Victorians continued to be the biggest users of social media for business, at 19 per cent, though this fell from 24 per cent. Only 11 per cent of people from NSW connect with customers and fans via a business page on Facebook, YouTube or Google+, the least of any state and a drop from 15 per cent.

"With Australia's Internet audience reaching 16.2 million in May 2012, it surprises me that so many business operators have not yet realised the value of having a simple website containing their contact details," Reed said.