May 28, 2012

The effect of social media on brands may be difficult to assess precisely but it is a fact that businesses these days rarely skip the channel in their marketing mix. In fact, its importance is set to grow even further as social networks will become the second most effective tool for acquiring new customers over the next two years, a new report by global workforce provider Regus has found.

The report, based on data collected from 2,500 UK businesses, reveals that over three-quarters of those polled believe face-to-face will remain the single most appropriate way of finding new customers over the next couple of years. Social media has improved its image among managers, with 58% agreeing that it is a good means of expanding the consumer base, up from 43% in the previous three years. Online advertising has dropped to third place, while more conventional channels, like traditional advertising, direct marketing and telemarketing, have all lost ground.

Interestingly, public speaking at key events appears to be on the rise and a significant proportion of those surveyed think it will become more prominent over the next two years, highlighting the impact of face-to-face communication.

According to Steve Purdy, UK managing director at Regus, businesses that have not yet exploited the full power of social networks as a marketing channel should start building up a presence or risk losing some of their customers over the next few years.