'.

In contrast to big brands using incentives such as money-off vouchers to develop and grow social media audiences, 83 per cent of SMEs said they did not use such incentives to attract followers. Despite this, 60 per cent said social media was having a positive impact on their business. Nearly half reported an increase in brand awareness and a third said they had attracted new customers.

Daryl Willcox, founder of Daryl Willcox Publishing, said: "The number of companies participating in social media on a daily basis shows the growing importance of this marketing channel. The fact that 60 per cent have reported a positive impact on their businesses shows SMEs are becoming increasingly receptive to the benefits."

The survey also found the use of social media by SMEs is still in its infancy, with more than two-thirds using it for less than a year.

Other forms of marketing still take precedence over social media – around half carried out email marketing, search engine optimisation for their websites and direct mailing. More than a third used online press release wires to distribute their news.