SMBs 2017 Ad Budgets to Include 21 Different Media

RADIO ONLINE | Tuesday, February 28, 2017

New findings from BIA/Kelsey's research survey, "Local Commerce Monitor" (LCM), reveals that more than 60 percent of "Plus Spender" small and medium-sized businesses (SMBs) will increase their advertising and marketing spending in 2017. This expanded group of SMBs continues to add media to their advertising mix and, on average, is now using 20.8 different media and platforms.

LCM is the firm's proprietary survey of SMBs that track the spending intentions of both Plus Spenders (SMBs that spend at least $25,000 a year on advertising and promotions) and Core Spenders (SMBs that spend less than $25,000 a year on advertising and promotions). The most recent is LCM 20 conducted in the third quarter of 2016.

"SMBs are benefiting from the lower costs of digital media, as well as the opportunity to do more of the implementation themselves," said BIA/Kelsey VP/Analysis and Insights Celine Matthiessen. "The key takeaway for businesses pursuing this segment of SMBs is that they are investing the savings back into their advertising and marketing plans. This could potentially create more space for new types of digital services in areas like mobile and social, as well as continued spend on reliable traditional media advertising."

The LCM Wave 20 survey reveals that Plus Spender SMBs are split between preferring Do-It-Yourself digital advertising services, 39 percent, and Do-It-With/For Me solutions, 37 percent. The top 10 media used for advertising and promotion by Plus Spender SMBs include, in order of usage: Direct mail (66.3 percent), IYP (61.8 percent), Facebook (61.5 percent), website video (54.8 percent), community sponsorships (54.8 percent), Facebook ads (54 percent), Email (53.8 percent), giveaways (52.5 percent), cable (51.3 percent) and magazines (48.3 percent).

Results from BIA/Kelsey's LCM Wave 20 survey will be profiled at the company's first event in 2017, LOCAL IMPACT Dallas. The session, Getting Inside the Minds of SMB Advertisers, will explore top findings from the survey, examining Plus Spender and Franchise SMBs in particular.