Study: Fastest Growing US Companies Rapidly Adopting Social Media
A one year follow up on a study of social media adoption at 500 of the fastest growing companies in the US has found that familiarity with and use of blogs, podcasting, wikis, online video and social networking has skyrocketed in 2008 to nearly double what it was in 2007. 77% of respondents now report at least some use of a social media tool in their business.
The University of Massachusetts Dartmouth Center for Marketing Research performed the study for Inc. Magazine and their findings confirm what previous studies have argued as well: social media use is now a major, mainstream activity.
The Findings
The study was written up on Robin Good's excellent blog Master New Media.
According to the study's authors, "26% of respondents in 2007 felt that social media is "very important" to their business and marketing strategy. That figure rose to 44% in approximately one year. It is clear that this group of fast-growing companies considers the use of social media as a central part of its strategic plan."
Social networking is the most familiar of the technologies. In 2007, wikis were the least familiar but they have since leapfrogged over podcasting.
It's notable that the study's authors found much more extensive use and growth in use in the fastest growing 500 US companies than they found in the Fortune 500, the largest companies. It would be a logical fallacy to argue that the fastest growing companies are growing fastest because of their use of social media, but it could be a factor. It could also be the case that insurgent companies have a greater incentive and proclivity to experiment than incumbent industry leaders.
Three interesting charts from the study can be found below, followed by links to related studies and a few thoughts.
Related recent studies include Universal McCann's findings that half of adults in the US now use some form of social media online and the April prediction from Forrester Research that "Enterprise 2.0" will become a $4.6 billion industry over the next 5 years.
What does this mean? It means that when you tell people you write, read or listen to blogs, wikis, podcasts, social networks and online video - if they give you a funny look, it is now officially them that's a freak, not you. Are these tools really as useful as so many people appear to believe they are? That's another question, but at least we're getting a healthy number of people and businesses trying them out.
Another relevant data point to keep in mind might be analyst firm Gartner's "Hype Cycle," though. If this graph accurately expresses business sentiment then adoption doesn't equal satisfaction. Qualitative analyst studies like this are always very controversial, though.
See Master New Media for the full write up on the Inc. 500 report.
Top image from Robert Sanzalone.
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Nice. I think what cracks me up the most is that message boards have such a low number. I mean, come on - forums?! They have been around since ages, how can they not be on the radar? :)
Interesting! I hope eventually there will be a study for NPOs, too.
Great Insight... Being a web development company it very useful information for us, not only for marketing strategy, but also to show the clients who still dont understand meaning of 'next level of Web'. Thanks
Good stuff -- thanks! In order to reach enlightenment and productivity, we are going to need to see even more integration of all these apps and sites. Giving the user the capability to seamlessly integrate and use these resources thereby enhancing their lives --in a manner they deem valuable-- will ensure both continued usage and continued growth.
I enjoyed the graph - in particular, the Trough of Disillusionment. Reminds me of the Pit of Despair from The Princess Bride.
I wonder how all these percentages will adjust by next year?
Anyway, thanks - I sent the link to my co-workers. :)
Very interesting! I'm glad it finally hit the US.
I wonder if there is a study like this for Europe? Things here are moving much slower and I guess I looks totally different.
Do you have any data about Europe?
Excellent Post. Business usually are a bit slower that other at take-up and dropping idea's.
@Philipp Sauber:
The closest study to this in Europe is the one my company is conducting on social media usage amongst FTSE 100 companies in the UK.
http://www.realfresh.tv/introduction-to-study-on-social-media-usage-amongst-ftse-100-companies/
The FTSE 100 index comprises the 100 most highly capitalised blue chip companies on the London Stock Exchange, representing approximately 81% of the UK market.
We are catching up... slowly but surely.
This is great information that I will use to help educate the businesses I work with. Many small businesses are starting to notice what's going on with social media/networking and they're trying to understand how it might help them. Bravo:Smart Web Design is offering a free Web 2.0 seminar in Michigan and we will be using this posting as a great example!
Just think of the impact these figures will have on the traditional media. For it is the first indication, other than revenue, that a magazine's customers are now moving as fast as its readers into the digital world.
I totally agree with the content. We; as a company, have been socializing for the last couple months and our visitor traffic has went 30-50% up, which is an amazing result.
Also read Josh Bernhoff and Charlene Li, "Harnessing the Power of the Oh-So-Social Web" (published in MIT Sloan Management Review, Spring 2008). What surprised me most in their article - and I miss this info in the diagrams above - is the numbers on the adoption of RSS. I wrote about this on my blog. I find understanding and using RSS is a key issues for social media adoption. According to the numbers Bernhoff en Li show, we have lots of work to do!
Very interesting. I am curious about the rest of the world.Is there any study showing fastest growing companies in the world and their reaction to social media?