A report by the Robert H. Smith School of Business at the University of Maryland shows that American small businesses’ use of social media has doubled in the past year, from 12% to 24%.

According to the report, titled the Small Business Success Index, one in five small businesses are adopting social media into their business plans. The most popular tools are Facebook and LinkedIn profiles and blogs.

Download the full SBSI as a PDF at Network Solutions.

The report also includes a testimonial from an eye doctor who sees the benefits of social media more clearly than most (wa-waaa), and who we kind of want to hug.

“In order to meet the growing challenges of a tough market last year, I was forced to consider alternative options to keep my business visible,” says small business owner Dr. Alan Glazier, CEO and Founder, Shady Grove Eye and Vision Care. “With a very small investment in social media marketing, I was able to generate new business opportunities. Our Google ranking is consistently number one for many of the phrases people use to search for eye doctors in and around my city and we have received a “bump” in terms of new visitors to the site. My blog has been picked up by different news sources and led to media interviews. I am now recognized as a thought leader in social networking within my profession and lastly but most importantly, my marketing budget has been reduced by more than 80%.”

According to the index, 61% of businesses actively use social networking sites tools like Facebook and LinkedIn as a means of attracting new customers. 39% have created blogs about their areas of expertise, like the good doctor above. Only 16% use Twitter.

It’s interesting to note that 50% of the small businesses surveyed said that adopting social media took more time than expected. Hey — I sympathize. Generating content takes work! (And if you need help …)

In light of the economic downturn, many businesses praised social media as a cheaper means of marketing than traditional advertising. And while 17% found that engagement in social networking with customers created a forum for criticism, only 6% felt that it had hurt them.

I guess I shouldn’t be surprised that the overall number — 24% — is kind of low low. Though it seems like many mom-n-pops have taken the time to set up at least a Facebook fan page, there are still tons of small businesses that have yet to begin beefing up their profiles and cranking out content.

And though 45% said that social media engagement would become profitable “in the next 12 months,” many small businesses are still pouring cash down the drain of print advertising. Sigh. They can’t all be like Dr. Alan.

Were you surprised by the report’s findings?

Further Reading: John Jantsch’s small-business-focused Duct Tape Marketing blog.

(Via Mashable)

One of the great benefits of Facebook is that it helps businesses, especially small ones, connect with customers. Shoot, given that the site just broke the 400 million user threshold, it helps you connect with pretty much the whole world.

As CEOs of big corps on down to mom and pops have caught on, setting up a Facebook fan page is the way to go — as opposed to a group (too limited) or personal profile (limited, but also outlawed).

But as I’ve been more actively seeking out my favorite local businesses’ pages the past few months, I’ve noticed a few things. Things like…

The weather outside is frightful, but our X is so delightful! Come in and try our X.

It’s Thursday! That means big savings on X!!!!

It’s great that so many businesses and orgs recognize the need to use Facebook to reach customers and keep them up to date. And we understand that hardworking proprietors don’t have time to put a lot of thought into their posts. Nor can they afford to pay a part-timer to monitor discussion on social platforms — much less hire an agency to develop a grand campaign*. They’re busting their humps to meet the bottom line and make sure that they’re doing everything they can to appeal to customers in person and online. I salute them for that. That’s exactly what they should be doing.

But the truth is, trickling out sales information and blurting proprietary updates is not the best way to connect. Maybe someone will be persuaded to grab five friends and head to your bar because you posted “HEY EVERYONE WE JUST GOT THE NEW X ON TAP SPECIAL TONIGHT $3!!!!!” (And if you can find that person, you should let her and all her friends drink for free.)

Most people seek out your business on Facebook because they want to interact with you. They want to look at photos and videos and hear what you think the best new X on the market is or how you like working in a city with so many great X’s. Most of all, they want to be heard. Not just by other fans but by you.

Don’t X out our eyes with whatever it is you want us to buy or do after we walk in the door. Listen to what we’re saying, then tailor your status updates accordingly. Jump into threads and answer questions.

Give value.

Ask questions.

And if we aren’t talking at all? If you’ve been posting your lunch specials every day for months now, you’re getting nary a “like,” and you’re about ready to ditch this Facebook crap?

Well, before you do that, put down the megaphone and have a regular conversation with your customers. That’s what we’re here to do.

*We’re cheap!