Higher Spending SMBs Using More Media Channels
Higher spending small- to medium-sized business advertisers (SMBs) not only allocate more money to their advertising budgets than the other SMBs on average, but use over twice as many media channels in their marketing mix, according to a survey from BIA/Kelsey.
Such SMBs—"Plus Spenders"—spend at least $25,000 annually on media advertising and promotion, considerably more than the broader SMB population on average, which spends from $2,000 to $3,000 annually.
SMBs that spend more on advertising do so more diversely: Plus Spenders use an average of 6.5 types of media in their promotional mix, compared with 3.1 types used by all other SMBs.
Though Plus Spenders retain broad roots in traditional media—--using a wide array of print products, such as coupons, door hangers and fliers—they also use online media robustly: 55% already use email marketing.
Plus Spenders spend more than other SMBs across various advertising areas:
- Websites: 90% of Plus Spenders have a website, compared with 62% of all other SMBs.
- Online media: Plus Spenders spend on average 26.0% of their total ad budget on online media, compared with 21.8% for other SMBs.
- Broadcast media: Plus Spenders spend on average 16.1% of their ad budget on broadcast media, compared with 1.3% for other SMBs.
Below, other findings from BIA/Kelsey's New LCM: SMB Plus Spenders survey, which tracks SMBs that spend $25,000 or more annually on media advertising and promotion.
Plus Spenders are performance-oriented when making media buying decisions: 40% rate the demonstration of ROI as the first or second most important service a vendor of online advertising can provide. Tracking lead sources (calls or clicks) is a close second (39%).
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