Consumers engaged, literally, so why are firms spending less on social?

By Amy Kellow | 20 May 2013
 

Do you use social media while you're on the toilet? Congratulations and welcome to the brave new world. Actually, only 6% of Australians log on in the bog. But that's 20 per cent more than last year. What's more, around four in ten check it first thing in the morning and last thing at night, and almost half the population checks their status daily.

These stats, from a new study from Sensis - the people behind the Yellow Pages directory - confirm what everybody knows. More and more people are addicted to social, and mobile is increasingly the delivery mechanism of choice. So, asked the firm, what are businesses doing about that?

But first, some more stats: The number of social media users now using smartphones to feed their need increased to 67% from 53% in 2012, while the proportion using laptops and PCs dipped (although old school is still popular with the over 50s, according to the report). Tablet usage for social purposes doubled. Over a third of people are now using them to access social stuff.

Finally, here's what Sensis, which as its core business helps Australian's find buy and sell, wants to get across with the study: Small firms need to think more socially.

But despite social media growth, businesses are spending less. Much less.

Sensis pointed out that investment in social media decreased in the last year, with small businesses spending on average $1,970 (down from $3,410 in 2012) and medium businesses $11,780 annually (down from $16,920 in 2012). What is more, around three quarters of firms are not measuing any return on investment of their social spend.

Local companies should think about that. And do discounts and giveaways via social, hinted the report, which polled just under 1,000 Australian consumers and just under 2,000 businesses.

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