Many firms still hold back from social media marketing efforts

According to the American Express OPEN fall 2010 “Small Business Monitor,” small-business owners have dramatically upped their usage of social media for marketing in the past year.

While just one in 10 business owners reported using social networking for marketing last year, 39% indicated they did in September 2010. The impetus is driving sales by connecting with consumers. Facebook was the clear leader among small-business owners, with 27% using the site to attract new customers, vs. 9% using LinkedIn, 8% using Twitter and 5% maintaining a blog.

American Express found that among businesses that use social media marketing, 39% said it increased the exposure of their business. But the second most common response, selected by 17%, was that social media tools had not helped them.