More than 90 Percent of SMBs Will Increase Advertising Spending in 2019Friday, April 26, 2019
Posted by Reagan Reeve
Most SMBs are prioritizing advertising this year and will increase spending on social media advertising (56%) and other online advertising mediums such as Google search and banner ads (41%).
Nearly all SMBs (91%) plan to invest more in advertising in 2019, according to a new survey from The Manifest, a business news and how-to website. Annually, more than half of SMBs (57%) spend less than $50,000 on advertising, the survey found. Increased spending on advertising will help SMBs spread brand awareness and stand out among their competition.
"It really is critical to advertise and get your name out there because otherwise, you get lost," said Tim Smith, director of communications and media planning at IPNY, an advertising agency in New York.
Millennial Business Owners Spend More on Advertising
Millennials value advertising more than older business owners. About 61% of millennial business owners spend more than $50,000 on advertising annually, while 52% of baby boomer business owners spend less than $10,000. Millennials grew up with both traditional and digital advertising, and this experience makes them more willing to spend money on advertising.
"It's the world [millennials] have grown up in, and they've seen other businesses be successful that way," said Josh Ryther, senior partner at Deksia, a marketing strategy agency in Michigan.
SMBs Will Spend More on Digital Advertising
SMBs will increase spending on a variety of advertising channels, but most plan to spend more on social media advertising (56%) and other online advertising such as Google search, banner, and retargeted ads (41%). SMBs are focusing on digital advertising because it's an easy way to reach consumers where they spend time – online.
"Digital advertising reflects the way people shop today, which is online, and offers targeting opportunities that weren't possible before," said Harry Chapin, CEO and founder of Forge Worldwide, a brand-building company in Boston. Digital advertising allows businesses to target people based on specific demographics. This ensures their advertising budget doesn't go to waste reaching people who are unlikely to convert.
"We've tried bus benches, billboards, print, and Yellow Pages, but nothing comes close to the ROI we are able to extract from online advertising," said Sean Pour, marketing manager of SellMax, a company that buys people's used cars.
Small Businesses Advertise Mainly to Increase Sales and Revenue
Although ads costs money, a successful advertising strategy helps small businesses make money in the long run. About one-third of SMBs (32%) say that their main goal for advertising is to increase sales and revenue. "The goal of advertising is to simply create brand recognition for SMBs in order to increase brand engagement and overall sales," said Les Kollegian, CEO of Jacob Tyler, a brand experience agency in California.
Overall, the survey shows that advertising is a beneficial investment for most SMBs and that businesses will continue to allocate time, money, and resources toward advertising. The Manifest's 2019 Small Business Advertising Survey included 529 SMB owners and managers across the U.S.
Read the full report here: https://themanifest.com/advertising/small-business-advertising-spending-2019.