The rise of digital and online marketing tools has sent many small- and medium-sized businesses back to the drawing board, as these companies are looking to leverage new channels to boost their marketing campaigns.
According to a new study from BIA/Kelsey, traditional advertising will represent only 30 percent of SMB marketing budgets by 2015, a significant dip from 52 percent in 2010. Instead, SMBs will be turning toward new channels, such as mobile, social media marketing and online content marketing, to drive their campaigns.
In total, SMBs in the United States are expected to spend more than $40 billion on marketing and business solutions in 2015. However, traditional marketing spend will remain relatively flat from 2010 to 2015, increasing from $11.8 billion to $12.1 billion.
Digital and online media marketing spend will increase significantly during this period, growing from $5.4 billion to $16.6 billion. According to the report, many SMBs are finding these tools useful for connecting with consumers, enabling them to offer special deals and digital coupons that can help fuel business.
“With the advent of daily deals to drive customer acquisition, SMBs are now increasingly focused on leveraging technological solutions to engage, grow and retain a higher percentage of their customers,” said BIA/Kelsey president Neal Polachek.
This increased focus on online marketing is reflected in other reports as well. As Brafton reported, Forrester estimates that companies will spend nearly $77 billion on interactive marketing in 2016, and the Custom Content Council found that online content marketing spend surpassed $12.5 billion last year.