SMB Data Point of the Week: Larger SMBs Ad Spend is Higher on Video and Mobile

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Larger SMBs, those spending more than $25,000 annually on advertising and promotion, are known as Plus Spenders in BIA/Kelsey’s Local Commerce Monitor™ (LCM) survey of small and medium businesses. These Plus Spenders spend an average $75,169 annually for advertising and promotion. As you can see in the table below, Plus Spenders that use newspaper for advertising and promotion spend an average $64,670 annually. Plus Spenders that use video(3), on the other hand, spend considerably more annually, $87,923 on average.

(These categories are not mutually exclusive. Many Plus Spender SMB respondents are counted in numerous categories. Plus Spenders use an average of 12.9 media for their advertising and promotion).

Q101 - Plus - Media Used

While these Plus Spender SMBs use the media categories shown in the chart above for advertising and promotion, only a percentage of their average annual ad spend goes towards those categories, as shown below.

  • Social Media Users(1) – 21.0% of ad budget spent on social media
  • Newspaper Users – 13.4% of ad budget spent on newspaper
  • Directories Users(2) – 11.8% of ad budget spent on directories
  • Video Users(3) – 9.9% of ad budget spent on video
  • Mobile Users(4) – 14.0% of ad budget spent on mobile
  • Broadcast Users(5) – 13.7% of ad budget spent on broadcast

  1. Social Media: includes channels such as Facebook, Twitter, LinkedIn, and other social.
  2. Directories: various print and digital directories/yellow pages.
  3. Video: website video and video on other websites
  4. Mobile: text messaging, search, display, apps and other mobile channels.
  5. Broadcast: TV and cable

This Post Has 2 Comments

  1. Gordon Borrell

    Interesting, and useful. How large is the subsample of businesses spending more than $25,000, in # of respondents in your Q3 2015 sample?

  2. Suzanne Ackley

    Gordon, there are 1,010 respondents in our full sample. Of these, 252 spend a minimum of $25,000 annually on advertising and promotion.

    Suzanne

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