SMBs in 2018 - Borrell Associates€¦ · SMBs in 2018 Current Trends & Forecasts in Local Business...

Tomorrow’s Media, Understood Today

www.BorrellAssociates.com

3/19/2018 © Borrell Inc., 2016. All rights reserved 0

SMBs in 2018

Current Trends & Forecastsin Local Business Marketing

Corey Elliott, VP of Research

PREDICTIONS

Who ARE these experts??

https://www.borrellassociates.com/surveys/2017-panel

• Members of our SMB Panel

• Local business owners

• Responsible for marketing

• Incentivized• Sharing of results• Gift cards

Monthly Surveys

© Borrell Inc., 2018. All rights reserved

Did Virtual Reality “Happen” in 2017?

Not really, but they’re honest…

In 2016, we asked....Will you participate in VR in 2017?

Average possibility = 19%8% were 75% sure3% were 100% sure

In 2017, we asked....Did you participate in VR in 2017?

5%

In 2018, we asked....Will you participate in VR in 2018?

1% were 100% sure5% = “probably”14% = “Maybe”79% = No


More focus on fewer social media sites in 2017?

Pretty much….

In 2016, we asked....Will you focus more intently on fewer social media sites?

71% = focus on 1 or 2

In 2017, we asked....Did you focus more intently on fewer social media sites?

Avg # used = 3

82% said it was true they focused more intently on fewer


So….which 3 social sites?Facebook, Instagram, Twitter

(with YouTube making a play) TOTAL PANEL

61% said they will increase spending





So….which 3 social sites?Facebook, Instagram, Twitter

(with YouTube making a play) TOTAL PANEL

MASTER MARKETERS


3/19/2018

Outlook for 2018Borrell Business Barometer

How would you characterize the current economic situation in the U.S. for sustaining a small business?

Poor, 10% Poor, 11%

Fair, 50%Fair, 35%

Good, 37%Good, 47%

Excellent, 2% Excellent, 6%

Feb 2017 Feb 2018


2018. Ad expenditures will be……..

UP!Looking back at 2017….

Most surprising thing re: marketing campaigns?Better than expected performance

Looking forward to 2018….

42% look to increase budgets more than 5%

Decrease5%

Same53%

Increase42%

SMB

Ad Budgets 2018 vs 2017


The Future of Social Media is….Undecided

Q. Do you think social media advertising

for your industry is a... n=173“Great way to reinforce traditional advertising messages and reach new audiences.” (Beverage Retailer)

“We don't find social media as a tool for Branding our business as much as we do for announcing events. So it is a very useful tool. But you need to have the consumer aware of who you are before we start hitting them on social media.” (Real Estate)

Smart Investment In Between Wasted Effort

49% 45%

6%


The Future of Social Media is….Undecided

Q. Do you think social media advertising

for your industry is a... n=173“Boosted posts with video are moving the needle. Great interaction translating into sales.” (Arts Organization)

“I participate, but am not sure how to measure return. I am certain I will get no new clients from social media.” (Graphic Design)

Smart Investment In Between Wasted Effort

49% 45%

6%


“Facebook will lose steam in 2018 as other platforms begin to allow more advertising.”

Who the hell knows…

Don't care9%

Less than 50% chance

41%

50% chance16%

Over 50%34%

Facebook’s biggest competitor?

Instagram

And…..

Snapchat


3/19/2018

"We want to see empirical evidence that our digital marketing spend is productive."

"Internet marketing is extremely expensive. I have tried it extensively and have not had good results. I am having better results from a local magazine with my listings advertised in it."

"The data showing digital is not as effective as promised. Frankly, our TV and Radio are doing well for us, but everything you read indicates you must put more on digital and I'm not sure that's correct now"

"Getting social media right. Skeptical about ROI of digital advertising. "

“Social media campaigns that do not turn negative."

There’s a storm a-brewin’…..


“There could be a resurgence of use of "traditional" marketing (advertising) in proven,

trusted media like radio and television as a foundation for a media mix that includes social and digital, especially since the cost of paying

to play on social media continues to rise.”

The longest prediction EVER…….


Non-Digital Coming Back?

Agree Disagree

49% 51%

“I agree. I get solicited for digital advertising all the time but the prices are out of control. I've tried it many times with no results.”

“Radio and television advertising costs would have to decrease significantly for this to happen. Social Media advertising is still very affordable especially for smaller businesses.”



Agree Disagree

49% 51%

“I think advertisers were so caught up in the ability to track results with digital that they let traditional media go and are now realizing that just because you can track it doesn't necessarily mean the numbers are better and that traditional media is still a viable way to reach some markets.”

“My company has tried radio advertising and we decided to stay away from it in the future as we cannot measure the success of it quite like other advertising avenues. Television is far too expensive for my company to even consider.”



Agree Disagree

49% 51%

“There should be a good mix of media is the key to a successful advertising plan. Relying on social media exclusively is short-sided and

frankly, not too smart for a marketing or advertising person.”


3/19/2018

Let’s remember where business comes from….


3/19/2018

We are mostly word of mouth - advertising doesn't really influence our numbers so we don't spend a lot of time or money in it..

The 'buying influence' is typically a personal recommendation so I have to influence positive current clients to talk up the schools.

Dude Ranch

Residential Construction, $5 million revenue

There isn't one medium that is the answer to all advertising challenges. . . Share the budget (with other media) and make it work. I guarantee I will be a

long term, spend-every-month advertiser.

Personal Services, $500k revenue


3/19/2018

The money an SMB spends to get someone to do something…

Advertising

•Cable

•Cinema

•Direct Mail

•Directories

•Newspaper

•OOH

•Other Print

•Radio

•TV

•Telemarketing

•Online

•Targeted Display

•ROS

•Email

•Paid Search

•Audio/Video

Non-Ad Marketing

•Ad Production

•Sales Management Tools

•Public Relations

•Online PR

•Research

•Promotions/Online promotions

•Coupons

•Discounts

•Samples

•Licenses

•Games

•Sponsorships

•POP

•Loyalty Programs

•Event Marketing

•Promo Products

Digital Services

•Web Presence

•Online Public Relations

•Online Marketing

•Online Ad Production

•Online Consulting & Research


$0.00

$50,000.00

$100,000.00

$150,000.00

$200,000.00

$250,000.00

$300,000.00

$350,000.00

2008 2013 2018

Advertising

3/19/2018

Advertising has increased in the past decade

Up 35%


$0.00

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

2008 2013 2018

Advertising Non-Ad Marketing

3/19/2018

Non-Ad Marketing more than doubled Up 121%

Up 35%


$0.00

$500,000.00

$1,000,000.00

$1,500,000.00

$2,000,000.00

$2,500,000.00

2008 2013 2018

Advertising Non-Ad Marketing Digital Services

3/19/2018

The Guideposts keep changing size

Up 147%

Up 35%

Up 121%


What will happen in 2018?

• SMBs are generally optimistic

• Silver bullet of digital is silver plated

• Video advertising poised to grow

• Above all, direct connection with customer is key


Tomorrow’s Media, Understood Today

www.BorrellAssociates.com

3/19/2018 27

SMBs in 2018

THANK YOUCorey Elliott, VP of Research


SMBs in 2018 - Borrell Associates€¦ · SMBs in 2018 Current Trends & Forecasts in Local Business...

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