Seattle WA
September 19, 2013
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Are we having fun yet?
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Dude, where’s my money?
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Where are we going so fast?
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Not fun, less money….
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Unrelenting Competitive Sales Pressure Continues
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 = 752
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 = 778
Attempts:
Mean : 18.2
Median :10
Pitches Taken:
Mean : 6.6
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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1. To begin, in how many different media outlets do you currently advertise? N = 843
2. Compared with what you spent on advertising in 2012, will you spend more money, less money, or about the same in 2013? N = 775
YOY Spending Expected To Grow Moderately
0%
20%
40%
60%
Spend more money
Spend the same amount
Spend less money
Don't know
Plans
0% 10% 20% 30% 40% 50%
Don't know/Not sure
15 or more
10-14
6-9
3-5
2
1
None
Ads Bought
Avg. Media Bought = 5.2
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 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
Among their own clients, Newspaper buys are still strong
0% 10% 20% 30% 40% 50% 60% 70% 80%
Other
Cinema (Ads in local movie theaters)
Telemarketing
Broadcast TV Stations
Cable TV Stations
Outdoor and Out of Home
Mobile
Printed Directories
Radio
Direct Mail
Other Local Print Pubs
Online/Digital
Local Newspapers
Media Bought
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 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
Yet the Newspaper share still falling
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Total Spending Ad/Marketing Spend Expected to Rise over 2012
$84,547 $89,279
$7,000 $9,000
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
2012 Total Ad and Marketing
Spend
2013 Total Ad and Marketing
SpendMean Median
Direct Advertisi
ng , 68.3%
"Non-Ad" Marketing
34%
Direct vs. Non-Ad
Direct Advertising "Non-Ad" Marketing
Gross Revenues $ 2,335,802
Total Combined Budgets $ 97,889
Net of Revs 4.19%
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%.]
37. What do you expect your total direct spend on advertising and marketing
efforts will have been in 2012 and will be in 2013?
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q7 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 = 170
Increase in Online continues most pronounced
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q8 In which of the following LOCAL AREA ONLINE media do you expect to advertise in 2013 through paid banner, sponsorships, or other display or listing advertising? [Select all that apply.] N = 240
Newspaper Web still strong, but local online #2
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 10 Which of the following ONLINE MARKETING do you expect to engage in 2013? [Select all that apply.] N = 161
Overall Online Marketing Strong
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 6 Please estimate what portion of your total ad spending next year will be spent on the media listed below. N = 253
Implied Media 2013 Spending Mean = $37,850 Median = $6,500
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 12 Thinking about your company's investments in ONLINE and MOBILE advertising and marketing, what percent of your total ONLINE and MOBILE ad and marketing spend do you expect will go to each type listed below in your spending for 2013? [Amounts should total 100%.] N = 253
Implied Media Spending (Detail)
Media Media Share of
Spend
Implied 2013
Spend
Implied 2013
Spend
Mean Median
Local Newspapers 28% $ 10,598 $ 1,820
Online/Digital 17% $ 6,435 $ 1,105
Other LocalPrint Pubs 11% $ 4,164 $ 715
Direct Mail 10% $ 3,785 $ 650
Radio 9% $ 3,407 $ 585
Printed Directories 6% $ 2,271 $ 390
Broadcast TV Stations 5% $ 1,893 $ 325
Mobile 4% $ 1,514 $ 260
Cable TV Stations 4% $ 1,514 $ 260
Outdoor and OOH 3% $ 1,136 $ 195
Cinema 0% $ - $ -
Telemarketing 0% $ - $ -
Other 4% $ 1,514 $ 260
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 36 Which of the following sources best provide you with new customers? That is, how do people most often hear about your services and products who have not shopped with you or visited your business before? [Select all that apply.] N = 169
SMBs love their Web because it delivers customers
8%4%
12%13%
16%20%
22%23%
24%25%
26%43%
45%46%
47%69%69%
75%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Other (please specify)Mobile campaigns
Industry organizationsOutdoor/Billboard
Online adsYellow Pages
TV adsDirect mail
Email marketingOther print media ads
Radio adsSocial media
Professional referralsPrint newspaper ads
EventsCompany website
Referrals from friends and familyReferrals from other customers
Customer Source
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 13 Does your company maintain a Social Network presence or page (such as Facebook, LinkedIn, Twitter, etc.)?N = 116
Social Networks reaching ubiquity
85%
15%
Social Network Page
Yes No Don't know
Mean N Fans: 1,001
Median N Fans : 475
Which of the following are a part of the key metrics that you use to
measure the success of your social marketing programs?
