Priming the Economic Engine: How Social Media is Driving Growth for Small and Medium Businesses (SMBs)

Commissioned study conducted by:

Priming the Economic Engine How Social Media is Driving Growth for Small and Medium Businesses (SMBs)

1

Why should you care about SMBs?

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SMBs contribute $5.5 trillion in annual revenue.

Small businesses create seven of every ten new jobs.

Young firms in growth mode are

the largest contributors to

job growth.

1

2

3

Most SMBs have already adopted social media

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81% of SMBs are Current Users of Social Media

The #1 challenge for SMBs is finding new customers

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65% State that attracting new customers is their top business challenge

61% Find social media useful

in gaining new customers

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SMBs use social media to learn and share resources

TOP REASONS FOR LEARNING*

Access a network of peers

Learn from industry experts

Obtain insights and best practices

1

2

3

Use Social Media for Learning

49%

5 *Base: Current Social Media Users

Report Increased Social Media Spend

Hyper growth and increased spend on social media are strongly correlated

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Hyper Growth

73%

Non-Growth

42%

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47%

57%

59%

72%

73%

Social media is a top channel where SMBs in hyper growth have increased spend

Base: Current Social Media Users ©2013 LinkedIn Corporation. All Rights Reserved. 7

% of Hyper Growth SMBs Reporting Increased Spend

Social Media and Social Ads

Email Marketing

Events

Online Ads

Offline Ads

TOP REASONS

Keep up-to-date on financial trends

Gather preliminary financial info

Seek advice on a financial decision

1

2

3

SMBs leverage social media for financial services

Have Used Social Media for Finance-Related

Reasons

68%

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Social media helps drive action

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Path to Purchase

DISCOVERY Gather info /

stay up-to-date

CONSIDERATION Seek advice / info to make a

purchase

DRIVEN TO PURCHASE

37%

DRIVEN TO ACTION (Learn / Discuss / Purchase)

93%

SMBs want best practices and how-to guides

10 *Base:: Current Social Media Users **Base: Those who expected info

Top 5 Types of Finance Content expected on social but not received*

29%

22%

21%

20%

16%

Best practices, how-to guides, checklists

New innovation and technology developments

New product information

Company background

Industry news/strategy information

29%

22%

21%

20%

16%

Best practices, how-to guides, checklists

New innovation and technology developments

New product information

Company background

Industry news/strategy information

LinkedIn is where SMBs are most open to financial info

11 *Base: Current Users of Each Social Media Site ©2013 LinkedIn Corporation. All Rights Reserved.

Openness to Receiving Financial Information On Social Media Sites*

57% 49% 47% 47% 45% 38%

of hyper growth companies are receptive to finance content on LinkedIn

69%

Only LinkedIn provides the 4 C’s

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...providing a valuable resource across different activities in the SMB value chain

*Base: LinkedIn Users ©2013 LinkedIn Corporation. All Rights Reserved. 13

Open Innovation

Marketing & Sales

Sourcing

Customer Service

Best practices for marketers

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Target hyper growth companies

Build your credibility by facilitating open dialogue with SMBs

Enable learning throughout each phase of the purchase path

Provide resources for the entire SMB value chain

Commissioned study conducted by:

Thank you

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The majority of SMBs are growing and one in six are in hyper growth mode

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GROWTH Increase in Overall Revenue Compared to Last Year

48%

36%

16%

NON-GROWTH Decrease/No Change in

overall revenue YoY

HYPER GROWTH Significant Increase in Overall

Revenue YoY