Social marketing potential 'not being exploited'

A new study suggests that many small businesses are failing to embrace social networking websites and services, despite the contribution they can make to their email marketing campaigns.

Research conducted by Citibank and GfK Roper indicates that 76 per cent have not found sites such as Facebook, Twitter and LinkedIn to be helpful in terms of generating new business leads.

In addition, 86 per cent say they have not used social networking sites to obtain business advice or information.

Some 61 per cent of respondents said they were relying upon search engines to provide the information they need for their marketing campaigns, despite the great potential to find customer feedback elsewhere.

Maria Veltre, executive vice-president of Citibank's Small Business Segment, said small business owners appear to be "still feeling their way into social media, particularly when it comes to using these tools to grow their businesses".

She added: "While social media can provide additional channels to network and help grow a business, many small firms may not have the manpower or the time required take advantage of them."

Last month, Steve Jaggard, co-founder of Further Search Marketing, told the East Anglian Daily News that innovative marketing methods are crucial for ambitious firms as the recession ensues.

Written by Mark Hainsby