SMBs That Use Mobile Advertising Outspend Those That Don’t

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SMBs that use mobile* for advertising and promotion (Mobile SMBs) outspend those that don’t, according to a new report from Local Commerce Monitor, Wave 19, BIA/Kelsey’s survey of small and medium sized businesses.

We looked at the average annual spend by Core SMBs and Plus Spenders**. For both categories, Mobile SMBs significantly outspent their non-mobile counterparts. Core SMBs that use mobile advertising spent an average $3,921 annually on advertising and promotion, compared to $2,121 for Core SMBs that do not.

Among Plus Spenders, mobile advertisers spent an average $81,663 annually, compared to $72,847 for non-mobile advertisers. Mobile SMBs also allocate a larger percentage of their advertising budget to digital media than non-Mobile SMBs, 42.5% vs. 31.3% over the past 12 months.

“It stands to reason that SMBs advertising with mobile index higher for overall spending levels,” says Mike Boland, Chief Analyst at BIA/Kelsey. “Due to mobile’s relatively nascent adoption among SMBs, there’s a correlation between early adopters and higher-resourced businesses that can spend more.”

Social media (particularly Facebook) and digital presence (website, mobile site) were the most popular advertising media used. Nearly 3/4 of Mobile SMBs use a Facebook page for advertising and promotion.

Mobile SMBs are solid in their adoption and intentions for targeted social and mobile. Offering them a bundle of mobile/social presence with targeted ad campaigns is key for this group.

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*The mobile media included in the LCM survey: enhanced listing in mobile app, mobile app, mobile display, mobile location aware, mobile search, mobile website, other mobile, text messaging.

**Core SMBs have an annual spend of less than $25,000. Plus Spenders have an annual spend of at least $25,000.

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Click here to purchase the SMBs That Use Mobile for Advertising and Marketing — LCM Wave 19 report. To purchase any of our other Local Commerce Monitor drill-down reports, check out our new BIA/Kelsey Shop.

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