Small Businesses Advertise with Media Mix, Report Finds
A BIA/Kelsey report of higher-spending midmarket companies stracks SMBs spending $25,000 or more annually on media advertising and promotion.Higher-spending small and midsize business advertisers use 6.5 different media on average in their promotional mix, compared with 3.1 different media used by the broader SMB advertiser population, according to findings from the first wave of research firm BIA/Kelsey's LCM: SMB Plus Spenders study. The survey indicated higher-spending midmarket companies are online and use a variety of online media advertising channels: A full 90 percent of SMB Plus Spenders have a Website, versus 62 percent of core LCM (Local Commerce Monitor) SMBs. The study found these SMBs use more types of online media, and spend more for online advertising: In the past 12 months, Plus Spenders spent 26 percent of their total ad budget on online media, versus 21.8 percent for core LCM SMBs, a difference of 4.2 points. They also spend an appreciable amount of their total budget on broadcast media, the report found: 16.1 percent of their budget is allocated to broadcast media compared with 1.3 percent for all SMBs.
Midmarket companies with a larger advertising budget also appear to have a strong focus on media performance in making media buying decisions: 40 percent rated "demonstration of ROI" as the first or second most important service that a vendor of online advertising can provide. "We launched this survey in response to the numerous inquiries from key players in the local, social and geo media space, who are seeking to better understand the behaviors and needs of higher-spending SMBs," explained BIA/Kelsey president Neal Polachek.