Last month, BIA/Kelsey analysts discussed VSBs (very small businesses) and their tendency to use social media and company websites as their key marketing tools. This month, the company’s analysts are back with a great discussion on how established SMBs are advertising in your market. The findings in Wave 18 of their Local Commerce Monitor reveal how you can increase your sales.
Did you know that ‘established SMBs’ spend about $23,300 each year on advertising? These business owners are likely feeling confident about what they’re doing. They also have enough experience to realize that a good marketing campaign generates revenue.
SMBs who have been operating for a while are well versed in social media use. 7 out of 10 pay attention to ‘likes’ and 6 out of 10 also keep an eye on customer comments. As business grows, this type of monitoring takes up a bigger part of the day. Currently, about 70% of these businesses are managing the task themselves. It’s easy to get overwhelmed when an operating crisis disrupts the everyday flow and taking care of social media can fall to the bottom of the list. Keep this in mind when you approach your clients with a proposal for your digital marketing services.
According to BIA/Kesley, search, email and print will be the top channels for SMB advertising investment this year. In general, researchers found these SMBs use both digital and traditional media. While these businesses have a good track record, they intend to at least maintain market share while others plan to grow revenue and perhaps steal customers from a competitor.
To do that, a significant percentage will increase their ad spending. Here are the plans for established SMBs in 2015:
- Increase 31.1%
- Maintain 55.5%
- Decrease 5.7%
- Not sure 7.7%
Compare these numbers and intentions with the newbie SMB owner who is likely to be spending about $17,360 on annual advertising. Then decide how to allocate your sales time going forward.