In its most recent Local Commerce Monitor, BIA/Kelsey focused on the “plus spender” category of small and medium-sized businesses. These SMBs typically spend more than average on advertising. They also spread their ad dollars across several media formats. The findings of the 20th LCM wave from BIA/Kelsey show a positive trend for the coming year.
On average, the “plus spender” SMBs buy over $25,000 of advertising every year. These businesses are now using 20.8 different formats and platforms for their marketing and advertising purposes. Using a mix of traditional and digital media formats, these marketers are covering all the bases in terms of making sure they connect with potential customers.
The top media formats preferred by these businesses are:
- Direct mail 66.2%
- Internet yellow pages 61.8%
- Facebook 61.5%
- Website video 54.8%
- Community sponsorships 54.8%
- Facebook ads 54%
- Email 53.8%
- Giveaways 52.5%
- Cable TV 51.3%
- Magazine 48.3%
Celine Matthiessen, vice president analysis and insights, BIA/Kelsey, notes that these SMBs are realizing significant cost savings by implementing more digital advertising. While 39% of Plus Spender SMBs (those that spend more than $25,000 on advertising) are comfortable doing digital advertising on their own, at least 37% prefer the do-it-with/for me model. These businesses represent solid opportunities for enterprises who sell digital marketing services or digital media space.
The typical Plus Spender SMB also has specific convictions about which media formats are most important and deliver the best ROI:
- Emails (53.0 percent)
- Website Traffic/Clicks (51.5 percent)
- Phone Calls (50.5 percent)
Media sales reps should keep in mind that traditional advertising is likely to be in demand from Plus Spender SMBs that operate in specific sectors. BIA/Kelsey analysts pointed out that auto dealers and furniture stores will continue to purchase traditional media, along with experimenting in digital formats.
If you’re selling digital, go after the Plus Spender SMBs in your market. As their success grows, use them as case study examples to convince your average ad buying SMBs to increase their ad budgets.