• by Jack Loechner , Staff Writer @mp_research, November 11, 2003

Small Business Depends on Yellow Pages and Newspapers

As summarized in eMarketer, The Kelsey Group estimates that small to medium-size enterprises (SMEs) will spend $22 billion on advertising this year, with 46% going to yellow pages advertising. A sizeable portion of SME media spending this year should go towards Web sites.

Advertising Spending By Small Business, 2003 (% of total spending)

• Yellow pages 46%
• Newspaper 13%
• Web site 11%
• Direct mail 6%
• Magazines 6%
• Radio 4%
• Search engine keywords 3%
• Print coupons 2%
• Outdoor advertising 2%
• Web banners 1%
• Email marketing 1%
• Other 5%

Source: Kelsey Group October 2003

The OPEN Small Business Network 2002 Monitor found that 29% of US small businesses were using the Net for advertising or marketing purposes.

Online Business Activities of Small Business, February 2002 (% of respondents)

• Making travel plans 36%
• Office supplies, equipment, services 36%
• Industry or market research 34%
• Marketing or advertising 29%
• Network with entrepreneurs 24%
• Wholesale purchases 22%
• Managing accounts and payables 16%

Source: OPEN Small Business Network 2002 Monitor

Kelsey also reports that $230 billion will be spent on advertising in general in the US this year, with the vast majority going towards TV spots, newspaper spots and direct mail. The research firm estimates that just 2% will be spent online.

Ad Spending in US, 2003 (% of total)

• TV 28%
• Direct Mail 21
• Newspaper 20
• Misc. 16
• Yellow pages 6
• Magazine 5
• Internet 2
• Out of home 2

Source: Kelsey Group, October 2003

EMarketer is more optimistic about online ad spending than Kelsey, projecting that total online ad spending will reach $6.9 billion by the end of this year.

Find out more here.