Last week I highlighted WebVisible’s report on the increased use of search marketing by small businesses. Another research concern, VerticalResponse also reported that search engine marketing will be a key 2010 expenditure for smaller operators. And according to VerticalResponse, small business owners are planning a number of budget cuts to traditional media formats next year.
About half of small businesses, 56.6% of those with fewer than 11 staff members and 48.2% of those with between 11 and 100 staff members, will not use online banner advertising in 2010. The VerticalResponse report also indicates that small business owners are relying less on media formats such as TV and radio. Nearly 80% of survey respondents say they do not plan to use TV next year and 72.7% do not plan to use radio advertising.
As small business operators take actions similar to those employed by larger firms, VerticalResponse CEO and founder Janine Popick believes “marketers need to help small businesses to see the value of integrating search engine marketing such as Google, Yahoo and Bing into their campaigns.”
The shift from traditional to newer forms of marketing will result in some cost savings for small marketers. For example, social media and email campaigns can cost significantly less than TV and radio. However, paid, integrated search engine marketing can be expensive, especially if the campaigns are not carefully targeted. Marketers who efficiently deploy and manage search engine campaigns stand to gain market share and improve profitability in 2010.[Source: State of Small Business, VerticalResponse, Fall 2009 release]