The majority of companies are planning to increase their spend on social media activities next year, according to a new report from online consultancy Econsultancy.

The Social Media and Online PR Report draws on interviews with 1,000 businesses about their upcoming budget plans, and highlights a lack of resources and results in social media projects.

Fewer than a quarter of companies are able to see a 'tangible' return on their investments, according to the report, while just under two thirds had gained 'more benefit' from their spend 'but nothing concrete'.

However, companies that have concentrated spend on social media have seen a return on investment, according to the report. More than half of all firms that had made a significant effort had been rewarded, the report claims.

Some 90 per cent of respondents said that social media is taking up more time than it did a year ago, while 86 per cent are planning to increase their budgets next year.

"Before they think about their strategy and the best tactics, companies need to go back to basics and think in detail about how online PR and social media can help them deliver against their business objectives," said Michelle Goodall, social media and online PR consultant at Econsultancy.

"The reality is that most businesses understand how to listen, what to measure and where to engage, but are struggling to define the value of engagement and reputation in social spaces."