50% Of Higher Spending Small Businesses Plan To Maintain Current Ad Spending In 2018, Finds BIA/Kelsey

Looks At SMB Spending

Half of higher spending small and medium-sized businesses (SMBs) plan to maintain their current ad spend in 2018, according to the new wave of BIA/KELSEY's Local Commerce Monitor (LCM) completed in the third quarter of 2017.

The SMBs surveyed report they intend to allocate 62.2% of their budget to digital media to promote their businesses, an increase of 6% from 2015. 

"For the first time in two years, advertisers we classify as 'plus spenders,' - those spending more than $25,000 each year on advertising - are not planning to increase their ad spend in 2018," said VP/Analytics & Insights CELINE MATTHIESSEN. "Instead, they are increasing their use of lower cost digital media to maintain spend."

The LCM survey reveals the marketing share of plus spenders is rapidly evolving to include less expensive advertising channels like digital, social and mobile that are capable of targeting customers. For 2018, sponsorship/giveaway and mobile channels are both projected to increase in usage while broadcast and cable will show the biggest declines.

"Over 85% of Plus Spender advertisers indicated they are already using some form of mobile advertising, and they intend to increase that usage next year by focusing on areas such as mobile search, mobile websites and mobile display," commented MATTHIESSEN.

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