By Cutter Mitchell ( guest post for 4entrepreneur.net )

With a slumping economy it goes without saying, even if it has been said, less money is being spent. For businesses this means less is being invested into advertising. This does not mean the budgets are entirely gone, companies are just being smarter with what funds they have.

A recent survey compiled by WeCanDo.biz, BusinessZone.co.uk, and UK Business Forums gives some insight as to where companies have reallocated at least a portion of their advertising spending.

Networking mediums like Social Media are becoming the new replacements for these lost advertising dollars. They are not only becoming replacements but the remaining dollars to be spent on advertising are being invested into these networking mediums. Of the 300 business owners participating in the survey, 52 percent said they plan on using these mediums more to promote their brands and businesses in 2009.

This should not surprise us, as the more traditional ways of networking/marketing/advertising are being cast to the side for the much more effective method of digital grass roots campaigns. Meaning, the utilization of social media, with a peppering of new media, has proven to do more for companies (particularly those in start-up mode) than any sort of traditional media.

The reason a digital grass roots campaign works better and harder for businesses is because it allows these companies to directly reach their clients and potential customers. They do not have to relay anything through a middle man or third party, where the message can get cluttered. Instead, using social media and other networking mediums, these same companies have a direct line into their market.

“The survey shows that the key driver behind online networking for the majority of the business community is a desire to win new customers or clients with a third saying they are achieving their objectives. In addition, 67% believe the activity has brought them closer to their target market and 52% plan on doing more of it 2009.”

But if you think there are ample ways to accomplish this business to consumer connection already out there, think again. The survey went on to state that sites that one might think of, like LinkedIn, may not be as helpful as once thought. Or at least helpful to businesses.

“That’s not to say though that all professional communities are relevant to small companies. LinkedIn, for example, is often cited as a useful resource but in our research respondents rank career advancement, the primary focus of LinkedIn, as the least important reason for networking online.”

However, there is a place for these types of networks. The survey, though it may be bias, did say the less main stream type of networks with a focus on business tend to help companies, entrepreneurs, and small organizations target consumers in their market.

Regardless of this one set of findings many social media marketing expects still hold that there is a lot to be gained from have a presence on main stream sites like Facebook and Twitter. One might even go as far as to say these sites are more powerful than any one of the lesser know sites, with respects to the ability to increase viral business.

Posted via email from Jay’s posterous