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RBS predicts that social media will be major growth area for business next year

By Hamish Mackay

December 26, 2011 | 2 min read

The Royal Bank of Scotland is predicting that social media will be a major growth area for business next year.

According to a report in The Scotsman by business editor, Terry Murden, almost nine in ten businesses say they will be investing more in social media.

Reports Murden: “Among companies with a turnover of at least £25 million, 87 per cent said they saw it as a cost-effective communications tool with more than a third (39 per cent) saying it improved their commercial or reputational standing.

“The research, by Royal Bank of Scotland Corporate & Institutional Banking, also shows that senior executives are making wider use of tablet computers with nearly half (47 per cent) using tablets regularly.”

John Dixon, head of technology, media and telecoms from Royal Bank of Scotland CIB, is quoted as saying: “UK businesses clearly understand the importance of social media.

“It is an effective and cost-effective tool, and its increased popularity comes at a time of increased pressures on marketing. The challenge is for firms to maximise their investments beyond 2012.”

The RBS reports say that 25% of firms increasing social media spend said that it resulted in a positive impact on the brand.

However, not all firms have a clear social media strategy. Some 39 % of firms looking to increase spend in this area say they are doing so to simply keep up with industry trends and/or competitor activity.

Of the 13 % looking to cut social media spending next year, 54% said this was because of budget restrictions while 27% saw no return on investment.

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