What is Main Street Really Spending on Digital? And Who Are They Spending With?

Tomorrow’s Media, Understood Today
www.BorrellAssociates.com
2014 Outlook:
Digital Marketing Services
SMBs Learn the Cost of Managing Their ‘Own’ Media
October 2014

1
About This Presentation
The following presentation is based on:
1. A survey of 2,102 SMBs conducted in
August & September 2014.
2. Borrell’s database of marketing expenditures
covering 3,000 U.S. counties, found at
www.adspending.com.
A full analysis of the results can be found in
“2014 Digital Marketing Services Outlook”
on the Borrell website.
© 2014 Borrell

10/9/2014
© 2014 Borrell 2
Digital Advertising is BIG!
More than $95 billion a year
Digital Promotions is BIGGER!
More than $133 billion a year
Combined,
both are less than half of…..

© Borrell Inc., 2014. All rights reserved 3
Digital Marketing Services
Source: Borrell 2014
Sure,
digital
advertising
is cool and
sexy . . .
But the
‘dirty’
business of
digital
services is
5x bigger.
$ in Billions

10/9/2014
That $501 Billion Universe
Has 5 Galaxies
This one’s the biggest.
5 DMS Spending Categories

What’s Included in Each
Source: Borrell 2014
$ in Billions
Biggest spending
category.
Most-pitched
service.

10/9/2014
© 2014 Borrell. All rights reserved 6
Is Main Street Really Spending
That Much in Digital Services?

7
3 Out of 5 Said Yes
Source: Borrell SMB Survey, Aug.-Sept. 2014
© 2014 Borrell. All rights reserved
QUESTION: What types of digital services are you buying?
Not everybody!

Who Isn’t Buying: The S’s.
The Sweet Spot: The M’s.
Source: Borrell, Dun & Bradstreet; 2014
On average, businesses with fewer than 10 employees spend
less than $800 per year on digital services. Yes, that’s PER YEAR.

10/9/2014
© 2014 Borrell. All rights reserved 9
So, local providers dominate
the DMS scene, right?
$3 out of $5 are captured by national providers

National Providers Dominate
In every category, more
SMBs said they bought
from a non-local service
provider.

Who Are These Non-Locals?
We asked SMBs to name a company that provided exceptional service. While many
named a provider, few names popped up more than once. Below are those that did.
It’s a REALLY
fragmented
marketplace.

SMBs Are Getting Help, But A
Lot Are Still DDIYs*
* Digital Do-It-Yourselfers
High
likelihood for
growth.

10/9/2014
Brace Yourself
It’s About to Get Scary

10/9/2014
When We Asked SMBs
To Tell Us What They
Thought,
The Floodgates Opened

10/9/2014
Sales Reps Are Bugging Them
“(I am) overwhelmed by salespeople
creating confusion. Everyone has the
magic solution.”

1 Pitch Per Day; Some Say Dozens

10/9/2014
“Have found that I need less and less
advertising. Our business is built on word-
of-mouth referrals from past clients and
customers.”
Classic ‘Ads’ Are Less Attractive
Source: Comment from Borrell SMB Survey, Aug.-Sept. 2014

10/9/2014
“My biggest challenges are keeping
abreast of all the new trends in social
media and the best ways to reach my
customer, and finding the time to
manage it all.”
Change is Confusing Them

10/9/2014
“ROI seems to be minimal at best. Very
few clients have contacted me because
of any kind of advertising or marketing;
it seems to be mostly word-of-mouth. “
And They’re Skeptical of ROI

Which Is Why . . .
They’re
putting so
much effort
here.
QUESTION: Which of the following best provides you with new customers?

And Here’s How They Gauge
All That Digital Success
QUESTION: How do you measure the success of your social media programs?

10/9/2014

Let’s Summarize
 The Deer Have the Guns
 They’re Pestered by Reps
 They’re Confused by Choices
 Not All Are Buying
 Success = Referrals, Likes

Thus, A Good Strategy . . .
 The Deer Have the Guns
 They’re Pestered by Reps
 They’re Confused
 Not All Are Buying
 Success = Referrals, Likes
 Teach Them to Shoot
 Win Their Trust
 Educate Them
 Target Accurately
 Drive Those Results

 Show them misfires
 Do consultative sales
 Hold local seminars
 Use Borrell Data!*
 Offer measurements
And The Tactics . . .
 Teach Them to Shoot
 Win Their Trust
 Educate Them
 Target Accurately
 Drive Those Results
* This is not a sales pitch. It is sage advice. Check out www.adspending.com.

What is Main Street Really Spending on Digital? And Who Are They Spending With?

What is Main Street Really Spending on Digital? And Who Are They Spending With?

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What is Main Street Really Spending on Digital? And Who Are They Spending With?