San Francisco and Los Angeles top the list of U.S. cities with the most socially savvy small businesses, according to a new report released by business intelligence service Radius. New York didn’t even crack the top five, coming in seventh behind Seattle, San Diego and Chicago.
The San Francisco-based company, which rebranded as Radius from Fwix last month, has spent the last two years developing a technology to identify business names in content from across the web. The rankings ingest social media presences’ on Facebook and Twitter, check-in’s and reviews on Foursquare and Yelp, as well as recent daily deal activity for over 15 million SMBs across the US.
The study found that Grand Rapids and Oklahoma City have the highest percentage of SMBs with Facebook pages at 29% and 28% respectively. The number is a little less than half of what Borrell Associates estimated for the overall percent of SMBs that used Facebook as a promotional tool in 2011 (60.4%) and well below Merchant Circle’s figure in late 2011 (70.0%).
In an interesting note, Washington and Chicago, the home markets of LivingSocial and Groupon respectively, top the list in terms of daily deal penetration but at a remarkably low figure — less than 1% businesses in either city have ever run a daily deal. The low number is a great sign for the offers sector as new ventures look to expand into other local verticals that have largely remained untouched by promotions.
With Facebook set to make a big push in the promotions space over the next few months, the potential impact on the larger offers landscape could be quite substantial. Take Washington D.C. for example: according to the report, over 73,000 SMBs have a Facebook profile yet only 1,000 have run a recent deal. If Facebook is able to convert 5% of those businesses as Offers customers, they will have more than tripled the penetration of deals in the D.C. market. Self-serve offers models in particular (GrouponNow! included), appear positioned to see a lift from Facebook’s expansion as the social network educates business owners not only on the value of offers but around the dynamics of creating attractive, sustainable deals.