The amount of spending for online marketing has increased across the nation, however most small businesses have failed to leverage the targeted opportunities that are offered by localized advertisements online.
The traditional advertising channels, including television, periodicals and billboards remain the most used mediums for paid advertising when it comes to small businesses. However, as customers continue to move to online, there are more and more businesses that make the move as well. Those who have not, may find themselves left in the dust, and very soon.
A recent study that was conducted by the Boston Consulting Group revealed the following about business advertising dollars:
- Only 15 percent of the total advertising dollars spent by businesses are on a national online marketing campaign;
- Approximately 14 percent of the total advertising dollars are actually spent toward the localized online marketing campaigns.
The fact is, however, that small businesses seem to be lagging behind these numbers and online marketing efforts with only three percent of total small business advertising dollars being used to online marketing campaigns. What does this mean? These numbers mean that small businesses across the nation spend about five times less on their online advertising efforts than the mid-sized and bigger companies do on both a local and national level.
For many, these numbers will come as a surprise. Especially considering that most small businesses advertise and promote their product or services through social media, their websites and email marketing campaigns. In fact, this is where the majority of small business digital marketing dollars actually go. However, when it does come to spending big money on actual advertising efforts, small businesses are almost completely turning to channels that are offline.
When this is compared to the percentage of online advertising dollars that are spent on localized advertisements online, which is 14 percent, this is even more troublesome. What this means is that companies that are larger are spending a substantial amount more that the small businesses per capita on the ads that are targeted to particular communities, as well as local customers who are essential for the success of the small, mom and pop businesses.
If you own a small business, it is essential that you embrace the power of digital online marketing and invest your marketing dollars in this extremely lucrative channel. Studies have shown that more and more people are making shopping decisions on their smart devices, which means that if you do not have a website, as well as a mobile friendly website, your competition is likely to get your business. You have to make efforts to be where your audience and customers are. This includes online as well as on social media. However, you also have to make an effort to provide them with the content and value that is necessary to turn a lead into a paying customer.
While all of this is true, it is not an impacting factor if you are not even working to create an online advertising campaign.