SMBs hope the worst of the pandemic is behind them. To reconnect with consumers, experts expect 30% of SMBs to increase their ad spending by 35% in 2021. Borrell Associates also reports that 36% will spend the same amount this year that they spent in 2020.
Media Buying Plans and Partners
These business owners have already been busy with respect to their ad budgets. Just over half, 53%, have scheduled their social media ad buys for Q1 and 45% have done with same with local media companies for the same timeframe. In addition, 31% of SMBs have already ordered their media placements for the full year. This activity level suggests that media sales reps must work in advance to win the attention and ad budgets of SMB owners.
Local business owners have a wide range of partners to choose from when it’s time to run a branding or promotional campaign. You can position yourself advantageously by behaving credibly. This means being responsive to your clients' needs, developing a long-term relationship and delivering results for them. If you stay one step ahead of your clients and notify them of trends in their industry before they've heard the news, you are providing value that they won't ignore.
The Local Marketplace
The Borrell survey, conducted in December 2020, underscores the reality of the local marketplace for SMBs. About 44% say they are doing well, while 43% still haven’t found the traction they need to operate comfortably. These percentages were echoed in the Small Business Optimism Index recently published by NFIB. With the index measured at 95.9, analysts pointed out that SMB owners are worried that COVID-19 will negatively impact their situation for at least another six months. The 95.9 number represents lowest value for the index in several decades.
While these findings are concerning, you can help your clients appeal to consumer emotions. According to Shopify, the pandemic has made consumers more interested in supporting local businesses. At least 50% of shoppers want to buy local and unique items. But there's a catch.
These shoppers also want the same level of service they’ve become accustomed to when dealing with the likes of Amazon. Remind your clients to ramp up their online retailing capability. Along with that, consumers want free delivery (59%), free returns (40%), and fast delivery (34%). This service level can be difficult for small businesses to provide profitably. They may need to engage in additional creative thinking. Because 23% of consumers believe that shopping local reduces their environmental footprint, your clients can leverage that detail in their ad campaigns.
30% of SMBs to Increase Their Ad Spending
It's easy to say that we expect 30% of SMBs to increase their ad spending this year. Actually accessing those funds as a media seller is another challenge. Use the AudienceSCAN profiles in AdMall by SalesFuel to help your clients target the consumers they need to reach with their ad campaigns. Then continue to deliver value to increase your credibility and visibility with these products.