Commentary

SMBs "Can't Afford" To Outsource More Marketing Initiatives

According to new survey data from Constant Contact, while most small business owners are “do-it-yourselfers,” handling email to SEO in-house, many outsource select activities related to advertising and website management. Though there are marketing activities that small businesses handle largely in-house, of the 96% of those who handle social media in-house, 19% said they would prefer to outsource this responsibility.

 The majority of small businesses surveyed conduct email and related marketing activities, including newsletters and surveys, in-house.  When it comes to outsourcing, small businesses are focusing on those marketing initiatives that have larger associated costs and require more time away from running their core business. 

Small Business Outsource Practice

Initiative

% Outsourcing 

TV/Radio Ads

40%

SEO

35%

Online Banner Ads

23%

Website

22%

Local Print Ads

20%

Email newsletters

3%

Social media

3%

Source: Constant Contact, September 2013

 Christopher M. Litster, Senior Vice President, Constant Contact, says “… small businesses… (say) it’s challenging to keep pace with evolving online marketing technologies… Facebook ads, mobile-optimized websites, Google Analytics… understandable that many outsource these kinds of activities… “

Among the activities that small businesses handle in-house but would prefer to outsource, social media marketing tops the list.  There is a clear gap between small businesses that dooutsource and those want to outsource, notes the report:

Outsource Preference Gap (% of Respondents)

Marketing Activity

Outsource 

Prefer to Outsource 

% Point Gap

Social Media

3%

19%

16

SEO

35%

50%

15

Local Print Ads

20%

32%

12

Online Banner Ads

23%

34%

11 

TV/Radio Ads

40%

51%

11

Website

22%

31%

9

Email newsletters

3%

8%

5

Source: Constant Contact, September 2013

Litster noted that  “… in an earlier Constant Contact survey… though 80% said they conduct social media marketing… more than half (say)… it’s the marketing activity they need the most help with… “

 Cost is an issue in not outsourcing these marketing responsibilities. The percentages ranged from 46% saying they cannot afford to outsource SEO, to 29% saying they cannot afford to outsource online banner ads.

Cost Major Factor in Not Outsourcing

Marketing Initiative

Can’t Afford

SEO

46%

TV/radio

41

Website

38

Local print ads

36

Social media

36

Online banner ads

29

Source: Constant Contact, September 2013

Survey respondents estimated that they, their employees, and their volunteers spend a combined total of approximately 33 hours per week on marketing activities.  The mean dollar amount of the value of an extra hour in their day is $273, ranging to $5,000. 

 Litster.concludes that, though  “… 67% (of the respondents)… don’t have enough time… to get everything done… the monetary value of their time… compared that to the time spent on activities they’d prefer to outsource… like social media… outsourcing (may) prove (to be) more cost-effective…”

For additional information and access to the PDF report from Constant Contact, please visit here.

 

 

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