LinkedIn, the world’s largest professional network, has released the findings of its first-ever study into the social media usage habits of small and medium businesses across the GCC region. More than 260 SMBs responded to the survey from across the six GCC member nations. Ninety-two per cent of respondents are already active on social media platforms, with a further five per cent currently ramping-up to establish presence.
The SMB sector in the Gulf has experienced a strong growth phase of late, with a clear majority of respondents reporting an increase in customer numbers (72 per cent), increased overall revenues (71 per cent), and increased overall profitability (63 per cent). Sixteen per cent of the SMBs surveyed are in ‘hyper-growth’, having experienced significant increase in overall revenue over the previous year, while 55 per cent were in a ‘growth’ phase.
Jake Thomas, Head of LinkedIn Marketing Solutions, MENA, said: “The fact that 71 per cent of SMBs across the Gulf states are in growth or hyper-growth mode says a lot about the competitive business climate in the region. This will only be amplified in the UAE with the programme announced by HH Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, which will see a Federal Council for SMBs, incentives for entrepreneurs, and relevant technical and marketing support, with a vision of strengthening SMBs to contribute to 70 per cent of the UAE’s GDP by 2021. Nearly all of these businesses are already unlocking the potential of social media channels for their continued success, showing a preference for the innovative tools offered by these platforms to effectively reach and engage customers, partners, and other stakeholders.”
The ease of generating business leads has been cited as the driving factor in this strong adoption of social media by SMBs, with 48 per cent saying that lead generation has contributed to a growth in customer numbers, and 43 per cent crediting enhanced lead generation as the driver for overall revenue growth. Social media advertising is also bringing SMBs online, with 34 per cent gaining customers through these campaigns, and 32 per cent directly linking their social ad spend to revenue growth.
In a stark departure from common fears around security of corporate information and network integrity on social media, more than 57 per cent of SMBs report using social media for at least one financial purpose.
SMBs in the growth and hyper-growth phases show no sign of reducing their social media investments. Hyper-growth SMB’s plan to increase their spending on lead generation (51 per cent) and broad social media spend (57 per cent). Forty-five per cent of SMBs in the growth phase will increase spend on lead generation, and 56 per cent will up investments on social media. Even SMBs in a non-growth plateau report a continued commitment to their social media investments, with 41 per cent planning to increase spend on lead generation, and 53 per cent upping their overall social media spend.
“Ninety per cent of the respondents who use social media in the course of their business have reported that LinkedIn is the platform they use the most. As the largest online professional network, LinkedIn is uniquely able to empower SMBs with lead generation, finding talent and reaching the right audiences when they are in a ‘business’ frame-of-mind. Our work with the business community in the region underlines this shift towards business on social media”, Thomas concluded.
