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BizReport : Email Marketing : March 12, 2011

New report - SMBs boost spending on social and email

A new report from Borrell Associates shows SMBs plan to increase spending on online activity, with Internet budgets for some rising by almost a third.

by Helen Leggatt

borrellassoc.jpgIn 2010, SMBs put around $31.5 billion in their online advertising coffers. This year they intend to up that amount to around $40.6 billion, according to Borrell's new report "SMBs Become Everybody's New Best Friend". That's an increase of 29%.

Of 2,800 SMB owners polled, 83% have a digital spend. Over half of those (53%) expect to allocate more to that spend this year. Spending on websites, social media marketing, and e-mail is expected to increase by around 30%.

Mobile and online video will also attract larger spending by SMBs, with two out of every five increasing budgets.

Meanwhile, the increase in spend on traditional media is expected to rise just 4.5%.

For some traditional activities, such as Yellow Pages, newspapers and local magazines, SMBs indicated spending would decrease 24%, 18%, and 15% respectively.

Very few SMBs today do not have a web presence. While 86% reported having a website in 2010, that's expected to rise to 91% this year. According to Borrell, SMBs account for over 70% of all online ad spending and, while individually they spend relatively small amounts online (an average of around $2,300 per year), they represent 95% of U.S. businesses.

Tags: advertising budgets, online spend, SMB trends

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