Yesterday I wrote about how small businesses that use co-op advertising funds are heavy users of traditional media, particularly community sponsorships and direct mail. When we look at what digital advertising channels co-op users are adopting – video is key. According to results from our Local Commerce Monitor™ survey of small businesses (Q3/2016), 53.8% of co-op advertising users had at least one video produced in the last 12 months, more than double the small businesses in the full sample where only 21.4% had a video produced. Both the co-op advertising users and the small businesses in the full sample overwhelmingly picked “made ourselves” when asked about video production. The next most popular was video tools offered by social media channels.
Co-op users’ interest in digital advertising, such as video, may come from brands being more open to digital advertising opportunities. The Local Search Association‘s co-operative advertising data shows that hundreds of brands offer digital co-op advertising programs and some put more emphasis on digital than others. According to the LSA, one auto manufacturer now requires 50% of co-op funds be spent on digital.
For more details on small businesses that use co-op advertising funds, such as how much they spend and and where they spend it, check out our latest Small Business Research Report.
BIA/Kelsey’s LCM, Wave 20 reports can be purchased a la carte in the BIA/Kelsey eStore. Our LCM reports look at where particular SMBs (broken out by size, vertical, etc.) spend the most, as well as the top channels for marketing and advertising. Additionally, our reports provide analysis on the best product and service offers for highly coveted groups of SMBs.