BIA/Kelsey: Plus Spenders and Auto Dealers Make Lucrative Accounts

Mon Sep 11, 2017

Kathy Crosett

As you well know, some of your local SMBs believe that spending a healthy chunk of revenue on Autoadvertising will yield a high ROI. BIA/Kelsey analysts call these types of SMBs Plus Spenders. These marketers are also the ones who are likely to use a range of formats, including directories.

In the last Local Commerce Monitor from BIA/Kelsey, analysts detailed the characteristics of Plus Spenders. These businesses have about $87,288 to spend on advertising every year. They’re ready to spend their money with you, if you can put a convincing proposal in front of them.

How can you find the Plus Spenders in your market? BIA/Kelsey analysts suggest that you look for a few specific clues:

  • Revenue of between $1 million and $5 million (25% of Plus Spenders are in this category)
  • Operating in the business sectors of home services, construction, personal services, retail stores
  • Staffed by about 40 employees

BIA/Kelsey analysts note that Plus Spenders allocate about 10% of their budget, or about $8,700 annually, to directory advertising. For purposes of this study, directory means both digital and print Yellow pages. This detail suggests that Plus Spenders want to cover all of their bases and reach as many people as they can in the marketplace. In comparison, SMBs that do no directory advertising have much lower ad budgets in general: about $5,400 annually. You should also know that the typical directory advertiser is also a big digital advertiser and allocates 39% of the ad budget to a variety of online formats.

While the automotive sector is not specifically listed as a Core Spender in BIA/Kelsey’s list, another company report emphasizes the importance of this industry in the local ad market. Business types range from auto dealers to tire dealers to auto parts and accessories stores. In total, these accounts will generate $16.3 billion in local ad spending this year. The largest portion of spending will come from auto dealers and manufacturers and will amount to $12.06 billion. Reps who are targeting auto dealers should know that the typical ad budget for these accounts is $244,835 – a 1.5% increase over last year.

Between now and the end of the year, make it a point to reach out to Plus Spenders to discuss their holiday ad plans and their budgets for next year.

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About Kathy Crosett

Kathy is the Research Director for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel.

View all posts by Kathy Crosett