New study looks at small business use of SEO social media and security
Small business is the engine that drives the global economy. According the Small Business Administration, small business represents 99.7 percent of all employer firms. Since 1995, small businesses have generated 64 percent of new jobs, and 44 percent of the total payroll in the United States. One would expect this influence to extend online. However, it is the larger companies that have come to dominate the online space. Granted, many of these companies started small and just grew to become the 800-pound Gorillas that they are today. A new study looks at small business use of SEO social media and security and looks at what is ahead in 2017.
The Internet 20 years later
When Amazon, EBay, and Google first came on the scene, the Internet was an experiment. Fast forward twenty years to today and 8 in 10 Americans have made an online purchase while 15 percent of consumers make an online purchase on a weekly basis, according to a new study by the Pew Research Center.
How have small businesses done in leveraging the Internet to their advantage? To compete with their larger competitors, many small business owners have adopted some of the strategies and tactics pioneered by the giants in the Industry. However, scaling the Internet down to a size that every small business owner can take advantage of has its own set of challenges.
There are also huge opportunities. The Internet is the great ‘equalizer’ in that it is the best platform for small business to compete with big business. A smart and very aggressive small business can compete with larger competitors online and possibly win. With excellent content and creative marketing, a small business can create a great deal more ‘buzz’ than a larger company. Many small companies have become large with just this strategy.
Web.com Small Business Digital Trends report
The Web.com Small Business Digital Trends report by hosting provider, Web.com reveals new online marketing trends and explores how small business owners are using the Internet to grow their revenue and reputations. A survey was sent out to small business owners with e-commerce websites and service providers such as welders, artists, dentists, hair salon owners, dry cleaners, construction owners and more. Respondents listed their plans for 2017 in addition to what is working and what is not.
Small Business confidence in their online presence
While many small business owners are embracing digital marketing, only 54 percent report that they are confident that their online presence is doing what it is supposed to be doing. Closer analysis reveals that small business owners are not yet tapping the full potential of what digital marketing has to offer. Specifically:
- 42 percent of small business owners admin that they don’t use a robust website and social media channels to market their local business.
- Search engine optimization is a low priority for small business owners with only 17 percent planning to invest in it in 2017.
- A report from online security company, WhiteHat found that that 86 percent of all websites that they tested had at least one vulnerability.
- Only 43 percent of small business owners surveyed say they don’t have plans to change or improve their online presence.
Small business use of SEO
Fewer than 6 percent of respondents say that search engine optimization is a challenge for their business. Only 17 percent state that they will be adding SEO to their online marketing mix in 2017. This surprisingly low response can possibly be attributed to how the questions were asked or the respondents understanding of the content matter.
These results stand in stark contrast to the overall effectiveness of SEO. For example, online products and services influence consumers a great deal. The PEW Research Center reports that 82 percent of U.S. adults say they check online reviews before making a first time purchase. Another group, marketers see SEO as becoming more effective with 82 percent reporting effectiveness is on the rise and 43% of this group stating effectiveness is increasing significantly.
Small business use of social media
Social media seems to be working better for small business respondents. 88 percent of small business owners say that they use social media. 54 percent of respondents say that they will be investing in social media in 2017.
Some 85 percent of respondents said that they experienced some kind of challenge when trying to market their business on social media. Reported challenges include:
- Reputational risk concerns (15% of respondents)
- Too much upkeep and the challenge of developing new content (14%)
- Lack of understanding of social media (13%)
- Knowledge of how to integrate social media channels into their business (10%)
A full 23 percent of respondents said that they use their personal social media profiles to market their business. Additionally, 16 percent said that they are on social media but don’t have a website for their business.
The challenge of managing it all
As would be expected, small business owners are very busy running their business, often having to wear many different hats. When asked about the biggest challenge they face in running their online presence, the big winner for small business owners was overwhelmingly managing content. This is understandable when you consider that 68 percent of respondents are designing, building and managing their web presence themselves. Only 9 percent of respondents are outsourcing their online presence, while 22 percent have help from family or friends.
When asked about specific areas where small business owners were challenged when managing their online presence, respondents reported functionality, design, and security. This is not surprising considering the expertise needed to do each category effectively. It takes a great of time and practice to develop these skill sets. Most small business owners are preoccupied running their businesses to learn about these things.
Security is a top priority
Earlier this week, I wrote about a vulnerability in WordPress that led to millions of websites being defaced by hackers. When polled, small business owners felt that they were doing a good job handling online security, with 81 percent of respondents rating themselves a 4 or 5 on a 5-point scale with 5 being highest.
The current state of cybersecurity begs the question of whether or not respondents in this survey are secure or not. The overall sense of security registered by small business respondents contrast with the current state of cybersecurity reported by leading experts. Symantec’s 2016 Internet Security Threat Report shows that 43 percent of cyberattacks target small businesses. Since security breaches are often undetected, many small businesses may not know that they are vulnerable.
Specific security concerns cited by respondents include website crashes and the theft of customer data. Small business owners are taking steps to mitigate these risks by updating their passwords and using anti-virus software but the big questions remains, is this sufficient to reduce the risk of a successful attack.
A competitive advantage
A large percentage of small business respondents reported that they perceive their large business competitors to have a competitive advantage in their ability to offer better pricing, having a wider reach, and their ability to respond to the needs of the marketplace. This is not surprising as these results are to be expected.
Competitive advantages are not limited to only large to just large businesses. Small businesses have a competitive advantage in the form of a personal connection with their customers. Often times, customers of the small business owner are neighbors, friends and family. This in part explains the high adoption rates for social media by small business respondents. One of the main advantages of social media is the ability to build upon a personal connection that they already have with their customers.
Conclusion
Overall, small business respondents are positive about 2017 as more than 86 percent believe that their revenue will grow and 62 percent believe that the entire economy will improve. Interestingly enough, when asked what grades they believe their customers would give their websites, only 25 percent of respondents said that customers would give them an ‘A’. This indicates that there is more work to be done.
Summarizing the study, most small business owners find it easier to get their business online. Content management and content development are top priorities in 2017. Several respondents also list e-commerce initiatives as a priority as well as security.
Going forward, we hope to address the small business needs pointed out in this study. We are in the process of introducing an affordable WordPress maintenance service that addresses a large part of the security piece. Several WordPress plugins are in the final stages of development that are focused on helping small business owners improve their local SEO. One plugin is available that helps mobile users call a local business with two more in testing that are also focused on local SEO.
Overall, there is room to help small business use SEO, social media and security more effectively. We hope to do just that in 2017. We can also help with:
Content Marketing for Local Business
Digital Marketing for Local Business
Sales Funnels for Local Business