A new report from the Royal Bank Of Scotland (RBS) has revealed that medium to large-sized businesses are betting on social media to play a significant role in their marketing plans next year, with almost nine out of ten corporations saying that they will maintain or spend more on their social media budget for 2012.
The survey, commissioned by RBS’ Corporate And Institutional Banking arm, polled more than 200 finance directors, CEOs, CFOs, COOs, managers and treasurers, between October 11-26.
Some 87 percent of companies with a turnover of £25 million ($40 million) or more stated that social media provided a cost-effective communications tool, and 39 percent cited that it helped improve their reputation.
The report also noted that while 90 percent of the businesses polled are budgeting for less than a 5 percent rise in advertising spend, or even freezing their budget entirely, they will continue to invest in social media.
“UK businesses clearly understand the importance of social media,” said John Dixon, head of technology, media and telecoms from Royal Bank of Scotland CIB. “It is an effective and cost-effective tool, and its increased popularity comes at a time of increased pressures on marketing. The challenge is for firms to maximise their investments beyond 2012.”
Of the 13 percent looking to cut social media spend in 2012, 54 percent are doing so because of budget restrictions, and 27 percent because they saw no return on investment.