It seems that Canadian tech companies are putting in the effort when it comes to social media, but the returns might not be up to par.
A new report from The Impact Centre at the University of Toronto shows that Canadian tech companies are creating and posting content on social media more than several other innovation hotbeds around the world, but those posts are lacking when it comes to engagement.
The study looked at 113 random internet software businesses in five jurisdictions: Canada, California, New York, Massachusetts and the U.K, and they were rated and ranked in terms of social media efforts and results. The companies all have accumulated between $5 and $20 million in total funding and last obtained funding in 2016.
“Social media channels have become a very effective and inexpensive way for firms to connect with existing and prospective customers and are considered a must for fledgling businesses,” reads the report. “For most cloud-based software companies, social media is the primary method for lead generation, and thus the first part of the sales funnel. Success with social media then drives customer awareness, adoption, and the development and growth of revenue.”
In order really gauge the effort of companies when it comes to social media, the report looked at activity on LinkedIn, Twitter, Facebook, YouTube, Instagram and blogs. Canada ranks first in effort as gauged by overall activity form the companies on those platforms, but only fourth on results—meaning the ability to generate engagement with followers and other observers.
The report admittedly brings up more questions than it answers. It identifies that Canadian companies are producing good content—and lots of it—but failing to turn that into leads and profit. The big question then revolves around improving these processes.
Overall, Canadian tech companies do well (placing in the top two out of the five jurisdictions) when it comes to engagement through LinkedIn and Instagram, but they fall far behind in other social media channels.
The study is not definitive by any means and only samples a small number of companies with a certain amount of funding, but it does paint an interesting picture in terms of how different cities and counties address social media. Canada is creating a lot of content, but their tech companies may need to do more to engage the followers they have and turn those numbers into profit.