BIA: 60% of Franchisees to Boost 2019 Ad Spending

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Franchisees make great targets for your media sales efforts. These small and medium-sized (SMB) owners use up 16 media formats to connect with target audiences in local markets. This spending represents great opportunity for you. In addition, BIA analysts project that over 60% of these businesses will boost ad spending this year.

The BIA 2019 Survey of Advertising and Marketing reveals that the typical franchisee will spend $64,000 on advertising this year. That spending will be allocated to the following media formats:

  • Traditional 29.3%
  • Digital 25.7%
  • Mobile 21.0%
  • Social 12.1%
  • Other 12.0%

New Media Formats

Franchisees often contribute a portion of revenue to the parent organization for marketing purposes. That organization may pool the funds and develop regional and local campaigns to support the brand.

In addition, local franchisees buy local market media. BIA analysts report that these SMB owners are also willing to experiment with new media formats. For example, 84.2% use targeted social ads and 71% use mobile location aware ads. Because local market advertising is often intended to drive traffic, at least 35% of franchisees use mobile digital deals and coupons.

Franchisees don’t just rely on digital though. The BIA SIM finds that nearly 50% of these businesses use direct mail. And this format delivers a 72% ROI for them.


In today’s data-rich environment, franchisees aren’t content to guess at how well their advertising efforts are doing. At least 33% using Google analytics to keep track of how well Google’s tools are working for them. And nearly half, 46.4%, use other vendor data to determine their ROI. About 25% track their data themselves. That’s a huge effort and could be a potential source of business for companies offering digital marketing services.

Franchisees point out that their top ROI comes from Internet Yellow pages (83.9%.) Close behind is native/sponsored advertising at 80.0% and online display at 79.1 percent.

To learn about the ad spending requirements for specific franchisees, check out the Major Account Intelligence Reports available on AdMall from SalesFuel​.com.

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-owner of several small businesses in the health care services sector.
January 12, 2019 Media + Marketing Tags: , ,