www.BorrellAssociates.com

Tomorrow’s Media, Understood Today

SMB Marketing Patterns
Q2 and Q3 2013 Surveys
December 2013
Background & Methodology
This survey is part of ongoing Borrell surveys to monitor changes in
advertising patterns at the ...
The Highlights
SMBs are hopeful. 64% are “very” or “somewhat” optimistic about near-term (12
months) improvement to the lo...
Most SMBs optimistic about economy
Finding Qualifed Employees

43%

41%

39%

Very easy

Somewhat easy

27%

7%

10%

24%
...
Sales Reps Call Every Day
60%

Attempts:
Mean : 18.6
Median :8
Pitches Taken:
Mean : 6.5

On average, SMBs get five sales ...
Moderate Growth for YOY Spending
Avg. Media Bought = 5.0

Plans

Ads Bought
47%
None

8%

1

8%

2

14%

3-5

27%
39%

6-9...
Share of Ad Budgets: Digital is No. 2
(among this sample)

22%
19%

12%

NOTE: Borrell’s spending data for the entire U.S....
Total Marketing Expenditures on the Rise
$ 2,283,300
$ 97,100

Net of Revs

Direct vs. Non-Ad

Gross Revenues
Total Combin...
Online Spending is an Energizer Bunny
it keeps going and going and…

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%

Online/Dig...
Top Activities: ‘Own Website’ & Social Media

10. Which of the following ONLINE MARKETING do you expect to engage in 2013?...
No. 2 Source of Customers: My Website
Customer Source
Referrals from other customers
Company website
Referrals from friend...
Largest Share of Funds/Focus: My Website
Any Spend

Spend Share

Company website

75%

Social Media

55%

Email

50%

Sear...
Social Networks Reaching Ubiquity
Mean Number of Fans: 1,198
Median Number of Fans : 500

Don't
know
1%

Key Metrics
59%

...
Facebook is Top Dog, but Google+ in the Mix
Social Sites Used
Facebook or FacebookConnect

70%

GooglePlaces/Google+

42%
...
‘Social Search’ is on SMBs’ Radar
70%
55%

50%

24%

26%
21%

25%

23%

22%
9%

"Social Search" tools

66%

Reputation
man...
Deals Get Mixed Results
Satisfaction

Deals
Don’t
Know
2%

33%

Yes
21%

32%

16%

14%

No
77%

6%

Very satisfied

Somewh...
Mobile is Becoming the New Black
Importance of Digital Visibility
51%

34%

8%

Very important

Somewhat important

Not ve...
Demand for Mobile Marketing is Pent Up
Don't
know
4%

Pitched Mobile

Used Mobile

Yes
19%
No
78%

Don't
know
10%

Likelih...
Impact From “Showrooming”
“Showrooming” is the process in which a customer uses a Smartphone while in a store
to evaluate ...
SMBs Directly Manage Digital and Mobile

36. Does your company write and post content
for Facebook, business listings, bus...
Detail on Managing Digital Presence
35%
30%
25%
20%
15%
10%
5%
0%
Creating text to
post

Keeping up with
Facebook

Very ea...
Two-Thirds Collect Customer Data
(but 2/3 don’t appear to be mining it)

Customer Database

Loyalty Programs
Don't
know
1%...
The Big Draw: Website Design & Hosting
Digital Services Bought or Sought
Website design and hosting

34%

Social networkin...
Do you think
YOUR Advertisers Are Different?
Borrell conducts thousands of SMB surveys quarterly in
local markets. Find ou...
Ad Spending In Your Market

Test Drive at www.adspending.com, or call 757-221-6641
Questions?
Greg Harmon
Senior Research Analyst
Borrell Associates, Inc
gharmon@borrellassociates.com
415-566-4348

Jim Bro...
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Where SMBs really advertise and where the PLAN to spend more next year

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Gordon Borrell, Greg Harmon and Dick Larkin discuss findings from Borrell Associates' annual survey of small and medium sized advertisers to better understand where they are currently advertising and what changes they plan on making in their advertising spend.

One of the biggest gaps is in Mobile Marketing for SMBs. 85% said that they considered mobile to be important to their overall marketing, but only 19% are currently doing anything about it.

Newspapers continue to garner the lion's share of SMB ad dollars, but that number is dropping and an increasing rate.

85% said that they are advertising on Facebook. That's an enormous awareness of the social network.

