October 15th, 2009 by Bob Bly
According to a new Citibank survey, more than three out of four small business owners have not found social networking sites to be helpful in either generating new business leads or expanding their businesses during the last year.
An article in Marketing Charts, sent to me by online media expert Sarah Stambler, reports: “Despite widespread consumer use and increasing marketing efforts on social sites among larger organizations, managers in small businesses apparently are not jumping on the (social media) bandwagon.”
Since small businesses have much smaller marketing budgets than large organizations, and since social media is supposedly free, you would think small businesses would flock to social networking sites and embrace social media marketing.
The only reason why they might NOT do so is lack of ROI: even with its low cost, if social media doesn’t generate results, small businesses are not going to use it. They simply cannot afford to waste their time or money on marketing that does not generate positive ROI.
Large organizations can get excited about social media and write articles about its importance, because large corporations often spend millions on marketing programs, like branding campaigns, that generate no discernible ROI.
Make sense? Am I right, wrong, stupid, or crazy?
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