smb survey: pestered by reps, not happy with deals, loving facebook, poised to buy mobile
TRANSCRIPT
Tomorrow’s Media, Understood Today
www.BorrellAssociates.com
Q2 /Q3 2013 Survey HighlightsSMB Marketing Patterns
December 2013
Background & Methodology
This survey is part of ongoing Borrell surveys to monitor changes in advertising patterns at the local level.
Respondents for this wave were solicited from current, past and prospective advertising clients of 14 local media companies
across a wide geographic region of the U.S. Local media companies sent invitations to participate; Borrell
collected and analyzed results. Surveys were conducted May 1 through Aug. 23, 2013. There were 903 respondents and 440 completions. Respondents were offered an incentive to participate (an
iPad, awarded by random drawing).
More information and details available at www.borrellassociates.com or by emailing [email protected].
SMBs are hopeful.
64% are “very” or “somewhat” optimistic about near-term (12 months) improvement
to the local economy.
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40. How would you rate your overall expectations about local area economic conditions over the next few time periods ? N = 477
Most SMBs optimistic about economy
17%
21%
27%
41%43%
39%
24%
19% 19%
14% 13%
9%
2% 2%3%
Next 6 months Next 12 months Next 2 years
Very optimistic Somewhat optimisticNeutral Somewhat pessimisticVery pessimistic
16%
16%
35%
18%
10%
7%
Don’t know
Very difficult
Somewhat difficult
Neither difficult nor easy
Somewhat easy
Very easy
Finding Qualifed Employees
SMBs Are Spending More.
Marketing budgets are up 10.7%.
Total Marketing Expenditures on the Rise
$79,713
$88,277
$6,000 $9,000
2012 Total Ad and Marketing Spend 2013 Total Ad and Marketing Spend
Mean Median
Gross Revenues $ 2,283,300Total Combined Budgets $ 97,100
Net of Revs 4.25%
38. Not all advertising and marketing money is spent on ads alone; what percentage of your advertising and
marketing budgets is spent on advertising versus "non-advertising" expenses? [Total should be 100%.] N=399
37. What do you expect your total direct spend on advertising and marketing efforts will have been in 2012 and will be in 2013 N=351
+ 10.7%
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1. To begin, in how many different media outlets do you currently advertise? N = 9035. Compared with what you spent on advertising in 2012, will you spend more money, less money, or about the same in 2013? N = 827
Moderate Growth for YOY Spending
27%
47%
19%
8%
Spend more money
Spend the same amount
Spend less money Don't know
Plans
1%
7%
6%
18%
39%
14%
8%
8%
Don't know/Not sure
15 or more
10-14
6-9
3-5
2
1
None
Ads Bought
Avg. Media Bought = 5.0
SMBs are Pestered.
On average, SMBs get 5 sales calls per week and listen to only 1 of them.
Sales Reps Call Every Day
3. Many different media work to earn your business as an advertiser. In an average month, how many total attempts are made to speak with or reach you about any advertising opportunity? N = 804
4. In an average month, how many advertising sales people do you speak to, in person or on the phone, among these incoming efforts? N = 830
Attempts:Mean : 18.6
Median :8
Pitches Taken:Mean : 6.5
0%
10%
20%
30%
40%
50%
60%
0 1-4 5-9 10-14 15-19 20-24 25-29 30-49 50 or more
Don't know/Not
sure
Contact Attempts Pitches Taken
SMBs Favor Newspapers.
Newspapers get 22% of their ad budgets,holding the largest share.
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6. Please estimate what portion of your total ad spending next year will be spent on the media listed below. Estimate the PERCENTAGE each will get in 2013. [Amounts should total to 100%.] N = 657
Share of Ad Budgets: Digital is No. 2(among this sample)
22%
19%
12%
9%
7%8%
5%3% 3%
3%
1% 1%
8%
NOTE: Borrell’s spending data for the entire U.S. indicatesthat digital ad spending now comprises 25% of local ad budgets, newspapers 19%, radio 12%, and local TV 12%.The difference in the chart below is likely due to the fact thatresponses were from highly localized, smaller businesses.
SMBs ‘Liking’ Digital More.
42% of them pegged digital media for more spending.
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7. Thinking of your total advertising budget, as compared with 2012, do you think your spending will increase, stay the same, or decrease in the following categories in 2013: [Choose one response for each item listed below.] N = 689
Online Spending is an Energizer Bunnyit keeps going and going and…
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Online/Digital Mobile Direct Mail Radio Local Newspapers
Other Local Print Pub
Outdoor and OOH
Broadcast TV Stations
Cable TV Stations
Print Directories
Cinema Telemarketing Other
Increase Stay the same Decrease
SMBs Give Facebooka Big Thumb’s Up.
70% use FB, compared with 64% two years ago.
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29. On which, if any, of the following websites does your business or company have a listing that your business or company wrote and placed? N = 509
20%
4%
3%
10%
11%
15%
20%
19%
33%
42%
70%
None of above
Other (please specify)
Tumblr
Bing
Foursquare
Yelp
Yahoo Local
GooglePlaces/Google+
Facebook or FacebookConnect
Social Sites Used
Facebook is Top Dog; Google+ in the Mix
SMBs Diss Deals.
77% aren’t participating; only halfwho do are satisfied.
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22. Have you participated in a "Deal of the Day" or similar program where consumers purchase a certificate or coupon at a discount for your business? N = 514How satisfied have you been with your overall "Deal of the Day" experience? N = 120
Deals Get Mixed Results
No 77%
Yes 21%
Don’t Know
2%
Deals
16%
33% 32%
14%
6%
Very satisfied Somewhat satisfied
Not very satisfied
Not at all satisfied
Don't know/No answer
Satisfaction
SMBs Are Poised to Embrace Mobile.
85% say mobile presence is important,yet only 19% engage in mobile marketing.
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32. How important is it to your company to have "high visibility" on web and mobile platforms so customers and prospects can easily find your website and your physical location? N = 308
Mobile is Becoming the New Black
51%
34%
8%5%
3%
Very important Somewhat important Not very important Not at all important Don't know/Does not apply to us
Importance of Digital Visibility
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16. Has your company been pitched by any vendors to conduct mobile-based advertising or marketing campaigns or campaigns with mobile elements in the past 12 months? N = 525
Demand for Mobile Marketing is Pent Up
Yes57%
No33%
Don't know 10%
Pitched Mobile
17%
30%27%
18%
8%
Very likely Somewhat likely
Not very likely Not at all likely
Don’t know/Not
sure
Likelihood Use Mobile Next 12
Yes 19%
No78%
Don't know
4%
Used Mobile
SMBs: ‘Showrooming’ is No Big Whoop.
9% say it hurts business; 24% say it helps.
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26. Does your business maintain a brick and mortar location from which you sell physical goods or provide services
directly to customers or other businesses? N = 511
Impact From “Showrooming”
Yes 79%
No 22%
Physical Location
15%11%
21%
10%
40%
4%
Very often Somewhat often
Not very often Not at all often
Does not apply
Don't know
See Customers “Showrooming”
24%
9%17%
42%
8%
Generally helps business and
sales
Generally hurts business and
sales
Little or no impact positive
or negative
Does not apply to our business
Don't know
Impact of “Showrooming”
“Showrooming” is the process in which a customer uses a Smartphone while in a store to evaluate and compare product pricing or purchase options.
27. How often do you see your customers "showrooming? N = 40328. Is it your experience that showrooming helps or hurts your business and sales? N = 402
04/18/2023© Borrell Inc., 2013. All rights reserved 23
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