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BizReport : Ecommerce archives : August 25, 2010

Report: SMBs utilizing more media

Not only are small businesses moving online, but they are consuming and relying on more media in the online space to engage consumers. A new report from BIA/Kelsey finds that, on average, small- to medium-sized businesses are using 6.5 different media for advertising and promotion.

by Kristina Knight

The 'Local Commerce Monitor (LCM): SMB Plus Spenders' survey was conducted with research partner ConStat.

For the report, BIA/Kelsey surveyed small businesses who spend at least $25,000 per year with media advertising and promotion. The core Local Commerce Monitor small businesses spend between $2,000 and $3,000 (annually) and utilize 3 different media.

"SMB Plus Spenders are more performance oriented in making their media purchase decisions and do a considerable amount of lead tracking," said Steve Marshall, Research Director for BIA/Kelsey. "This group of SMBs, with its digital media savvy and use of more media categories, represents the sweet spot for many companies developing and delivering local advertising solutions."

Researchers found:

• 90% of SMB Plus Spenders have websites
• SMB Plus Spenders push just over 25% of ad budgets into online spaces
• 16% of ad budgets are spent on broadcast media
• 40% look for demonstrable ROI when making campaign decisions

Comparatively speaking, the core members of the LCM businesses spend about 21% of their ad budgets online, spend 1% of their budget with broadcast media and only about 62% have websites.

Although the broadcast spending is not large, that is one area where online may begin impacting small businesses through local advertising. Google TV Ads have announced a partnership to sell video inventory across 11 national networks through DirecTV's satellite television service. Meanwhile, Gannett has announced that their local newspapers and television stations will be selling Yahoo ad inventory; although Gannett Local will not be involved, the partnership could open new areas to smaller, local businesses.

Tags: BIA/Kelsey Group, media consumption, online media, small business, small business advertising

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