Report: Small Businesses Will Buy Ads Across 8-15 Platforms
|RADIO ONLINE | Thursday, May 9, 2019|
The size of local businesses determines their ad buying power, according to BIA's U.S. SAM Survey of Advertising and Marketing. Businesses with 1-19 employees spend just over $6,431 per year on an average of eight media, compared to businesses with 20-99 employees that spend more than $47,602 per year across an average of 15 media. Both groups use a mix of traditional and digital channels and both plan to increase spending in the different digital media channels they use in 2019.
"Small businesses are diverse and there are many ways to look at their ad buying power," said Celine Matthiessen, VP insights and analytics, BIA Advisory Services. "We like to look at their ad spend and ad buying behaviors by employee size and revenue because there are huge differences in a local businesses' advertising strategy based on their size."
For businesses with 20-99 employees, 53.7 percent of these advertisers plan to increase their spending this year. Social and mobile top the list in terms of most used media and media most likely to get future spend. They also give the nod to traditional media like television, radio and newspaper for high (10x) ROI.
It's a different story for very small businesses that have under 19 employees. They do not intend on increasing their ad spend this year. However, they are intent on putting more of their ad budget toward geo filters on social, search and email.
"For all small businesses of all sizes, advanced targeting capabilities is becoming more important," continued Matthiessen. "Local sellers can tap into this opportunity to better show how their media delivers targeted access to buyers. It's also a key pathway for traditional media sellers to secure new digital spend."