SMBs to Use More TV Advertising
Like most enterprises, small and medium sized businesses (SMBs) want to spend their marketing budget where it will do the most good. There is no shortage of studies on how SMBs allocate their ad spending and most of these studies show a growing use of digital formats. But, at least one new report reveals that many SMBs believe TV is their most effective format.
According to a forthcoming Vocus, Edge Research study, the typical SMB spends most heavily on:
- Email 15%
- Events 14%
- Person to person 13%
- Print ads 11%
TV is way down the list with only 5% of the ad budget. However, drilling down by company size shows that larger SMBs spend 8% of the media budget on TV while smaller ones spend 2%.
This survey focused on 600+ decision makers who specialized in email so it’s not surprising that email captures the largest share of the budget. In addition, businesses included in this survey had annual revenues from $1 million to $50 million – about 200 were in the $1 million to $15 million segment.
Respondents were also asked which formats are most effective and the answers look like this:
- Person to person contact 62%
- TV ads 53%
- Events/trade shows 46%
- Radio 43%
- Out of home 42%
- SEO 42%
- Email 39%
- Direct mail 32%
- Print 31%
While SMBs will likely continue to put resources into the one-on-one sales effort, especially as a customer is closer to buying, they might want to reconsider TV and determine whether increasing the allocation to that format will generate more interest in their products and services.[Source: TV Rated Most Effective Advertising Channel by SMBs. Marketingcharts.com. 21 Feb. 2013. Web. 6 Mar. 2013]