Are you using Facebook to acquire customers for your small business?
Do you struggle to measure the return on your social media marketing investment?
Despite a lack of concrete proof of sales, small businesses are devoting time and dollars to Facebook marketing.
Research have shown that most Small Businesses don’t see a return from their Social Media efforts
In these series of articles you’ll discover findings from recent studies focused on Facebook marketing.
In April 2015, small business directory Manta surveyed 540 small business owners for their insights on social media return on investment (ROI). Fifty-nine percent report that they did not see ROI from their social media activities. Because the vast majority of small businesses puts most, if not the entire, social media budget into Facebook, this article focuses on that channel.
Of the remaining 41% reporting that they did see returns, 17% received less than $100, and 57% received less than $1,000 for their energy and budget. One-third of that 41% (63 individuals) report outearning their social media marketing spend by more than $2,000.
Social Media Examiner’s 2015 Social Media Marketing Industry Report findings echo those in the Manta study. When the team asked 3,720 marketers whether their Facebook marketing is effective (which we can interpret as driving return to some extent), only 45% reported that it is. (Read here about how 60% of the respondents for the report were small business owners or executives. They either worked in companies with 2 to 10 employees or self-identified as solopreneurs.)
The report also reveals that just 33% of the self-employed described Facebook marketing efforts as effective. Larger businesses have a slightly higher regard for their Facebook marketing efforts, with 50% pleased with their Facebook returns. B2C marketers also have a more positive take than B2B, with 51% of B2C marketers finding Facebook effective, compared to just 36% of B2B respondents.
Key Takeaways: The significant 35% of respondents who are uncertain about whether their Facebook presence helps their business is telling. With barely enough time to keep up their Facebook page, small businesses typically lack the time and resources to gather the data needed to determine whether their Facebook efforts work.
Gathering data requires that either the business owner or staff member learns or understands Google Analytics and Facebook Insights. Both of these tools require time and effort.
Further, as Facebook’s former Global Head of SMB Marketing Chris Luo explains in his March 2015 Fast Company article, effective Facebook advertising is moving away from the simple updates and boosting that small businesses could master easily:
Facebook has also introduced new, more sophisticated, advertising tools to directly target any user on Facebook in their news feed, but for the most part, these tools are used by savvy direct marketers at mid-sized or larger companies and not small businesses.