Small businesses spend the most funds on social media

small-business-social-media-spendingAccording to a new report by research firm BIA / Kelsey, social media is now the top platform small businesses rely on when it comes to usage and spending. Nearly 75 percent of all small businesses with fewer than 100 employees rely on social media to advertise and market their businesses, which is up from 71.7 percent this same time last year. Additionally, small businesses spend about 21.4 percent of their total media budgets on social media, which is up from 18.9 percent last year.

Analyst experts say that small businesses prefer to place their dollars in social media because it’s convenient, user-friendly, inexpensive, and an ideal way to connect with their local target market. Also, small businesses feel confident that they can easily learn and master the skills needed to run an effective social media marketing campaign.

The most effective social media channel for small businesses has proven to be Facebook, followed by LinkedIn, although it’s suspected that LinkedIn is used mostly for HR and personnel purposes. Despite the fact that more small businesses are ramping up their social media campaigns, many still don’t feel as if ROI is benefitting from their efforts at this time, but continue to work on improving their strategies.

For more information, check out this article about how small businesses are now spending more dollars on social media marketing campaigns.