Sweet Spot: Small Biz Uses More Media

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Higher-spending small- and medium-sized business advertisers use 6.5 different media on average in their promotional mix -- compared with 3.1 different media used by the broader SMB advertiser population, according to new findings from market research firm BIA/Kelsey.

Higher-spending small and medium-sized business, per BIA/Kelsey, are spending at least $25,000 annually on media advertising and promotion. This is a considerably higher spending level than the core SMB population, which spends on average $2,000 to $3,000 annually on advertising.

A full 90% of higher-spending SMBs report having a Web site, versus 62% of core Local Commerce Monitor SMBs.

Higher-spending SMBs use more types of online media, and spend more for online advertising. In the past 12 months, these so-called Plus Spenders spent 26% of their total ad budget on online media, versus 21.8% for core LCM SMBs -- a difference of 4.2 points.

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"SMB Plus Spenders are more performance-oriented in making their media purchase decisions and do a considerable amount of lead tracking," said Steve Marshall, BIA/Kelsey research director. "This group of SMBs, with its digital media savvy and use of more media categories, represents the sweet spot for many companies developing and delivering local advertising solutions."

This group also spends an appreciable amount of their total budget on broadcast media, as 16.1% of their budget is allocated to broadcast media compared with 1.3% for all SMBs.

Finally, Plus Spenders tend to focus on media performance in making media-buying decisions, as 40% rated "demonstration of ROI" as the first- or second-most important service that a vendor of online advertising can provide.

Conducted annually with research partner ConStat, the research is an extension of BIA/Kelsey's ongoing Local Commerce Monitor study.

Neal Polachek, president of BIA/Kelsey, said he decided to conduct this research in response to the numerous inquiries from players in the local, social and geo media space that wanted to better understand the behaviors of higher-spending SMBs.

The SMB Plus Spenders survey was conducted in May 2010 with a sample size of 152. The survey was performed online using pre-existing, seasoned panels. The sample was nationwide, balanced between first- and second-tier markets and by key demographics.

1 comment about "Sweet Spot: Small Biz Uses More Media".
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  1. L Scrivens, August 26, 2010 at 2:45 p.m.

    Good article and very spot on in respect to the way that businesses use different types of media to help advertise their services. One way for any business to get noticed is to use MapWide.com. MapWide.com is one of the fastest growing professonal local search websites in the market today. MapWide.com aims to support consumers and professonals from a wide range of fields by linking them all together under search engine optimized website(s). MapWide is much less expensive than other advertising methods and it helps to get your business noticed. It also allows you to manage your information 24/7. Biggest plus is that consumers can find you without shuffling through pages and pages of listings. MapWide.com is more than just a search website, it is a great marketing tool at a very reasonable price. www.mapwide.com

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