SBSI Wave-5
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*Caution: small sample size
Will social media affect websites? According to small businesses, the result of using social media is more likely to be an increase in website investment rather than a decrease. Of those businesses using social media, 62 percent do not plan to change their investments in their corporate website in the next 12 months as a result of social media; in fact, 27 percent plan to increase their investment because of social media. Another 5 percent plan to spend less on their websites as a result of social media, and 4 percent will replace or forgo their site altogether. The negative impact from cutting or forgoing websites – 9 percent in total – seems quite small, but as a cautionary note, this impact was only 2 percent in June of last year. This is an important trend to watch in future waves, as businesses may start viewing social media as a new paradigm that can replace websites, just as consumers are shifting from email to social media.
Portable devices play a role in some small businesses’ participation in social media. Almost half (47 percent) of small businesses that use social media have responded to comments on social media sites over their mobile devices, while the same share have used their mobile devices to send text messages to customers (see Figure 20). Other social media applications with portable devices include: sending status updates (36 percent) and reviewing content (35 percent).
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Mobile Marketing by Small Businesses
Small businesses are widely embracing the concept of marketing their products and services on the web and through social media, but a new frontier will be mobile marketing. Mobile marketing encompasses a range of activities ranging from sending text messages to creating mobile applications. Most small business owners are aware of various mobile marketing activities, the best known including: sending text messages to customers about a promo (73 percent) and listing the company on a location-based website (68 percent). Most owners are aware of other applications, including creating their own mobile website, placing ads on mobile websites, and creating their own apps for their business.
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*Includes those who have now plus those planning to within 2 years
While awareness of mobile marketing activities is high, usage is low. The most common mobile marketing usage is listing the business on location-based websites, which is now done by 19 percent of businesses. This is also the area with the greatest long-range potential, with over 33 percent of small businesses expecting to engage in this activity within two years (current users plus intended users). A tenth (9 percent) of small businesses broadcast text messages to tell customers about promos, and it is expected that 18 percent will engage in this activity within two years.
One reason small businesses have not embraced mobile marketing is they view the concept as cutting edge rather than a practice they can engage in now. Most owners consider mobile marketing to be either “ahead of its time” (24 percent) for small business or “cutting edge” (36 percent), while only 19 percent consider it to be “mature and proven.” Another reason small businesses have not engaged in mobile marketing activities to a greater degree is that they do not see its value. Only 15 percent of small business owners believe that mobile marketing would be “extremely” or “very valuable” to their enterprise, and only another 20 percent feel it would be “somewhat” valuable (see Figure 22). Educating owners on the possibilities of mobile marketing does not change their attitude. After being read a list of various mobile activities as part of the survey, 15 percent still considered mobile marketing to be “extremely” or “very valuable”.
No specific mobile marketing activity is viewed as highly valuable by more than a minority of small businesses. The most valuable application is also the most widely used one, listing on a location-based website; 23 percent of small businesses consider this to be “extremely” or “very valuable,” and half consider it to be at least somewhat valuable. A mobile website specifically for the small business is the next most valuable application. All other applications are viewed as having limited value by two-thirds of owners.
Why is mobile marketing viewed as having such little value? To be fair, not all small businesses will benefit from mobile marketing the same way as from a website or social media. Some businesses have products/services or a customer base that is not well served in a mobile environment. There may also be concerns about texting to mobile devices that are similar to those that have existed in the past about mass emailing or telemarketing. Finally, as noted already, mobile marketing is a newer area for small businesses who are still trying master other technologies.
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