Over 75% of Franchisees to Boost Ad Spending This Year

BY Kathy Crosett
Featured image for “Over 75% of Franchisees to Boost Ad Spending This Year”

Franchised businesses in your local market have plenty of money to spend on advertising. The latest research from BIA/​Kelsey reveals that PlusSpender franchisees, with an ad budget of $86,275, are leading the way. In addition, franchisees are showing big interest in mobile advertising for 2018.

In a study conducted by BIA/​Kelsey and Vya, franchisees indicated they are feeling positive about the economy. With over 77% of these businesses planning to increase ad spending, nearly 20% will leave their budgets at the same levels as last year.  Smaller franchisees have been particularly aggressive about boosting ad spending and now have average ad budgets of about $5,697.

The typical franchisee uses at least 20 forms of advertising, compared to 15 formats for the average small business. The research also shows that franchisees are willing to put their ad money into the formats consumers are using. For example, franchisees have flocked to Snapchat. At least 8.8% of these businesses use this social tool. Only 4.1% of other small businesses do.

Mobile is also key for franchisees with the following formats being most popular:

  • Sensors/​beacons 53.8%
  • Text messages 41.1%
  • Mobile display 40.0%
  • Mobile app 29.6%
  • Mobile website 27.5%

Franchisees are not abandoning traditional media in their rush to mobile. In fact, direct mail is the most frequently used advertising vehicle for these businesses. At least 62.8% of these businesses are sending out fliers, post cards, and on a regular basis. In addition, radio remains a favorite traditional advertising format with 54.2% of franchisees running ads.

Loyalty programs remain a solid way for franchisees to ensure return business. These programs are particularly popular in the technology (36.0%), retail (37.3%) and financial services (26.7%) sectors. One way for franchisees to boost enrollment in their loyalty programs is to advertise their benefits.

Talk to franchised business owners in your market about where they should be spending their ad budgets in 2018.