New survey findings from Visual Objects –– a portfolio site featuring case studies and client reviews on top creative agencies –– show that 70% of small businesses (SMBs) are focusing and investing in social media advertising this year.
For the study, 1003 SMB owners and managers were surveyed on their advertising strategies with traditional and digital channels in 2022.
According to the report, many SMBs are factoring in newer digital trends while being cautious about advertising spending due to the ongoing COVID-19 pandemic.
“Social media offers unprecedented reach, the ability to hyper-target deeper insight into consumer behavior, and the opportunity to engage more personality with your audience -- all of which are crucial to business growth and longevity," says Stephen Light, CMO and co-owner of ecommerce brand Nolah Mattress.
The survey found that over a quarter of SMBs (26%) used between 10% and 30% of their advertising budget on social media showcasing.
Despite continuous public scrutiny and a plunge in market value, Meta’s Facebook remains the top social media channel (70%) for SMB advertising, followed by YouTube (54%) and Instagram (52%).
Thirty-eight percent of SMBs feel that Facebook is the most effective social media advertising tool.
“Companies desire to spend their ad budgets on platforms with the most viewership,” says David Morneau, CEO and SEO strategist at Breeze, an SEO services company. “Facebook has nearly 2 billion daily active users, which translates to colossal ad revenue and gives businesses the chance to increase their visibility enormously.”
Twitter (42%) and TikTok (31%) were two social media channels that also ranked for advertisers. The report says these numbers are likely to increase over the next few years.
Fifty-two percent of TikTok users say they discover new products through ads on the platform, and 61% think advertising on TikTok is more unique than on other channels.
Over a quarter of SMBs spent less than $10,000 on advertising in 2021, as annual advertising spending decreased for 25% of SMBs. Thirty-six percent of SMBs reported that COVID-19 had a moderate impact on their business.
Only 30% of SMBs plan on investing in print advertising in 2022, but businesses with more than 250 employees plan to invest even less (36%).
Just over half (54%) of SMBs plan to spend more on social media in 2022.