BY Kathy Crosett
How businesses plan to address challenges
The State of Local Business Advertising, published by direct mail services provider Clipp, reveals that small businesses have already adjusted their marketing strategy. They’ve taken these steps to protect market share:
- Dropped prices 49%
- Used new advertising formats 45%
- Offered discounts/
incentives 40%
How SMBs are adjusting for AI search visibility
SMBs are also paying attention to AI visibility, according to a Semify report published by eMarketer. Specifically, they’ve noticed:
- More traffic from AI tools like ChatGPT 38.7%
- Fewer clicks from organic search efforts 33.3%
SMB owners are quickly coming up the learning curve regarding AI visibility. In the past, your SMB accounts invested in search content to rise to the top of organic search results lists.
Now 76% of surveyed businesses realize they must have their business appear “as a citation or recommendation in AI-
They are also struggling with ROI questions when it comes to AI visibility. They suspect that AI is leading customers to them. But they can’t prove it. 56% believe measuring ROI from AI visibility is a big challenge. But 33% complain that the CPCs are a rising expense.
One way to improve SMB advertising outcomes is to update online content. Better AI visibility is linked to question-
How reviews impact AI search visibility
Remind your SMB accounts to be more proactive about review management. These data points add up for AI search visibility. It’s critically important for marketers to act quickly on reviews whether they are positive or not. Doing so is another way to stand apart from the competition. If your SMB accounts don’t have time to manage reviews, pitch them on your services.
How to improve ROI on Advertising
Besides focusing on content and AI search visibility, marketers are struggling with how to get more from their advertising investment. They’re concerned about:
- Expense 43%
- Connecting with the right audience 37%
- Using the right offer 29%
The focus on SMB advertising expense translates into a fear of making a mistake with ad budgets. SMB owners tend to first consider the cost of advertising when reviewing formats (47.3%).
As a media seller, if you can show them evidence of other accounts’ success, they’ll reconsider. With AudienceSCAN by AdMall data, you can also give them data on what percentage of their target audience acts after noticing an ad in a specific media format.
SMB owners also prefer using what they’ve used before (42%) and what’s easy (40.9%). That’s understandable. They don’t have a lot of time to figure out how to change strategies. As a media seller, you can educate them on how to improve outcomes. AdMall’s Digital Audit allows you to compare your account’s activities with what competitors are doing.
SMB advertising outlook
Going forward, here’s where your accounts expect to increase ad spending:
- Social 51% (will increase)
- Digital 45%
- Event 34%
- Radio 29%
- TV 28%
- Direct mail 24%
On every level, they know they need to consider AI. For many, a trusted partner who understands the role of AI in improving marketer visibility is invaluable. SMB owners are seeking advertising partners who are reliable (49.6%) and service oriented (39.7%). Over 33% will also switch to a partner that can deliver better targeting. Keep these stats in mind as you prepare your presentations.
Summary
SMB owners are looking forward to a better year. But to realistically compete, they’ll need to change their SMB advertising practices. And they need to take advantage of AI. You can help them with these challenges.
Frequently Asked Questions
How can SMBs improve their visibility in AI-
SMBs can improve AI search visibility by creating question-
Why is measuring advertising ROI a challenge for small businesses?
Small businesses often struggle to connect advertising investments with measurable results. Research shows that 56% consider measuring ROI from AI search visibility a major challenge, while 43% cite advertising expenses as a concern. Media sellers can help SMBs overcome these challenges by providing audience insights, campaign performance data and evidence of successful advertising strategies.
Which advertising channels are SMBs planning to invest more in?
Small businesses expect to increase advertising spending across several channels. Social media leads the way, with 51% planning to increase investment, followed by digital advertising (45%), event marketing (34%), radio (29%), television (28%) and direct mail (24%).
What do small businesses look for in an advertising partner?
SMB owners prioritize reliability, customer service and effective audience targeting when selecting advertising partners. Nearly half (49.6%) value reliability, while 39.7% emphasize service. Additionally, more than one-
Image by Kampus Productions on Pexels.
