Higher-Spending SMB Advertisers Use Diverse Media Mix, Employing
More Than Six Different Media on Average
BIA/Kelsey’s New ‘LCM: SMB Plus Spenders’ survey
tracks SMBs spending $25,000 or more annually on media advertising
and promotion
CHANTILLY, Va. (Aug. 24, 2010) - Higher-spending small and medium-sized
business advertisers use 6.5 different media on average in their promotional
mix, compared with 3.1 different media used by the broader SMB advertiser
population, according to findings from the first wave of BIA/Kelsey’s
LCM: SMB Plus Spenders study. This survey is an extension of BIA/Kelsey’s
ongoing Local Commerce Monitor study conducted annually with research
partner ConStat. The LCM: SMB Plus Spenders survey addresses a higher
spending bracket of SMBs — those spending at least $25,000 annually
on media advertising and promotion. This is a considerably higher spending
level than the core LCM population, which spends on average $2,000
to $3,000 annually on advertising.
“We launched this survey
in response to the numerous inquiries from key players in the local,
social and geo media space, who are seeking to better understand the
behaviors and needs of higher-spending SMBs,” said Neal Polachek,
president, BIA/Kelsey.
Findings from the LCM: SMB Plus Spenders survey
indicate these higher-spending SMBs:
Have Web sites: A full 90 percent of SMB Plus Spenders have
a Web site, versus 62 percent of core Local
Commerce Monitor SMBs.
Use more types of
online media, and spend more for online advertising:
In the past 12 months, Plus Spenders spent
26 percent of their total ad budget on online
media, versus 21.8 percent for core LCM SMBs,
a difference of 4.2 points.
Spend an appreciable
amount of their total budget on broadcast
media: 16.1 percent of their budget is allocated
to broadcast media compared with 1.3 percent
for all SMBs.
Focus on media performance in making media buying decisions:
40 percent rated “demonstration
of ROI” as the first or second most important service that
a vendor of online advertising can provide.
“SMB Plus Spenders are more performance-oriented in making their
media purchase decisions and do a considerable amount of lead tracking,” said
Steve Marshall, BIA/Kelsey research director. “This group of
SMBs, with its digital media savvy and use of more media categories,
represents the sweet spot for many companies developing and delivering
local advertising solutions.”
About Local Commerce Monitor and LCM: SMB Plus Spenders
Local Commerce Monitor (LCM) is BIA/Kelsey’s annual tracking
survey of small and medium-sized businesses, conducted with research
partner ConStat since 1999. The survey measures where SMBs are spending
their advertising and promotional budgets and how their media usage
and spending habits are evolving. Local Commerce Monitor draws its
sample of business respondents from a mix of nationally scoped MSAs,
which include first- and second-tier markets.
An extension of BIA/Kelsey’s
Local Commerce Monitor, LCM: SMB Plus Spenders surveys a higher-spending
bracket of SMBs — those spending a minimum of $25,000 annually
on media advertising and promotion.
Methodology for LCM: SMB Plus Spenders
The first wave of the LCM: SMB Plus Spenders
survey was conducted in May 2010 with a sample
size of 152. To participate in the LCM: SMB
Plus Spenders survey, SMBs had to be spending
at least $25,000 annually on media advertising
and promotion. The survey was performed online
using pre-existing, seasoned panels. The sample
was nationwide, balanced between first- and
second-tier markets and by key demographics.
To facilitate direct comparisons to the broader
Local Commerce Monitor SMB population, the
LCM: SMB Plus Spenders Wave I questionnaire
was nearly identical to the one used in the
most recent wave of the main Local Commerce
Monitor study.
About BIA/Kelsey
BIA/Kelsey advises companies in the local media space through consulting and valuation services, research, Continuous Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey's annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at www.bia.com and www.kelseygroup.com. The company's blogs are located at http://blog.bia.com/bia/ and http://blog.kelseygroup.com/, and it can be found on Twitter through http://twitter.com/BIAKelsey.
