Firms need social media, say experts

Social media marketing is being underused by firms due to reluctance from bosses, who are ignoring its potential, analysts have warned.

In a recent study, Ovum, a private tech analysis company, suggested that bosses are often unaware of the value of social media in connecting with consumers. Executives are therefore slow to adopt the technology, despite its low relative cost.

Margaret Goldberg, Ovum IT services analyst, said: “Social media often only requires a miniscule fraction of the seats and revenue required for traditional channels, yet it can provide enterprises with valuable real-time market data. However, enterprise executives are yet to see this value.”

The analysts warn that if executives fail to learn about social networking they could lose out to competitors and see their profits drop.

Businesses could be at a potential disadvantage if they lack the relationships with consumers and insightful data that a social media strategy provides, it is feared.