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Half of SMBs Use Social Media for Marketing


More than one-half (52%) of surveyed small and medium-sized businesses (SMBs) say they use social media to promote their businesses, and 49% purchase online advertising (including SEM products) themselves, directly from websites, according to a new report by BIA/Kelsey.

Overall, SMBs surveyed are shifting more attention and resources to online marketing, particularly to self-serve advertising and other promotional channels such as video, social media, and search engine marketing (SEM), the study reports.

Below, additional findings from BIA/Kelsey's ongoing survey of small and medium-sized US businesses.

On average, SMBs surveyed say they plan to allocate 26% of their advertising and marketing budgets to digital media over the next 12 months. That level is up nearly 2 percentage points from the 24.3% allocated as of the fourth quarter of 2011:

On average, SMBs spend $3,041 annually on all media (traditional and online) as of 4Q11, down slightly from $3,176 spent one year earlier:

Other key findings among SMBs surveyed:

  • 87% use online marketing, down 3 percentage points from the 90% that did so in 4Q10. 
  • 22% plan to have a video on YouTube over the next 12 months.
  • On average, SMBs use 4.4 types of media channels, down from 4.6 a year earlier.

About the data: The Local Commerce Monitor (LCM) is BIA/Kelsey's ongoing tracking survey of small and medium-sized businesses conducted online with research partner ConStat since 1999. LCM Wave 15 was conducted among 300 SMBs via online survey in November 2011.

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  • by Amber King Mon Mar 26, 2012 via web

    Social media is the most used marketing tool nowadays. The reason for this is because it is affordable and its capability to reach a wide audience. For SMB, this is a great advantage since they do not need to cash out a lot to compete with big companies.

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