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Small and medium-sized businesses will continue the recent trend of shifting their marketing budgets to digital advertising, performance-based platforms and customer retention business solutions over the next five years, according to a new U.S. SMB Spending Forecast by BIA/Kelsey. This trend creates an increasingly large market opportunity for businesses serving SMBs and developing SMB tools.
By 2015 SMBs will allocate 30 percent of their marketing budgets to traditional advertising (down from 52 percent in 2010), with the remaining 70 percent going to digital/online media (mobile, social, online directories, online display, digital outdoor), performance-based commerce (pay-per-click, deals, couponing) and customer retention business solutions (email, reputation and presence management, websites, social marketing, calendaring/appointment-setting).
"With the advent of daily deals to drive customer acquisition, SMBs are now increasingly focused on leveraging technological solutions to engage, grow and retain a higher percentage of their customers," said Neal Polachek, president, BIA/Kelsey. "As this trend accelerates, these SMBs will turn to outside providers -- media companies as well as pure-play technology providers -- to harness simple tools, which will enable them to maximize the long-term value of each new customer they acquire."
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