SMB Data Point of the Week: Higher Spending SMBs and Social Media
According to BIA/Kelsey’s Local Commerce Monitor (LCM), survey of small- and medium-sized businesses, the higher spending Plus Spender SMBs* had an average annual spend of $75,169 for advertising and promotion. The Plus Spenders spent an average of 17.8% of their advertising budget on social media, which works out to be about $13,380 a year.
The percentage of ad spend going to social media for Plus Spender SMBs has been growing from year to year. Their total ad spend, however, has remained fairly consistent. This indicates that while they are experiencing cost savings resulting from the use of social and digital media, they are reinvesting the savings into their advertising and promotion.
*The full sample of SMBs in the LCM survey is divided into two groups: Core SMBs and Plus Spenders. Core SMBs are those that have an annual spend of less than $25,000, while Plus Spenders are those with an annual spend of at least $25,000.