In the age of the internet, Facebook has become one of the premier ways to advertise a local business. Now, a new report from Borrell Associates shows just how many businesses are using the biggest social platform around to grow their business.
According to the report, almost 80% of local businesses have a Facebook page, and 62% are buying Facebook ads to reach a larger audience. In total, that adds up to more than 2.5 million US businesses paying to promote their brands or content on Facebook every year, spending $1,500 on average.
For the survey, Borrell Associates quizzed a mix of US businesses – many of which qualify as small businesses. However, it is important to note that some respondents represent larger brands with annual marketing and media budgets over $100,000.
Among those surveyed, 85% said they maintain a presence on at least one social media site. The vast majority of those (96%) were on Facebook, with Twitter in second place. Surprisingly, Snapchat does not appear on the list at all.
The data also shows that online marketing of all forms have firmly overtaken more traditional advertising mediums like print or TV ads as the best source of new customers for businesses. Company website and social media were second and third respectively, only outranked by word of mouth referrals.
A significant number of the respondents were categorized as “social media mavens” by the report, because they consider social media as the absolute best channel for acquiring new customers for their business. However, these businesses are probably not who you think.
Instead of new, high-tech start-ups or large businesses with the budget for extensive social media marketing, these “mavens” are described as being:
- “Smaller, older, independent companies with less than $1 million in gross sales.”
- “More likely to have a single location or be home-based than have multiple locations and slightly more likely to cater to consumers (B2C) versus only businesses (B2B).”
- 76% manage social media themselves.
- 57% pay to boost posts
A significant number of these companies are also looking at cutting or eliminating traditional advertising from their marketing mix in the near future.
The findings highlight that you don’t have to be a Forbes 500 company or a typical online-based business to benefit from marketing your business on Facebook. Businesses of all sizes are seeing the social platform as an enormously powerful tool for reaching new customers.