NZ business lagging with social media

New Zealand businesses lag behind the world in the use of social media, according to Grant Thornton’s International Business Report.

The research found 38% of businesses in New Zealand used social media in some capacity compared with a global average of 43%. 

New Zealand also trailed Australia at 44.9% and the United States at 46%, Grant Thornton New Zealand partner Greg Thompson said.

New Zealand was ahead of the United Kingdom on 32.2%, the research found, but behind Latin America where 52.7% of businesses used social media. Brazil, Russia, India and China, the BRIC countries, were at 50%, he said.

The key reasons New Zealand businesses use social media is for advertising at 30%, compared with a global result of 53%. Recruitment came in at 20% for New Zealand companies compared with 43% globally, communication with suppliers at 6%, communication with customers at 24% compared with 51% globally, with staff communications at 12%.

Communicating with customers came in as the key practice in ASEAN at 65% while advertising was the most common use in the European Union at 64% and recruitment for North America at 63%.

The International Business Report (IBR) is conducted mainly by telephone interview with over 11,500 businesses per year across 39 economies.

Wake up call
Mr Thompson said the results were a wake-up call to business leaders reluctant to embrace digital opportunities. 

“A recent study by Cisco Systems Inc.’s Economics & Research Practice estimated that global e-commerce, including travel and auto purchases as well as online retail sales, will increase 13.5% annually for the next four years and reach an estimated USD1.4 trillion in 2015.”

Social media was about communicating, sharing information and building relationships with key target audiences.  The IBR results showed businesses in emerging markets were taking to social media faster than peers in mature markets, Mr Thompson said.

“They appear to have much more faith in the impact that an active social media presence can have on their relationships with clients, with customers, and ultimately on their bottom line.”

Social media was of particular importance to New Zealand businesses due to their geographic location, Mr Thompson said.  He said while many were understandably preoccupied with the current economic difficulties, they should not lose sight of social media’s long term opportunities.

“It is inexpensive and far reaching, allowing remotely located businesses to stay in touch with customers and suppliers.”

However Mr Thompson said that it was important not to decide to use social media just because it was the next big thing.

He said it was important to ensure it met marketing and communication objectives, and to make sure a business was able to manage and maintain these communications.  Businesses needed to keep in mind that content, once published online, would always be visible somehow, he said.

“Even deleted social media accounts will turn up in search engine results as they are archived by a server network.”