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.

1. www.BorrellAssociates.com
Tomorrow’s Media, Understood Today
SMB Marketing Patterns
Q2 and Q3 2013 Surveys
December 2013

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. ‘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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Ad Spending In Your Market
Test Drive at www.adspending.com, or call 757-221-6641

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
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