What's Hot in Small Business – Chris Crum
|Chris Crum has been a featured writer with the WebProNews.com team and the iEntry Network of B2B Publications since 2003. Chris writes for Small Business Resources about social media, search, and what’s new for small business. Hundreds of publications link to Chris’ articles including the Wall Street Journal, USA Today, LA Times and the New York Times.|
SMB's Plan To Spend More On Online Marketing
Many small and midsize businesses intend to start spending more money on internet marketing this year, a new survey found. 37% indicated this to be the case.
This is just one of the stand-out stats from the survey, which was conducted by local search engine optimization firm BrightLocal in partnership with ChamberOfCommerce.com.
Out of those surveyed, 70% are spending less than $500 on marketing per month. That's down 3% from the previous year. 83% are spending less than $1,000 per month (down from 85%), and only 16% are spending over $1,000 per month on marketing. That's actually flat year over year.
34% allocate less than 10% of their marketing budget to online channels. That's up from 33% in 2013. 50% allocate less than 30% (up from 49%) in 2013, and 29% allocate more than 70%, which is up from 29% in 2013.
"In similar results to 2013, half of all SMBs spend less than 30% of their marketing budget online," the report says. "We’ve already learned that 83% are spending less than $1,000 a month on marketing, which means that 50% are spending less than $300 a month on internet marketing."
Turning to 2015, 37% of those small and midsize businesses polled said they do plan to increase the amount of money they spend on internet marketing over the course of the next twelve months. That's compared to just 21% in 2014. 47% of these small and midsize businesses are unsure whether or not they will increase their online marketing budgets. That's actually the exact same percentage as in 2013.
Only a measly 16% have absolutely no plans to increase their internet marketing spend over the course of the next twelve months. That particular stat has seen a huge drop from 32% in 2013. Okay, so 16% isn't exactly measly, but compared to last year, that's a pretty big drop off.
The bottom line is that more and more small and midsize businesses are finally waking up to the fact that online presence is a major part of getting feet in the door, and unfortunately, that doesn't come without shelling out some dollars to help make it happen.
In fact, there are elements in the online landscape at play, such as organic reach on Facebook, that directly cause businesses to have to pay. Facebook used to be pretty great for businesses who wanted to get a message out to their fans and followers. It can still be great for that, but whereas it used to be great for that for free, you now have to pay if you want to get in front of the same amount of eyeballs.
Some businesses complaint that even paid reach on Facebook doesn't do as well as it used to, so many are having to pay even more money to reach the same number of people. It's not getting easier. I know that much is true.
Of course Facebook is only one of many online channels for reaching consumers, albeit a very significant one. As more and more businesses turn to the internet with more of their marketing dollars, we can probably expect to see a lot of experimentation with different channels throughout the course of this year.