[Select all that apply.] N = 152
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 12 Thinking about your company's investments in ONLINE and MOBILE advertising and marketing, what percent of your total ONLINE and MOBILE ad and marketing spend do you expect will go to each type listed below in your spending for 2013? [Amounts should total 100%.] N = 188
Company Web garners greatest share of attention and funds
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 12 Thinking about your company's investments in ONLINE and MOBILE advertising and marketing, what percent of your total ONLINE and MOBILE ad and marketing spend do you expect will go to each type listed below in your spending for 2013? [Amounts should total 100%.] N = 121
Implied Top Spend of $6K on Company Web
Online/Digital 17% $ 6,435 $ 1,105
Mobile 4% $ 1,514 $ 260
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 12 Thinking about your company's investments in ONLINE and MOBILE advertising and marketing, what percent of your total ONLINE and MOBILE ad and marketing spend do you expect will go to each type listed below in your spending for 2013? [Amounts should total 100%.] N = 170
Implied Digital Spend (Detail)
Answer Options Spend Share Mean Spend Median Share Response Count
Company website 37% $ 2,381 $409 127
Social Media 13% $837 $144 90
Email 13% $ 837 $144 87
Search engine optimization (SEO) 6% $ 386 $ 66 50
Banner/Display ads - Run of Sites (ROS) 6% $ 386 $ 66 45
Paid search/Keywords (SEM) 4% $257 $ 44 33
Mobile (portion devoted to any type of
mobile marketing or advertising) 3% $193 $ 33 36
Banner/Display ads - Targeted Display 3% $193 $ 33 29
Sponsorships 3% $ 193 $33 29
Business Directory listings 2% $129 $ 22 21
Online classifieds 2% $ 129 $ 22 13
Online/Streaming Video 1% $ 64 $ 11 12
Other Online advertising and marketing 5% $ 322 $ 55 27
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 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 = 180
Mobile, Anyone?
61%
28%
11%
Pitched Mobile
Yes No Don't know
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 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 = 175 How satisfied have you been with your overall "Deal of the Day" experience? N = 43
Deals? Not so much.
Yes 21%
No, 77%
DK 2%
Deals
Yes No Don’t know
16%
30%
33%
19%
2%
0%
5%
10%
15%
20%
25%
30%
35%
Very satisfied Somewhat
satisfied
Not very
satisfied
Not at all
satisfied
Don't
know/No answer
Satisfaction
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 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 = 172
Digital & Mobile Presence MATTERS
53%
36%
7%3% 2%
0%
10%
20%
30%
40%
50%
60%
Very important Somewhat important
Not very important
Not at all important
Don't know/Does not
apply to us
Importance of Digital Visibility
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 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 = 174
Little Impact seen from mobile “Showrooming”
Yes, 83%
No, 17%
Physical Location
0%
15%
30%
45%
Very often Somewhat often Not very often Not at all often Does not apply Don't know
See Customers “Showrooming”
0%
15%
30%
45%
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 defined as the shopping process in which someone visits a store in person to
look at, research and/or consider purchasing a product and then either uses their phone while in
store or goes home to go online to evaluate different options, sources or prices. How often do
you see your customers "showrooming?"
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 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 = 175
As “Social Search” begins to emerge, more need to know what needs to be done to play
16%
9%
3%
13%
15%
17%
18%
19%
30%
44%
75%
0% 10% 20% 30% 40% 50% 60% 70% 80%
None of above
Other (please specify)
Tumblr
Bing
Foursquare
Yelp
Yahoo Local
GooglePlaces/Google+
Facebook or FacebookConnect
Social Sites Used
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 31 Does your company write and post content for Facebook, business listings, business reviews, advertorial (native) content or other placements?
N = 175
SMBs directly manage their digital and mobile presence, but challenges exist
73%
21%
7%
Direct Postings
Yes No Not applicable
Q 31 How easy or difficult are any of the following in terms of maintaining an accurate
and effective presence on the Web and in directories? N = 170
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 6 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: Max N = 170
Detail on Managing Digital Presence
0%
5%
10%
15%
20%
25%
30%
35%
Creating text to post Keeping up with Facebook
Monitoring comments about your business on
various forums
Monitoring placed listings
Keeping up with Twitter Monitoring "free" listing not submitted by your staff to an online
publisher
Buying keywords Maintaining a presence on mobile phones and
apps
Very easy Somewhat easy Neither easy nor difficult Somewhat difficult Very difficult
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 33 Does your business maintain a "current customer" database or list for use in marketing and sales? N = 172
Collecting data, but not using in relationship
Yes,
76%
No, 21%
Don't
know, 4%
Customer Database
Yes No Don't know
Yes, 21%
No, 78%
Don't know,
1%
Loyalty Programs
Yes No Don't know
Q 34 Does your store or business maintain a formal "loyalty rewards" or "frequent buyer" program? N = 172
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 35n Which of these digital and electronic programs or services will you use or are considering using in 2013? [Select one response for each item.] N = 123
“Social Search” definitely on SMBs radar
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 39 Which of the following advertising and marketing support services do you currently purchase or would like to have available from your media providers? [Select all that apply.] N = 116
Social Network Support Tops Digital Services Bought or Sought
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
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Q 40 How would you rate your overall expectations about local area economic conditions over the next few time periods ?N = 116
SMBs optimistic on economy, but good help is still hard to find
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Ad Spending In Your Market
Test Drive at www.adspending.com, or call 757-221-6641
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Questions?
Contact:
Greg Harmon
Senior Research Analyst
Borrell Associates, Inc
415-566-4348
Contact:
Jim Brown
Account Manager
Borrell Associates, Inc
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012
Background And Methods
• Respondents were solicited by email sent from local media to their current and past clients, as well as prospects who had contacted them about possible advertising opportunities.
• Lists were assembled by our local partners.
•Respondents are offered the incentive of participation
in a drawing to win an iPad, awarded every six months.
Further information and details available at www.borrellassociates.com
or by emailing [email protected].
Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012