News Releases

• Three-quarters of business owners¹ using social media say it has benefited their business
• 30 per cent use it to gather ideas/suggestions from other people
• Business productivity gets boost from interactive idea generation and innovation – BMO Economics

TORONTO, September 27, 2010 - One of the world's hottest technology developments in the last decade is winning top marks from business owners who use it, according to a new BMO survey conducted by Harris/Decima.

Social media uses web technologies to create interaction online and promote dialogue among users. Innovative forms include social networking sites, podcasting, video sharing, and social bookmarking sites such as Digg, presenting opportunities for businesses to engage and target customers.

The report findings show 75 per cent of Canadian business owners using social media say it has a positive impact for their company. The survey also reveals its value goes beyond entrepreneurs just selling products, with one-third using social media to solicit ideas for their business.

“Businesses continue to ramp up their social media presence and the high number that see a positive effect bodes well for its ongoing importance,” said Cathy Pin, Vice President, Commercial Banking, BMO Bank of Montreal. “When it comes to sharing ideas, promoting company brand as well as products, social media has proven to be a method of choice for Canadian business owners.”

The findings reveal some of the ways social media is used:

- 30 per cent use it to gather ideas/suggestions from other people;

- 30 per cent use it to promote their brand/reputation;

- 20 per cent use it to sell a product.

“Innovation plays a major role in driving productivity, including innovations in communication and information,” said Douglas Porter, Deputy Chief Economist, BMO Capital Markets.  “The importance of such innovations cannot be underestimated, given the direct link between productivity gains and improving standards of living.”

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The Harris/Decima telephone poll was conducted from May 3rd to 19th, 2010 and is based on a sample of 427 Canadian businesses with between 50 and 499 employees and revenues between $5M and $75M annually. *Results have been weighted against the known universe for such Canadian businesses.* A sample size of 427 garners results that are accurate within �4.7 percentage points, 19 times out of 20.

For news media enquiries:

Paul Cunliffe, Toronto, paul.cunliffe@bmo.com, 416-867-3996

Laurie Grant, Vancouver, laurie.grant@bmo.com, 604-665-7596

Ron Monet, Montreal, ronald.monet@bmo.com, 514-877-1873