BY Kathy Crosett
SMBs in your local market are already planning their first quarter-activities. They also know that the SMB advertising market will change next year. If you’re trying to win their media business, here’s what you need to know.
The SMB Outlook
The latest QuickBooks Small Business Insights quarterly survey shows that 11% of SMBs want fast growth. Around 69% are comfortable with steady growth. Growth of any kind in the current economic climate can be a challenge.
In addition to growth, these accounts must also track profitability. For nearly two years, their biggest challenge has been rising costs — 49%. Specifically, technology, wages and domestic supplier costs have led the way.
Similarly, around 36% of SMB executives surveyed in our B2B BuyerSCAN survey reported that the economy will continue to be a key concern through the next two years.
Advertising Plans for SMBs
One way to drive profitable growth is to run effective ad campaigns. Around 50% of SMBs realize they need a successful advertising strategy. In Q1 next year, 28% intend to run new sales/marketing campaigns. This intention may be a new feature of the SMB advertising market next year.
These campaigns can help the 30% of SMBs who are seeking ways to reduce customer churn or boost revenue from existing customers.
Our proprietary research shows the following planned use of advertising for SMBs:
- Mass media advertising like radio, TV, direct mail, print 20.5%
- OTT/CTV advertising 7.5%
- Online advertising 27%
- Website/mobile app development 25%
- Search engine marketing 19%
In addition, 24% of SMB owners say social media is one of the most useful tools for their business.
The Value of AI
They also recognize the value of applying technology to their work processes. Their attitudes about AI are positive. In fact, around 44% use AI for their marketing needs. They’ve recognized that this technology can save them time when they need to draft great ad copy.
Keep in mind that you can tap into the AI Idea Generator provided with a subscription to AdMall. This tool provides everything from ad copy ideas to suggested keywords to blog post text.
How to Sell Services to SMB Owners
SMB owners are busy people. To attract their attention, you must be present in the media spaces they pay attention to. This is an important detail in the SMB advertising market.
Our research shows 42% have responded to emailed ads or newsletters in the past month. Their response is most often an internet search, 47%, which means your accounts must have their websites updated.
What could your accounts offer to attract the attention and eventual business from SMBs who enter the purchase funnel? 44% will share their contact info to get primary research that is relevant to their business. And 35% say that getting value through a webinar increases their consideration of a vendor’s solution.
How to Outshine the Competition
As a new supplier, you’ll face plenty of competition. At least 43% of these prospects have discussed their needs with their current suppliers. You’ll need to deliver an excellent value proposition in the SMB advertising market to break through. The good news is that 34% of these SMBs will support locally owned businesses so you’ll want to emphasize your local roots.
You’ll also want to make sure your customer ratings and review on social media shine. Around 46% of this audience will be using that source to check out how you have served other businesses.
As you prepare your pitch for SMB accounts, learn about their frustrations. For example, 15% say they can’t measure the ROI from advertising. Be sure to address this point in your proposals.
Generating ad sales from local SMBs next year won’t be easier than it is now. But these prospects need to advertise to increase the awareness of their target audience. When you provide the right data in the right context, they will notice and be more willing to talk with you.
Image by Andrea Piacquadio on Pexels.
