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Why do smaller firms not use social media marketing?

July 14th 2010

Search Engine Optimisation News

Despite the strong advantages that social media marketing can provide to companies, many smaller businesses have avoided using these strategies, an expert has noted.

Matt Owen, writing for Econsultancy, has cited the fact that hundreds of guides have emphasised the benefits to website marketing that using this type of system can provide.

He said that there has been a "lag" in adoption which is mainly affecting small and medium-sized businesses, with many of these deciding to opt-out of having an online presence of this type.

Online advertising as a whole has been expanding despite the recession. eMarketer figures published this month have shown that online ad spending grew two per cent to $55.2 billion (£36.22 billion) in 2009 and it has predicted that double-digit growth will be experienced this year.

Among the key reasons that firms do not make use of social marketing include the fact that some CEOs do not trust their staff with the company's "message", a perceived lack of resources, the risk that this can be seen as a distraction and the fact that it can be hard to track a company's return on investment.

Mr Owen emphasised the fact that the best approach to take when dealing with social media is not to try and control the message and instead to treat employees with trust and mutual respect. He added that this is usually symptomatic of either employing unsuitable employees or failing to provide enough time for training in proactively promoting the company.

Contrary to many assumptions, dealing with social media should neither be time nor resource-consuming, as while engagement tools can be deployed through these channels they are not imperative.

"Being truly social involves listening, learning and talking," he explained. "It's perfectly acceptable to use your Twitter or your Facebook entirely as a customer service and information point, as long as you make a concerted, earnest effort it will still have major brand value."

Mr Owen added that the fact that there is not a direct return to the department does not undermine its worth, as customers are increasingly unwilling to be "passively 'sold at'".

He concluded by highlighting the fact that the growth of social media has created a cultural shift. This means that those companies which respond most effectively to these transformations make the gains in terms of brand recognition and identity.

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