Are You Targeting Big Ad Spenders in Your Market?
Are there certain kinds of local businesses that prefer to advertise on TV? BIA/Kelsey research indicates TV media sales reps may have better success going after specific categories of business. The findings are based on the research company’s latest Local Commerce Monitor.
BIA/Kelsey has long segmented businesses in the local marketplace into two categories. Businesses that spend less on advertising are classified as Core Spenders. These SMBs allocate an average of $3,856 for annual advertising. While they are certainly worthy of your attention, you may want to focus on what BIA/Kelsey analysts call the Plus Spenders. With an annual average ad budget of $75,132, these businesses have the resources and the commitment to expand their presence in the local marketplace.
Plus Spenders are also larger overall than the Core Spenders. The typical Plus Spender SMB employs over 38 workers. In comparison, Core Spenders have about 20 employees.
When it comes cable/TV advertising, Plus Spenders are interested. You’re likely to find them in the financial services, professional services and retail industries. Another distinguishing feature of these businesses is that they are often franchisees with several locations in one market. Reps who meet with these SMB owners can score a scale that covers multiple establishments.
While these businesses like advertising on TV, they also use digital in a big way. Over 60% have created videos in the past year. These videos are showing up on:
- Websites 25.5%
- YouTube 23.1%
- In Video Display Ads 22.1%
These statistics make the local credit union or the franchised tax office owners sound sophisticated. These folks likely know plenty about the businesses they’re operating. Being typical SMB owners, one of the biggest problems they face is a lack of time. Specifically, they don’t have enough time or expertise to manage their advertising.
Over 80% of Plus Spender SMBs use a local advertising agency. For 83% of these owners, an outside company handles their digital needs. These businesses get the importance of advertising. They have money to spend and they’re willing to work with outside experts.
Start talking to these prospects and show them the value of the services you have to offer.