• by Ray Schultz , Columnist, September 3, 2025

Email is now seen as the most effective marketing channel by 44% of small businesses worldwide — double last year’s number. Yet 28% struggle to prove its value internally, according to a new study from Constant Contact, conducted by Ascend2. 

The channel is considered to be even more effective in the technology sector (49%), retail and e-commerce (47%) and professional services (46%). But 41% admit they find it difficult to get people to open or click.  

Email may be the least of their concerns. Globally, 44% cite the rising costs of goods and tariffs their biggest challenge. And 60% say tariffs have affected their sourcing. 

In the U.S., 36% of SMBs have not made operational changes — the highest percentage of any market. In Canada, 69% have experienced supply issues and almost 50% have seen increased pricing. The solution? Leaning into local sourcing and focusing on consumer trust.

Still, only 17% feel very prepared to adapt. 

Those are some of the developments. Another finding shows that 48% are using artificial intelligence (AI) to write emails and subject lines. And 37% use AI to write social posts and 29%  to create visual content.  

These AI  users are more likely to enjoy success with their email (53% vs. 35% for non-users). In addition, they are seeing success in their paid social (43% to 20%) and search marketing results (21% versus 9%). 

But strong doubts persist. SMBs are concerned about data privacy (35%), trust in AI-generated output (31%) and brand inconsistencies (26%). 

On another front, many small owners are turning to SMS. Seventy-five percent of high-performance marketers say it outperforms other channels. It is particularly useful in health care, where 29% say it is a top-performing channel, higher than any other industry.  

In addition, 78% of SMBs are now using videos—for such  purposes as:

• Customer testimonials  – 27%
• Company culture videos — 26%
• Promotional content — 25%. 
• Advice, tips, and how-tos — 25%

"Small businesses are under real pressure to see positive results from their marketing, but many feel like they are doing more without getting more back," concludes Smita Wadhawan, chief marketing officer at Constant Contact. "They are working harder than ever, but without the time, expertise, or data to guide them, many are still guessing about what will resonate with their customers.” 

Ascend2 surveyed 2,500 small business decision makers in Australia, Canada, the United Kingdom and the United States in June 2025.