BIA/Kelsey: SMBs Raise Ad Budgets, Media

New findings from BIA/Kelsey’s proprietary research survey, Local Commerce Monitor (LCM),  reveals that more than 60% of “Plus Spender” small and medium-size businesses (SMBs) are intending to increase their advertising and marketing spending in 2017. For this 20th wave of this survey, BIA/Kelsey expanded the number of respondents in this group and the breadth of questions. This group of higher spending SMBs continues to add media to their advertising mix and, on average, is now using 20.8 different media and platforms, which includes a number of new online categories BIA/Kelsey is tracking for the first time.

LCM is the firm’s proprietary survey of SMBs to track the spending intentions of both Plus Spenders (SMBs that spend at least $25,000 a year on advertising and promotions) and Core Spenders (SMBs that spend less than $25,000 a year on advertising and promotions). The most recent wave is LCM 20 conducted in the third quarter of 2016.

“SMBs are benefiting from the lower costs of digital media, as well as the opportunity to do more of the implementation themselves,” said Celine Matthiessen, VP analysis and insights, BIA/Kelsey. “The key takeaway for businesses pursuing this segment of SMBs is that they are investing the savings back into their advertising and marketing plans. This could potentially create more space for new types of digital services in areas like mobile and social, as well as continued spend on reliable traditional media advertising.”

The LCM Wave 20 survey reveals that Plus Spender SMBs are split between preferring Do-It-Yourself digital advertising services, 39%, and Do-It-With/For Me solutions, 37%. The top 10 media used for advertising and promotion by Plus Spender SMBs include, in order of usage, the following: Direct mail (66.3%), IYP (61.8%), Facebook (61.5%), website video (54.8%), community sponsorships (54.8%), Facebook ads (54%), email (53.8%), giveaways (52.5%), cable (51.3%) and magazines (48.3%).

When SMBs were asked which advertising results were the most important, the top three results ranked over 50%, indicating Plus Spender SMBs have specific ROI expectations:

• Emails (53%)
• Website Traffic/Clicks (51.5%)
• Phone Calls (50.5%)

“Considering the large number of media use, Plus Spender SMBs will inevitably continue to spend on traditional media, particularly in certain verticals, like auto dealers and furniture stores,” added Matthiessen.

More details can be found here.