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Survey downplays importance of social media for small businesses

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Social media marketing hasn’t replaced word-of-mouth recommendations, The Wall Street Journal reported.

Nearly half of small business owners do not use social media, feeling that it’s not necessary to their business, according to a recent survey by small business insurer Hiscox Insurance Co. Inc.

Only 4 percent said they couldn’t do without social media as a marketing tool, compared to 50 percent who said the same about word-of-mouth recommendations.

Of those engaging in social media for business purposes, 28 percent have a company Facebook page, 18 percent have a company LinkedIn page or group and 8 percent have a company blog. Only 6 percent have a YouTube or video-streaming channel and 2 percent have a company Twitter feed.

The results come from 304 U.S. business owners and managers, more than 200 of whom are founders of their companies. All of the companies surveyed have fewer than 250 employees.

The most common reasons for using social media were to increase brand awareness and generate sales; 10 percent said they also used social media for research purposes.