Small Businesses Use Advisors For Co-op Ad Spend
Co-op advertising dollars go unused each year because small businesses are not always aware of the programs available or are unable to navigate the co-op advertising process. It’s no surprise that the majority-93% look to a third party like an agency or a traditional media (TV, cable, radio, yellow pages, newspaper, etc.) sales person to recommend and spend digital co-op ad dollars. In fact the majority of small businesses that use co-op programs and money in their advertising budget are planning on increasing their spend in 2018. While most businesses say they are increasing budgets, there is also an increase in co-op coverage for franchisees. What opportunities are there for agencies and media sales with franchisees?
Co-op small business users are using and spending more on mobile and social advertising. When it comes to spend, mobile increased by 5-6% versus social which only increased 2-3% from last year. Along with digital spend this group is also investing more in content marketing for digital. According to our small business survey, The Local Commerce Monitor, Wave 21 (2017) this in addition to their large ad budgets (and not usually covered under co-op programs). Analysis on our co-op respondents show they are robust ad spenders on top of co-op and there’s lots of opportunity in verticals this year.
BIA/Kelsey’s LCM, Wave 21 reports including the franchise and co-op reports can be purchased a la carte in the BIA/Kelsey eStore. Subscribers of BIA ADVantage can view the research from the online dashboard found here.