SMBs that use video* for advertising and promotion (Video SMBs) have more aggressive plans for media spending over the next 12 months than those that do not use video, according to Local Commerce Monitor, Wave 18, BIA/Kelsey’s survey of small and medium sized businesses. The average annual ad spend for video SMBs is $43,635, compared to $15,223 for non-video SMBs. Video SMBs allocate a large portion of their budget, 17.6%, to video. They spend roughly the same amount on social media, 17.2% of their advertising budget.
Over the past year, video SMBs spent 35.9% of their advertising budget on digital and online and have projected to increase the digital budget for the next 12 months to 38.7%. Non-video SMBs plan to spend 32.2% of their advertising budget on digital/online in the next 12 months.
When it comes to trying to sell video to this group, video is not a standalone item. Their ad budgets and allocation to social media shows that they are willing to invest in their marketing, especially social media ads. Video ads should be sold in the context of a broader and integrated campaign strategy.
Marketers will be more effective offering video with a social strategy and call-to-action (such as coupons or deals), as this group reported being heavily engaged with their customers on social media.
* There are video media included in the LCM survey: website video, Youtube, video banner/display, and other video on other sites not already mentioned.
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