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BIA: 60% of Home and Trade Services Businesses to Stay Steady on 2019 Advertising

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Your local plumbers, electricians and HVAC contractors tell researchers that they’re happy with the state of business this year. The booming economy means that 60% of these businesses will not be spending more on advertising in 2019. These results are from SAM™, BIA’s Survey of Advertising and Marketing.

Average Budgets

The average trade business spends about $37,150 on advertising. Of that amount, $6,040 relates to promotions. The HVAC sector may be especially prone to promotional advertising. These contractors and installers often qualify for co-op advertising support from their vendors who want to sell heating units in advance of winter and air conditioning units in advance of summer. You can find information on co-op advertising programs and limited time opportunities on AdMall from SalesFuel.com.

Traditional Advertising

You should also be talking with these clients about their media mix and how well it’s working for them. BIA findings indicate that the average home and trade service business spends about 48.1% of its advertising budget on traditional media formats. They often deliver items like flyers directly to consumer residences. These SMB owners also rely on direct mail, newspapers and traditional yellow page advertising. They tell researchers that, for traditional media formats, broadcast TV and radio deliver the highest ROI.

Social Media Advertising

Targeted social media ads rule with a second-place position in terms of use frequency. A related survey from the Construction Marketing Association reports that 94% of construction professionals, and this includes plumbers, electricians and home repair and remodeling businesses, use social media. Specifically, 49% have paid to advertise on Facebook. And, 36% say Facebook is their most effective social network. At least 70% say social media advertising has resulted in better brand awareness for them.

Your local trade businesses may not be prepared to increase their ad budgets this year. But, they might want to hear about vendor promotions and how they can reduce the cost of their advertising. They might also need help improving their social media strategy.

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.