BY Kathy Crosett
Small and midsize businesses continue to lean heavily on digital channels to reach new customers, but their media choices are shifting. New research sheds light on how SMB online marketing is changing. As economic pressures intensify and budgets tighten, these insights offer important guidance for media sellers and agencies serving SMB clients.
SMB Top Concerns for the New Year
What are these accounts most worried about going into next year? For businesses that participated in the 2026 Local IQ Small Business Marketing Trends Report, the responses break out as follows:
- Economic uncertainty 66%
- Generating new business 59%
- Optimizing their marketing budget 59%
As a comparison, media sales managers in our State of Media Sales survey report that their biggest challenges include unpredictable economy (68%), inflation (51%) and changes in how buyers purchase products/services (46%).
The shared concern about the economy may be one way for media and digital services sellers to begin a conversion about SMB online marketing.
Social Media Marketing Trends
It’s no surprise that most small businesses are using social media marketing (66%) and social media ads (56%). While social media marketing and advertising remain core tactics for most SMBs, activity is cooling on platforms like X, TikTok and Snapchat. Meanwhile, Facebook still rules as the platform where SMBs invest significant energy and effort.
Traditional Media Trends
At the same time, traditional media usage is making a quiet comeback, signaling a more diversified approach to reaching consumers. One interesting data point is that the number of small businesses using traditional media jumped from 23% last year to 28% this year.
Marketing Channel Satisfaction
In addition to surveying the percentages of businesses using media types, researchers asked about satisfaction regarding specific marketing channels.
- Top satisfaction scores went to:
- Video marketing/advertising 80%
- Reputation management 78%
- Search advertising 75%
- Content marketing 74%
- Display advertising 74%
Be sure to review these satisfaction statistics as you discuss SMB online marketing with your key contacts.
What Formats Drive New Customers
For most businesses, the point of advertising is to score new customers. In that context, SMB online marketing continues to grow.
83% of SMBS point to customer referrals as the top source of new businesses. Organic/direct website traffic (51%) and digital marketing/online advertising (46%) also generate substantial business for SMBs.
SMB Advertising Outlook
Be aware that around 60% of SMBs will either decrease or hold steady on their advertising next year. While economic uncertainty is a factor, expensive advertising was also cited as a reason to hold back.
In addition, the only formats expected to experience an increase in ad spending by SMBs will be video marketing/advertising (53%) and search (47%). Meanwhile, 24% of SMBs will spend less on traditional media.
The growing financial pressure on SMBs is also apparent when considering their plans for next year. Over 30% of businesses that are not using social media marketing will start to do so next year. And 26% of SMBs that don’t use SEO will explore that option next year as well.
The Shift to Less Expensive Advertising
In both cases, it is likely they will try to build their campaigns internally as they use the “free” formats. The growth in these categories shows that SMB online marketing will emphasize effectiveness and lower costs.
As you prospect for new business in the coming year, keep in mind that some sectors will have stronger revenue growth than others. In our State of Media Sales survey, media sales managers expect political organizations, home improvement services and health care services to deliver the largest growth.
When pitching your services and product, you’ll need to emphasize value to capture spending by SMB accounts.
SMB Use of AI to Grow
SMBs have learned that AI tools can save them time and money. Around 60% of survey respondents are using it for marketing. The most popular uses of these tools include content creation, design and social media management.
And while AI saves them time, these tools also allow them to quickly generate ideas.
The Opportunity for Outside Partners
Going forward only 34% of surveyed SMBs plan to use outside help for their marketing needs. Analysts note a big shift from last year when 60% were using outside vendors.
However, these business owners need help. Around 50% don’t have a dedicated marketing employee. Nearly 30% are spending 10 or more hours a week on marketing. The marketing chores result less time being devoted to their sales effort or product enhancement.
If you are pitching your services to these businesses, here is what is most important to them.
- Proven results 80%
- Pricing 76%
- Reporting transparency 76%
As your plan your strategy for the new year, stay on top of SMB online marketing trends. Your clients need to know what’s working. You can help them understand their digital marketing position compared to their competition by running a Digital Audit on AdMall.
Image on Pexels by Anna Nekrashevich
