GLOBAL ECONOMY

Social Media A Lousy Investment For Small Businesses?

Manta

 (Manta)

Small business owners have increased their time on social media, but most are not seeing a profit return from the time spent on sites like Facebook and Twitter.

According to a Manta survey of more than 1,235 small businesses, 49 percent of owners said they have increased their time on social media outlets – but a whopping 61 percent have not seen a return on their investments.

Still, 39 percent of small businesses said they do notice a profit. Of those seeing a cash inflow, 30 percent of the small businesses said they noticed a financial uptick of about $2,000 or more. But most, 40 percent, see a return of anywhere between $100 to $1,000.

Regardless, according to the Manta survey, 31 percent of business owners still plan on spending the majority of their investment dollars on engaging new customers through social media. About 26 percent of owners said they will spend the majority of their investment dollars on online advertising, marketing, and social media.

Most small businesses (53 percent) dedicate one person to handling social media for the company, and 21 percent dedicate two to five people in an attempt to best harness the power of the social networking sites.

But coming up with clever Facebook statuses and tweets can be difficult – just ask small business owners.

Eighteen percent of small business owners said Facebook is the hardest social media outlet, followed by LinkedIn (10 percent), Twitter (9 percent), Google+ (8 percent), Manta (8 percent) and Pinterest (4 percent).

Despite any difficulties in learning how take advantage of the power of social media, the majority of owners still plan on investing in social media to acquire and engage new customers (36 percent).

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