Borrell: 36% of Franchisees Are Buying Mobile Advertising

Thu Mar 30, 2017

Kathy Crosett

Local franchisees can be a steady source of business for media sales reps. These small business ownerssmbflowershop have plenty of support and coaching from their parent organizations. They are required to spend specified levels of revenue on local advertising. And, when there are enough franchisees from one company in a market, they often form buying groups in the local market, which is an opportunity for reps to increase sales.

Borrell Associates recently published its Franchise Advertising Executive report, a survey of 500 local advertisers. This survey is a sample of the nearly 80,000 franchisees operating nationwide. Borrell analysts estimate that these businesses buy $20 billion in advertising each year.

As the following statistics show, digital and direct mail are favorite channels for local franchisees, whether they are running restaurants or dry cleaning businesses. Here are the percentages of franchisees using specific media formats:

  • Digital 76%
  • Direct mail 64%
  • Newspaper 53%
  • Radio 44%
  • Mobile 36%
  • Magazine 32%
  • Broadcast TV 32%
  • Cable TV 31%
  • Directories 26%
  • Outdoor 22%
  • Cinema 4%

In the past year, the number of franchisees buying newspaper, magazine and directory advertising has dropped. At the same time, interest in mobile advertising jumped. The percentage of franchisees using the format increased from 28% to 36% in one year.

Media sales reps should know that the typical franchisee spends “67% more than the typical local business” on advertising. These businesses are opening at a higher than average rate in several sectors. For example, the growth rate in franchisees during the past 5 years in business services (10%),  lodging (9.9%) and personal services (9.8%) has been particularly notable. Many franchising organizations require their new franchisees to spend a significant amount of money on grand opening advertising, a detail that bodes well for media sales opportunity.

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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
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