Published in: Marketing, Business, Technology
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Where SMBs really advertise and where the PLAN to spend more next year

  1. 1. www.BorrellAssociates.com Tomorrow’s Media, Understood Today SMB Marketing Patterns Q2 and Q3 2013 Surveys December 2013
  2. 2. Background & Methodology This survey is part of ongoing Borrell surveys to monitor changes in advertising patterns at the local level. Questions generally remain the same from quarter to quarter, allowing us to identify trends  Respondents for this wave were solicited from current, past and prospective advertising clients of 14 local media companies across a wide geographic region of the U.S.  Local media companies sent invitations to participate; Borrell collected and analyzed results.  Surveys were conducted May 1 through Aug. 23, 2013.  There were 903 respondents and 440 completions.  Respondents were offered an incentive to participate (an iPad, awarded by random drawing).  More information and details available at www.borrellassociates.com or by emailing gharmon@borrellassociates.com.
  3. 3. The Highlights SMBs are hopeful. 64% are “very” or “somewhat” optimistic about near-term (12 months) improvement to the local economy. Some have dropped out of newspapers altogether. The percentage who buy print newspaper advertising declined from 87% in 2011 to 71% in the latest survey. Digital spending continues to rise significantly. In 2011 digital share of ad budgets was 15%; in our latest survey, SMBs reported 19%. This equates to a 33% increase in digital ad budgets in two years. Facebook rules. More than 83% use Facebook, vs. 64% two years ago. Mobile marketing is the new black. 85% say a mobile presence is important. Deals are languishing. 77% aren’t participating; only half who do are satisfied. “Showrooming” no big whoop. 9% of SMBs said it hurts business; 24% believe it helps.
  4. 4. Most SMBs optimistic about economy Finding Qualifed Employees 43% 41% 39% Very easy Somewhat easy 27% 7% 10% 24% 21% 17% 14% Neither difficult nor easy 19% 19% 13% Somewhat difficult 9% 2% Next 6 months 3% 2% Next 12 months Very optimistic Neutral Very pessimistic 18% Next 2 years 35% Very difficult 16% Don’t know 16% Somewhat optimistic Somewhat pessimistic 40. How would you rate your overall expectations about local area economic conditions over the next few time periods ? N = 477 www.borrellassociates.com
  5. 5. Sales Reps Call Every Day 60% Attempts: Mean : 18.6 Median :8 Pitches Taken: Mean : 6.5 On average, SMBs get five sales calls per week and listen to only one of them. 50% 40% 30% 20% 10% 0% 0 1-4 5-9 10-14 15-19 Contact Attempts 20-24 25-29 30-49 50 or more Don't know/Not sure Pitches Taken 3. Many different media work to earn your business as an advertiser. In an average month, how many total attempts are made to speak with or reach you about any advertising opportunity? N = 804 4. In an average month, how many advertising sales people do you speak to, in person or on the phone, among these incoming efforts? N = 830
  6. 6. Moderate Growth for YOY Spending Avg. Media Bought = 5.0 Plans Ads Bought 47% None 8% 1 8% 2 14% 3-5 27% 39% 6-9 19% 18% 10-14 15 or more 8% 6% 7% Don't know/Not sure 1% Spend more money Spend the same Spend less money amount Don't know 1. To begin, in how many different media outlets do you currently advertise? N = 903 5. Compared with what you spent on advertising in 2012, will you spend more money, less money, or about the same in 2013? N = 827 www.borrellassociates.com
  7. 7. Share of Ad Budgets: Digital is No. 2 (among this sample) 22% 19% 12% NOTE: Borrell’s spending data for the entire U.S. indicates that digital ad spending now comprises 25% of local ad budgets, newspapers 19%, radio 12%, and local TV 12%. The difference in the chart below is likely due to the fact that responses were from highly localized, smaller businesses. 9% 7% 8% 8% 5% 3% 3% 3% 1% 1% 6. Please estimate what portion of your total ad spending next year will be spent on the media listed below. Estimate the PERCENTAGE each will get in 2013. [Amounts should total to 100%.] N = 657 www.borrellassociates.com
  8. 8. Total Marketing Expenditures on the Rise $ 2,283,300 $ 97,100 Net of Revs Direct vs. Non-Ad Gross Revenues Total Combined Budgets 4.25% $88,277 + 10.7% $79,713 "Non-Ad" Marketing 36% Direct Advertising 68.3% $9,000 $6,000 2012 Total Ad and Marketing Spend 38. Not all advertising and marketing money is spent on ads alone; what percentage of your advertising and marketing budgets is spent on advertising versus "nonadvertising" expenses? [Total should be 100%.] N=399 2013 Total Ad and Marketing Spend Mean Median 37. What do you expect your total direct spend on advertising and marketing efforts will have been in 2012 and will be in 2013 N=351
