Smaller Businesses See Big Returns From Social Media

A new study from LinkedIn reports a strong correlation between smaller businesses that are increasing social media spending in areas such as content marketing and lead generation and those achieving what it calls 'hyper growth.'

A new study commissioned by LinkedIn reports that 81 percent of SMBs are currently using social media to drive business growth, and 94 percent are meeting marketing objectives through social media.

Nearly half of respondents say they use social networking to learn and glean insights about their industry. The study surveyed 998 SMBs in the United States and Canada and conducted by market research firm TNS on behalf of LinkedIn.

[Related: 11 Tips for Creating a Buzz-Worthy LinkedIn Company Page]

Getting Social Brings New Business

Almost three out of every five SMBs surveyed say social media helps their business gain new customers. Collectively, these companies with revenues between $1 million and $50 million accounted for a 10.7 percent year-over-year increase in marketing budgets last year, according to local advertising research and consulting firm Borrell Associates. LinkedIn's "Priming the Economic Engine" study also highlights a strong correlation between SMBs that have increased social media spending and achieved "hyper growth."

Hyper-growth companies with significant year-over-year increases in revenue -- one in six of the companies surveyed -- are among the most active in social media marketing. Of those in hyper-growth mode, 73 percent reported an increase in social media spending. Branding, word-of-mouth, content marketing and lead generation were each widely identified as the most effective use cases for social marketing.

"Through the study, we found that SMBs that are in growth mode rely heavily on social media for multiple activities in their value chain, including finding and researching financial service providers," Jennifer Grazel, category head for financial services at LinkedIn, noted in a blog post.

[Related: 5 New LinkedIn Tips for Power Users]

"Given their willingness to market their businesses and seek knowledge within social networks, financial marketers with an eye on SMBs should invest time and resources meeting them where they are. Hearing or reading about a financial services product or service on social media is likely to trigger SMB decision-makers to take further action, whether that means educating themselves, engaging in discussion or purchasing a product," Grazel says.

The businesses surveyed for LinkedIn's study also identified the most valuable social media content in terms of business insights. Industry specific news articles lead the pack, followed by testimonials, reviews and opinions from customers, clients and industry experts. Best-practice guides from other companies and news articles about relevant companies were also cited.

LinkedIn Targets Small Businesss

A new hub for small businesses from LinkedIn is designed to provide resources such as best practices and guidelines for social marketing.

The site includes playbooks for crafting profiles, sharing insights and expanding audiences. The five best practices outlined include targeting hyper-growth companies, providing a clear path to learning, taking advantage of unmet content needs, providing resources for the entire SMB value chain and building credibility for facilitating open dialogue with SMBs.

[Related: 3 New LinkedIn Features You Need to Know About]

SMBs generate $5.5 trillion in annual revenue, according to the latest data from the Dunn and Bradstreet Database cited by LinkedIn. The impact on job growth is even more profound, with seven out of every 10 new jobs being created by small businesses, according to the U.S. Small Business Association.

Matt Kapko covers social media for CIO.com. Follow Matt on Twitter @mattkapko. Email him at mkapko@cio.com Follow everything from CIO.com on Twitter @CIOonline and on Facebook.

Read more about internet in CIO's Internet Drilldown.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

Will our manners go the same way as texting when robotic servants take over?

Much of the talk in the industry is focused on the limited amount of time that screens have left in our lives.

Katja Forbes

Founder and chief, sfyte

Social purpose: Oxygen for your brand health vitals

If trust is the new currency, then we’re in deep trouble. Here's why.

Carolyn Butler-Madden

Founder and CEO, Sunday Lunch

Customer experience disruption: Healthcare faces a bitter pill

Over the past decade, disruptors such as Amazon, Apple and Australia’s Atlassian have delivered technology enhanced customer experiences, which for the most part, have improved customers’ lives and delivered unparalleled growth. Can they do the same for healthcare?

Alex Allwood

Principal, All Work Together

The advancement of AI will make most of human jobs obsolete in the coming 10 to 20 years. Protecting or try to save jobs will make the h...

vallab01

Aussie futurist: Personal AI will be a reality in five years

Read more

are you talking about bbc news here

frank

CMO interview: How BBC Worldwide's marketing lead builds brand purpose and growth

Read more

Toms is definitely my favourite shoe brand! Along with Aurélien. For this summer I bought two pairs of navy Toms espadrilles and a pair o...

Paul Erickson

​The shoe with a good soul: TOMS’ innovations for philanthropic engagement

Read more

I think this is the best article today about the salesforce latest platform. Thanks for taking your own time to discuss this topic, I fee...

Ramramky

Salesforce looks to democratise AI, IoT with latest platform play

Read more

I came across this recently when researching blockchain loyalty point projects. There are quite a few projects. Most are in development a...

Andrew @ EcomLoop

How cryptocurrency is set to change the customer loyalty program model

Read more

Latest Podcast

More podcasts

Sign in