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May 4, 2006
Newer Small and Medium-Sized
Businesses Spend More on Marketing Than Those That Are Established,
According to The Kelsey Group
While younger SMBs are embracing
new media more than older ones, only 6 percent currently use local
paid search in their marketing mix.
Princeton, NJ (May 4, 2006) --
Small and medium-sized businesses that have been in operation for
10 years or less spend more on marketing (traditional and new media)
than SMBs in business for more than 10 years, according to The Kelsey
Group, the leading provider of research, data and strategic analysis
on directories, small-business advertising and online local media.
During a presentation at the recent Yellow Pages
Association Annual Conference in Orlando, Florida, Kelsey Group
analysts offered findings and analysis from the firm’s Local
Commerce MonitorSM, an ongoing study of media usage by SMB advertisers,
conducted with research partner ConStat.
Of the SMBs surveyed, those in business less than
10 years allocate an average of $6,246 of their annual operating
budgets to advertising and promotion, while those in operation 10
to 20 years spend $4,198.
“What the data confirms is that SMBs that
are trying to grow their businesses recognize the need to spend
more on advertising and promotion than established SMBs,”
said Neal Polachek, senior vice president, research and consulting,
The Kelsey Group. “For a long time, the more established SMBs
likely received a disproportionate share of attention from media
marketers. The data here suggests that younger businesses should
be given an added dose of attention by all local advertising providers.”
The survey’s findings also indicate that the
under-10 SMBs are using online media much more aggressively than
older businesses. However, both established and new SMBs have yet
to embrace local paid search advertising. Only 6 percent of newer
SMBs and 4 percent of older ones currently use local search in their
marketing mix, the survey found.
When asked about plans for future spending, under-10
SMBs indicated they are more inclined to increase their budget allocations
for advertising and promotion in the next one to two years compared
with SMBs over 10:
- SMBs in business over 10 years: 12 percent plan to increase
spending
- SMBs in business less than 10 years: 17 percent plan to increase
spending
The Kelsey Group’s Local Commerce MonitorSM
draws its sample of business respondents from a mix of nationally
scoped MSAs, including both first- and second-tier markets. All
data are collected by telephone survey. Only the individual directly
or ultimately responsible for making advertising decisions in local
media is interviewed.
About The Kelsey Group
The Kelsey Group is the leading provider of research, data and strategic
analysis on directories, small-business advertising and online local
media. Founded in 1986, the company has built a reputation as the
premier analyst firm covering the directory publishing community
and the emerging local search marketplace, providing advisory services
(The Kelsey Report® and Interactive Local Media), publishing
(Global Yellow Pages™ and Local Media Journal™), consulting
(over 300 individual assignments) and conferences (more than 60
events).
For more information contact:
Eileen Pacheco
(781) 556-1026
email |
