Sign In

Small Business News: Will Social Media Spend Overtake Paid Search?

Last updated 6 years ago

Search Engine Land reports that Borrell Associates has come out with an extensive new report about small business (SMBs) and their social media adoption.

According to this report between 45 percent and 70 percent of SMBs say they already have a presence on social media sites (mostly Facebook). 

More SMBs are using social media platforms now than ever before.

  • Borrell reports that between 60%-64% of SMBs have  formal presence on social media sites
  • Palore reports that 58.2% of SMBs are either on Facebook or Twitter
  • MerchantCircle reports that about 70% of SMBs said they promote themselves on Facebook

What does this mean for you as a business owner? 
If you're not using social media to promote your brand, your competition most likely is. And as a result, they are able to capture far more of the market.

With social media marketing just behind paid-search for SMBs in 2011, one could expect that social media advertising and other promotional spending could surpass paid search in 2012

According to the graph below 15.1% of the online ad spend was for search engine marketing (pay per click) with social media marketing coming closely behind at 13.7% of the online spend.

How are you determining social media success? 

Most SMBs, according to Borrell's report, measure social media success or ROI in terms of "new customers" as the key metric (but it's not clear how many actively track that or successfully track it). Additional fans/followers comes in as the secondary key metric for determining social media success.

The graph below illustrates the most important metrics for measuring social media marketing.

According to Borrell, "on average each SMB has a network of more than 4,000 friends and followers. But this statistic is skewed by a few respondents who claims tens of thousands or more. Perhaps a better gauge is the median reported: about 250 followers." 

Palore's mid-2011 study argued that about 38% of SMBs on Facebook had very few fans/likes and very little engagement. 

Overall though, what the Borrell report does illustrate is that there is an increasing demand for social media marketing among SMBs.

Are you increasing your social media marketing efforts this year? If so, what strategies are you implementing?


If you liked this article, check out the following articles related to social media:


About TeamBishop: TeamBishop (Dawn Bishop & Leslie Whittaker) are Internet Marketing Consultants with ReachLocal Orlando. Our mission is to help you grow your business by increasing your leads and revenues and decrease unproductive advertising expenses through proven online marketing strategies. Give us a call at 321.422.6600 to schedule your free consultation. 

Read our client testimonials to learn more!

Author: Leslie Whittaker

Graphics and partial content from Search Engine Land article "Report: Social Media Spending Threatens to Overtake Paid Search Among SMBs."


  • Loading comments... Spinner

Mashable Award Badge

  • Hours:

  • 8:00 AM to 8:00 PM Monday
  • 8:00 AM to 8:00 PM Tuesday
  • 8:00 AM to 8:00 PM Wednesday
  • 8:00 AM to 8:00 PM Thursday
  • 8:00 AM to 8:00 PM Friday


  • Recent Posts
    • Loading posts... Spinner
  • View All
  • Recent Comments
    • Loading comments... Spinner
  • Related Links
  • Popular Tags
    • Loading tags... Spinner