SkyQuest Survey: Spending on Social Media Management Increased By 27% in One Year

Consulting firm SkyQuest Technology recently released findings from a study indicating that spending on social media management increased by 27 percent in just one year.

The study found that over half of all online adults (65 percent) use social media sites like Facebook, Linkedin, Twitter, and Instagram. This is a significant increase from three years ago when the number was only 47 percent. This is a clear indicator that small businesses need to be taking their social media practices seriously, especially if they hope to compete with bigger players with massive social media marketing budgets.

"With the growth of social media management market, businesses have realized the importance of having a social media management plan in place," SkyQuest said in a press release. "Not only is it important to have a plan in place to ensure that the company’s social media presence is managed effectively and consistent, but it has also become essential to track and analyze social media activity in order to improve marketing strategy. A well-executed social media management plan helps the businesses control the message they are putting out there, as well as identify any potential issues or gaps in their strategies."

According to the study, 55 percent of adult women and 78 percent of adult men use social media, but businesses are still slow at learning how to use it effectively. It can be helpful to have someone dedicated to managing social media accounts, for example, but businesses are slow to make that leap. Only 36 percent of companies polled employ a full-time person to manage their social media accounts, while 43 percent consider outsourcing their social media management duties. Twenty-four percent have contracted out their social media management services already.

SkyQuest found that 73 percent of social media management professionals have implemented or plan to implement an automated Twitter management solution in the next 12 months, while 70 percent use social media platforms more than eight hours per day. The top priorities of such professionals are creating content (68 percent) and measuring engagement (66 percent).

Eighty-four percent report achieving at least one objective they set for their organization’s social media strategy. Only six percent reported a negative experience. Sixty-three percent have a formal strategy for managing social media activities, but only 34 percent feel that their strategy reflects the full breadth of their company’s social media presence.

Seventy-eight percent said it is difficult to track performance against objectives on social media, which might be a significant factor in businesses’ hesitancy in dedicating more resources to social media strategy. Still, only 38 percent believe employees are using social media effectively in support of their company goals.

Regardless, spending has been on the rise. SkyQuest attributes this to a large number of businesses having yet to fully embrace social media, with those who have only begun to use it needing assistance in managing their accounts.

The cost for a single service in the social media management market ranges from $100 to $50,000. With greater levels of customization and automation, the prices get more expensive. The study found that 61 percent of businesses that have used a social media management service say they’ve spent over $1,000 per month on the service. The top reasons for spending more are increased engagement (62 percent) and increased follower growth (61 percent).