If you are still focusing the bulk of your advertising efforts on traditional venues such as print ads and direct mail, you could be missing out—and you’re definitely marching to the beat of a different drummer than most small businesses, reports a new U.S. SMB Spending Forecast by BIA/Kelsey. The study found that small and midsized companies (SMBs) are shifting their marketing budgets online.
By 2015, the study reports, 30 percent of SMBs’ marketing budgets will be spent on traditional advertising—a decrease from 52 percent in 2010. Here’s where the other 70 percent of their ad budgets will go:
What’s more, despite the recession, U.S. SMBs are planning to increase their spending on media, marketing and business solutions by 12 percent per year—from $22.4 billion in 2010 to $40.2 billion in 2015.
Within that overall amount, online/digital media spending will grow the most, increasing by 24.9 percent by 2015. By contrast, traditional advertising spending will remain pretty much flat between 2010 and 2015, growing at just 0.6 percent annually.
What does this news mean to your business? First, I will admit that not one size fits all. So if you find that your current mix of traditional advertising is working for you, then great. But if you are saying that without ever having tried digital methods, then I urge you to at least give them a try.
“Digital marketing” sounds intimidating, but it’s really all about simple things like email newsletters, social media or building a basic website. These are things that in the 21st century, every business should be doing—and as the BIA study shows, most of them are. Why aren’t you?
If you need help figuring out your marketing mix, a SCORE mentor can guide you. Visit the SCORE website 24/7 for free advice.