  9. 9. Online Spending is an Energizer Bunny it keeps going and going and… 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Online/Digital Mobile Direct Mail Radio Local Newspapers Increase Other Local Outdoor and Broadcast TV Print Pub OOH Stations Stay the same Cable TV Stations Print Directories Cinema Telemarketing Decrease 7. Thinking of your total advertising budget, as compared with 2012, do you think your spending will increase, stay the same, or decrease in the following categories in 2013: [Choose one response for each item listed below.] N = 689 www.borrellassociates.com Other
  10. 10. Top Activities: ‘Own Website’ & Social Media 10. Which of the following ONLINE MARKETING do you expect to engage in 2013? [Select all that apply.] N = 652 www.borrellassociates.com
  11. 11. No. 2 Source of Customers: My Website Customer Source Referrals from other customers Company website Referrals from friends and family Professional referrals Events Print newspaper ads Social media Email marketing Direct mail Other print media ads Radio ads Industry organizations Yellow Pages Online ads Outdoor/Billboard TV ads Other (please specify) Mobile campaigns 73% 68% 61% 46% 43% 39% 36% 26% 25% 22% 21% 17% 17% 14% 13% 12% 8% 2% 36 Which of the following sources best provide you with new customers? That is, how do people most often hear about your services and products who have not shopped with you or visited your business before? [Select all that apply.] N = 498 www.borrellassociates.com
  12. 12. Largest Share of Funds/Focus: My Website Any Spend Spend Share Company website 75% Social Media 55% Email 50% Search engine optimization (SEO) 33% Banner/Display ads - Run of Sites (ROS) 25% Mobile (portion devoted to any type … 18% Paid search/Keywords (SEM) 21% Sponsorships 18% Banner/Display ads - Targeted Display 20% Business Directory listings 19% 8% Online/Streaming Video 9% 35% Email 13% Social Media 14% Banner/Display ads - Run of Sites … 6% Search engine optimization (SEO) Paid search/Keywords (SEM) Sponsorships 7% 4% 3% Banner/Display ads - Targeted … Mobile (portion devoted to any … Online classifieds Business Directory listings Online classifieds Other Online advertising and marketing Company website Online/Streaming Video Other Online advertising and … 4% 3% 2% 4% 1% 5% 14% 12. Thinking about your company's investments in ONLINE and MOBILE advertising and marketing, what percent of your total ONLINE and MOBILE ad and marketing spend do you expect will go to each type listed below in your spending for 2013? [Amounts should total 100%.] N = 499 www.borrellassociates.com
  13. 13. Social Networks Reaching Ubiquity Mean Number of Fans: 1,198 Median Number of Fans : 500 Don't know 1% Key Metrics 59% New Customers No 17% 57% Additional fans, friends, followers 48% Visits to Business website New contact information like email, phone, etc. Yes 83% 45% Visits to business Social Network pages 39% New Lead generation 39% 34% Sales volume 24% Store visits Other (please specify) None of above 2% 1% 14 How many Friends, Fans, Followers, or other users does your business Social Network have? N = 431 13 Does your company maintain a Social Network presence or page (such as Facebook, LinkedIn, Twitter, etc.)? N = 546 www.borrellassociates.com 15. Which of the following are a part of the key metrics that you use to measure the success of your social marketing programs? [Select all that apply.] N = 431
  14. 14. Facebook is Top Dog, but Google+ in the Mix Social Sites Used Facebook or FacebookConnect 70% GooglePlaces/Google+ 42% Twitter 33% Yahoo Local 19% Yelp 20% Pinterest 15% Foursquare 11% Bing 10% Tumblr Other (please specify) None of above 3% 4% 20% 29. On which, if any, of the following websites does your business or company have a listing that your business or company wrote and placed? N = 509 www.borrellassociates.com
  15. 15. ‘Social Search’ is on SMBs’ Radar 70% 55% 50% 24% 26% 21% 25% 23% 22% 9% "Social Search" tools 66% Reputation management/monitoring Will use in 2013 11% Customer Accessible in-store/on Location-based advertising on facility wi-fi mobile Considering using in 2013 Neither use nor considering 35. Which of these digital and electronic programs or services will you use or are considering using in 2013? [Select one response for each item.] N = 478 www.borrellassociates.com
  16. 16. Deals Get Mixed Results Satisfaction Deals Don’t Know 2% 33% Yes 21% 32% 16% 14% No 77% 6% Very satisfied Somewhat satisfied Not very satisfied Not at all satisfied Don't know/No answer 22. Have you participated in a "Deal of the Day" or similar program where consumers purchase a certificate or coupon at a discount for your business? N = 514 How satisfied have you been with your overall "Deal of the Day" experience? N = 120 www.borrellassociates.com
