Small businesses in the United States, on average, now use more than seven marketing and advertising methods to promote themselves. That number has steadily been growing, according to Local Search Association (LSA) survey data. It also stands as a kind of indicator of the increasing complexity of digital marketing.
Driven by digital media outlets, the study also found that SMBs plan to boost digital spending. The top categories where local businesses plan to increase digital spending include websites, social media, mobile, display advertising and search marketing.
The main reasons cited for the expected changes center around staying competitive and seeing better ROI. When looking at increases over three years, online display and mobile marketing have increased the most by 65% and 42% respectively.
In addition to adjusting budgets, the perceived value of these digital outlets is changing as well. When asked which promotional/marketing method has been the most effective, of the top five, four of them represented digital media.
According to LSA and Borrell Associates data, SMBs are receiving up to 20 sales contacts a month and only respond to a fraction of them. There’s also growing pressure to allocate limited marketing budgets more efficiently, which means that some marketing channels are in danger of being dropped.
The data comes from LSA’s 2015 Small Business Outlook report. LSA members and research subscribers receive access to reports depending on membership level. To access this report or learn how you can, contact us.
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