2012 Inc 500 Social Media Settles In. [INSIGHT & INFOGRAPHIC]

The Center for Marketing Research at the University of Massachusetts Dartmouth recently conducted its annual in-depth and statistically valid study on the usage of social media in fast-growing corporations. This new study revisits the Center’s work on the Inc. 500 social media usage for the sixth consecutive year, making it a valuable and rare longitudinal study of corporate use of these new technologies. The Inc. 500 come from a list of the fastest-growing private U.S. companies compiled annually by Inc. Magazine. For details about the 2012 Inc. 500 and the complete directory of the included companies, please visit Inc.

In 2007, the Center’s first study of this group and their use of social media was released and revealed that the Inc. 500 was outpacing the revenue based Fortune 500 in their use of social media. For example, at that time, research showed that 8% of the Fortune 500 companies were blogging compared to 19% of the Inc. 500. This difference continued in all subsequent years with the Inc. 500 out blogging the Fortune 500. The most recent data on both groups suggests that pattern holds with 44% of the 2012 Inc. 500 blogging and just 23% of the Fortune 500.

As in the earlier studies, the 2012 study, under the direction of researchers Nora Ganim Barnes, and Ava Lescault is the result of a nationwide telephone survey of those companies named by Inc. Magazine to the Inc. 500 list for 2012. All interviews took place in the fall of 2012. The list was released in the September 2012 issue of Inc. Magazine. In this sixth iteration, thirty-four percent (170) of the Inc. 500 participated, making this research statistically valid at +/- 6%.

This research proves once again that social media has penetrated parts of the business world at a tremendous speed. It also indicates that corporate usage of social media within the Inc. 500 has changed in the past 12 months. We are now seeing the incorporation of new platforms and tools including FourSquare and Pinterest, an increased use of LinkedIn and Blogging, a drop in the use of YouTube and Facebook. Ninety-two percent of the Inc. 500 are using at least one of the tools studied.

The respondents in this study, as in the previous studies, are diverse. They represent 25 different industries including 14 of the top 25, and 34 of the top 100 companies from the 2012 Inc. 500 list. They report annual revenues of $1m to over $300m with 42% of them falling between $3m-$10m. Seventy-eight percent of the sample was founded after 2005. Over two-thirds have 1-50 employees.

Changes in industry composition of the Inc. 500 over the past three years are reflected in our sample and have impacted our overall statistics in distinct ways. There has been an increase in companies providing Government Services (a result of some of the Obama initiatives). These companies increased their presence in the Inc. 500 in 2010, 2011 and again in 2012 and are less likely to use certain social media tools.

The 170 company executives who responded were asked the same detailed questions concerning their usage and measurement of social media that were asked of the Inc. 500 in earlier years with minor exceptions. The original 2007 questions probed the familiarity of respondents with six prominent social media tools (blogging, podcasting, online video, social networking, message boards and wikis). As familiarity became almost ubiquitous, studies began to focus more on adoption, measuring and monitoring.

Changes over the years include dropping wikis (used more as a collaboration tool than a communications/ engagement tool) and changing the social networking category into specific tools and platforms.

In addition to questions about current usage, the responding marketing executives were asked about the impact social media has had on their growth, if the CEO provides content, how the social media function is staffed and if social media produces ROI.

The study also includes questions on the likely change in investment their company might be making in social media for the upcoming year. Additional questions about the monitoring of social media and the handling of online crisis were posed.

A few findings worth highlighting:

Marketing Departments are assuming responsibility for Social Media function and planning. The social media function has been housed in PR, HR, Marketing, Communications, or independently, since its emergence in business. This study shows a tendency for Marketing Departments to house and manage the social media efforts among the Inc. 500.

Blogging jumps among the Inc. 500. Thirty-seven percent of the 2011 Inc. 500 had a corporate blog. In this new 2012 study, the use of blogging jumped to 44%, increasing by 7% after remaining stagnant for years. Sixty-three percent of CEO’s report contributing to content as this mature tool enjoys a bit of a resurgence.

LinkedIn leads the way. The platform most utilized by the 2012 Inc. 500 is LinkedIn with 81% of companies using it. It has replaced Facebook as the tool of choice for these fast growing companies. The use of Facebook has dropped 7% in the past year while both LinkedIn and Twitter have gained users. In 2011, Facebook was being used by 74% of the Inc. 500 and Twitter by 64%. In 2012, 67% of the Inc. 500 used each of them. 28% are now using Foursquare and 18% use Pinterest.

Fewer Companies Will Increase Investments in Social Media. Seventy-one percent of the 2011 Inc. 500 planned to increase their investment in social media. The latest data shows a dramatic drop to 44% now looking to spend more on social media. Forty-one percent (vs. 25% last year) say their level of investment will remain the same as last year. An additional 15% were unsure of how their social media investment might change. It may be that social media enjoyed an infusion of resources over the past few years and is now leveling off. At the same time the commitment to maintaining the current level of investment is strong.

Monitoring the social media buzz falls off. The 2011 study shows 68% of companies were monitoring online conversations about their names, products or brands, down from 70% in 2010. This year that number declined again to 63%. The Inc. 500 appears to be growing less attentive to their monitoring activity. This will have important consequences should they increase their investment in the social media area. Regardless of how they choose to converse with their constituents online, they will need to be aware of conversation about their company, their products and their brands.

ROI Linked to Reducing Costs for Recruiting. One third of the Inc. 500 report the ability to financially determine the return on their social media investment. Of those, 19% believe they have cut costs in their recruiting efforts due to their social media investments. This may also be tied to the increased use of the social network LinkedIn which has become well known for its success with professional recruitment.

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http://www.umassd.edu/media/umassdartmouth/cmr/studiesandresearch/images/2012inc500/Inc500Infographic.pdf>