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BizReport : Advertising archives : August 31, 2011

Forecast: SMBs to shift more ad dollars to digital

As the public shifts their content consumption to digital avenues, businesses are following. From movie streaming and newspaper reading to time-shifting prime time television to watch via laptop or tablet, consumers are do more with the Internet. To keep up small businesses are also moving online, hoping for a bigger bang for their advertising buck. BIA/Kelsey Group has released a new forecast, indicating the digital ads, performance and customer retention are top priorities for small businesses across the US through 2015.

by Kristina Knight

Up to this point, at least half of SMB ad dollars have been pushed toward traditional marketing efforts - newspaper, radio, television. But moving into 2012 and through 2015, the BIA/Kelsey forecast predicts only about 30% of marketing budgets will be slated for traditional outlets. Digital, instead, will take top billing as SMBs try to connect through social networks, mobile and email campaigns.

"With the advent of daily deals to drive customer acquisition, SMBs are now increasingly focused on leveraging technological solutions to engage, grow and retain a higher percentage of their customers," said Neal Polachek, president, BIA/Kelsey. "As this trend accelerates, these SMBs will turn to outside providers -- media companies as well as pure-play technology providers -- to harness simple tools, which will enable them to maximize the long-term value of each new customer they acquire."

Other interesting predictions include:

  • SMB media spending will increase from $$ billion to more than $40 billion by 2015

  • 'Traditional' media spending from SMBs will see a minor increase - $11.8 billion to $12.1 billion

  • Online/digital spending will increase to $16.6 billion

  • Performance-based spending will increased to nearly $5 billion

  • Tags: ad trends, advertising forecast, BIA/Kelsey, online advertising, small business advertising, SMB trends

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