I was struck again recently by the tight correlation between growth companies and active social media use. Because the mega consumer product brands get so much attention – think Coca-Cola, McDonald’s, Chevy and Super Bowl — it’s easy to think large companies in general have embraced social media. The true pattern for business social media use is quite different.
The 2013 Inc. 500 and Social Media Study
For the seventh year in a row, the Center for Marketing Research at the University of Massachusetts Dartmouth released its annual in-depth study on the usage of social media in the fastest-growing companies in the US, the Inc. 500. The two-part research includes analysis of social media tools used by every company on the list, plus interviews with a random sample of executives that included 21 of the 22 industries on the list.
Center for Marketing Research at the University of Massachusetts Dartmouth
The key statistics in the report have been widely reported, yet as I read the full study more closely I noticed two things I had not read elsewhere: a comparison to Fortune 500 companies and the study’s conclusion about the role of social media use in fast-growing companies.
The comparison to the Fortune 500
“In 2007, the Center’s first study of this group and their use of social media was released and revealed that the Inc. 500 was outpacing the revenue based Fortune 500 in their use of social media. This trend has held steady for the past 7 years with the Inc. 500 continuously out blogging the Fortune 500.”
The report concludes:
“These fast growing US businesses are avid users of social media employing a range of tools to connect, engage, advertise and advocate. They are incorporating social media into their strategic planning and are looking ahead to the potential of mobile social commerce and promoted tweets.”
“Ultimately, the Inc. 500 are turning to social media platforms in increasing numbers to generate revenue, find new customers, create an identity and disseminate information.”
Do You Fit the Pattern?
A classic business mantra goes something like this: “Big companies are slow, bloated and rigid; Small companies are quick, lean and nimble.” But many times now, I’ve heard a busy small-to-midsize business CEO pressured by the demands of managing fast-growth resist dedicating the resources needed for social media to succeed while continuing to invest in traditional advertising and marketing channels.
Dramatic changes over the past 10 years have affected nearly every industry, and marketing communications is no exception. If yours is a fast-growing company that wants to keep growing, ask your team if you fit the pattern:
Are you an avid user of social media using a range of tools to connect, engage, advertise and advocate?
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photo: flickr license: CC attribution