  17. 17. Mobile is Becoming the New Black Importance of Digital Visibility 51% 34% 8% Very important Somewhat important Not very important 5% Not at all important 3% Don't know/Does not apply to us 32. How important is it to your company to have "high visibility" on web and mobile platforms so customers and prospects can easily find your website and your physical location? N = 308 www.borrellassociates.com
  18. 18. Demand for Mobile Marketing is Pent Up Don't know 4% Pitched Mobile Used Mobile Yes 19% No 78% Don't know 10% Likelihood Use Mobile Next 12 No 33% Yes 57% 30% 27% 18% 17% 8% Very likely Somewhat Not very likely likely Not at all likely Don’t know/Not sure 16. Has your company been pitched by any vendors to conduct mobile-based advertising or marketing campaigns or campaigns with mobile elements in the past 12 months? N = 525 www.borrellassociates.com
  19. 19. Impact From “Showrooming” “Showrooming” is the process in which a customer uses a Smartphone while in a store to evaluate and compare product pricing or purchase options. See Customers “Showrooming” 40% Physical Location 15% No 22% Very often 21% 11% Somewhat Not very often often Not at all often 4% Does not apply Don't know Impact of “Showrooming” Yes 79% 42% 24% 9% 26. Does your business maintain a brick and mortar location from which you sell physical goods or provide services directly to customers or other businesses? N = 511 10% Generally helps business and sales Generally hurts business and sales 17% 8% Little or no impact positive or negative Does not apply to our business Don't know 27. How often do you see your customers "showrooming? N = 403 28. Is it your experience that showrooming helps or hurts your business and sales? N = 402 www.borrellassociates.com
  20. 20. SMBs Directly Manage Digital and Mobile 36. Does your company write and post content for Facebook, business listings, business reviews, advertorial (native) content or other placements? N = 511 www.borrellassociates.com 31. How easy or difficult are any of the following in terms of maintaining an accurate and effective presence on the Web and in directories? N = 498
  21. 21. Detail on Managing Digital Presence 35% 30% 25% 20% 15% 10% 5% 0% Creating text to post Keeping up with Facebook Very easy Monitoring Monitoring placed Keeping up with Monitoring "free" Buying keywords comments about listings Twitter listing not your business on submitted by your various forums staff to an online publisher Somewhat easy Neither easy nor difficult Somewhat difficult Maintaining a presence on mobile phones and apps Very difficult 31. How easy or difficult are any of the following in terms of maintaining an accurate and effective presence on the Web and in directories? N = 498 www.borrellassociates.com
  22. 22. Two-Thirds Collect Customer Data (but 2/3 don’t appear to be mining it) Customer Database Loyalty Programs Don't know 1% Don't know 2% Yes 21% No 21% Yes 77% 33. Does your business maintain a "current customer" database or list for use in marketing and sales? N = 508 www.borrellassociates.com No 77% 34. Does your store or business maintain a formal "loyalty rewards" or "frequent buyer" program? N = 508
  23. 23. The Big Draw: Website Design & Hosting Digital Services Bought or Sought Website design and hosting 34% Social networking support (building and updating Facebook… 33% Lead generation programs 26% Graphic design services 24% Training/education/workshops in digital marketing for small… 19% Email solutions support 18% Event marketing support 17% Market intelligence 15% Video production 15% Media planning and placement 12% Strategic planning services 12% Media campaign management 11% Self-serve display advertising solutions Transaction enabling services None of these 10% 5% 29% 39. Which of the following advertising and marketing support services do you currently purchase or would like to have available from your media providers? [Select all that apply.] N = 477 www.borrellassociates.com
  24. 24. Do you think YOUR Advertisers Are Different? Borrell conducts thousands of SMB surveys quarterly in local markets. Find out what YOUR advertisers are planning to do next year. For more information contact Greg Harmon, senior research analyst gharmon@borrellassociates.com 415-566-4348 12/12/13 © Borrell Inc., 2013. All rights reserved 24
  25. 25. Ad Spending In Your Market Test Drive at www.adspending.com, or call 757-221-6641
  26. 26. Questions? Greg Harmon Senior Research Analyst Borrell Associates, Inc gharmon@borrellassociates.com 415-566-4348 Jim Brown Vice President, Sales Borrell Associates, Inc jbrown@borrellassocates.com 757-472-0555 See what the excitement is all about. March 3-4, 2014, in NYC

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