Small Business are Profiting with Socia Media.

According to recent research compiled by Melbourne IT, small businesses using social media to leverage online business, are likely to achieve greater revenue.

eBiz Review polled 3,404 Australian small and medium sized businesses (SMBs) with an online presence, from a broad cross section of over 26 industry sectors.

The data showed that SMBs generating 20 per cent or more of their revenues from their website were more likely to use social media.

With Comscore estimating that 90% of Australian Internet users visited social media sites in February 2010. It is no surprise that social media has become a hot area of marketing investment from large enterprises as they try to access such a large pool of potential customers. But what about small businesses?

A third of eSMBs have dived in and established a social media presence, with the social media tools of choice being used by the 34% of social media believers being Facebook (75%), Twitter (47%) and LinkedIn (42%).

Among social media users, 85% cite benefits to their business, with 57% saying they are attracting new customers via social media. Just under half (49%) said it helped them explain their products and services in new ways and just over half (51%) said it helped put a ‘human face’ to their business.

The success of social media using SMBs in attracting new customers must be an eye opener for those companies which are not; these results also demonstrate that the “softer” perception building elements of social media tools are not lost on savvy eSMBs.

SMBs need to think about how social media fits into their online strategy and seek advice where necessary to integrate social media tools with their existing online investments to ensure success.

With Facebook in Australia now the third largest online brand behind Google and Ninemsn, the results are not that surprising. Businesses that ignore the growing trend of social media should do so at their own peril. But ask yourself... “Are my competitors also ignoring social media?” Not likely.

Engagement with consumers has to give a business a return on investment at some point.

Thirty four per cent of SMBs online use social media, and a further 15 per cent said in the survey they planned to include it in their online strategy in future.