You also have the great advantage of the credibility factor, people hearing about your business through family and friends. I watch this first hand everyday. I run social media campaigns for several companies, my client Hair By Marissa is a great example. When I started her facebook fan page Besides getting her fans up to 150 in the first week, she also got 4 new clients that week and with in the first 5 weeks had close to 30 new client. Her page is being followed by close to 300 people now. When one women posted a comment about how great her hair came out one of her friends booked an appointment the next week. These types of comments are left on company fan pages all the time. You can't get this type of daily feedback about you business with and Ad in the yellowbook or pennysaver.
In a report on why social media is worthy of a small business owners time, Business-week's Steve McKee notes the ability of the web to "level the playing field" between large and small businesses. Social media has taken off, he says, and it shows no sign of slowing down.
Jay H