• by Ray Schultz , Columnist, February 11, 2026

Small businesses, whatever their economic worries, are planning to market more aggressively in 2026. 

That means an increase in digital channels, including email, according to Constant Contact’s Q1 2026 Small Business Now report.

Of SMBs polled, 74% expect to spend more time on marketing, and 68% say they will increase their marketing budgets. Only 14% foresee a decrease in investment.

Yet 41% say inflation and rising costs are their main concern. 

"Small-business owners are entering 2026 with a clear directive: do more, but do it smarter," sayd Smita Wadhawan, chief marketing officer at Constant Contact. "Our latest data shows a fascinating tension—inflation is the number one worry, yet businesses are choosing to increase their marketing budgets rather than cut them. This signals that entrepreneurs view marketing not as a discretionary expense, but as the essential lever for survival and growth.”

Wadhawan adds, “By leaning into efficiency and AI tools, they are finding ways to maintain this increased pace without burning out."

The top investment channels are:

• Social media—68%
• Email marketing—41%
• In-person events—29%
• Traditional advertising—26%

But there are barriers, the top one being the need to engage customers (44%). SMBs are  responding to this by prioritizing efficiency strategies (50%) and testing new tools and technologies (33%). 

Meanwhile, artificial intelligence is rapidly growing as the tool of choice for closing the gap between high effort and high efficiency, SMB owners say.

Of the businesses poled, 54% are using Ai marketing tools. Drilling down, 45% are using AI to analyze trend data and 44% to create content. 

Constant Contact surveyed over 1,500 small-business owners in the United States, Canada, United Kingdom, Australia and New Zealand.