2013 SMB Ad Spending Preview

LOCAL SMB A

DVERTISER –

2013 AD S

PENDING P

REVIEW

J AN

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2 0 1 3

© Borrell Associates, Inc. SMB Survey Wave 10, Q4 2012

About this data

The following slides offer a few highlights from Borrell’s Q4 2012 SMB survey. The full set of results are available in “2013 Local Advertising Outlook: Get Ready for the Rebound,” which can be downloaded at www.borrellassociates.com.

These slides are copyrighted by Borrell Associates Inc. They may be used without permission as long as they carry the following credit in legible type:

© 2013 Borrell Associates Inc; SMB Survey, Wave 10, Q4 2012

http://www.borrellassociates.com/


Methodology

Borrell has been polling local advertisers year-round with the same basic questions since 2010. We occasionally add or delete certain questions to keep the information current and relevant. We have conducted tens of thousands of surveys using this basic question set over the past three years.

The results described in Chapters 2 and 3 and in Appendix A in this report were extracted from 1,756 interviews conducted between Dec. 10, 2012, and Jan. 3, 2013.

We conduct our surveys principally through media partners who solicit responses from their advertising clients and prospective clients. Invitations are sent directly by the media participants on behalf of Borrell Associates. All interviews are conducted via online survey forms. Media partners participating in this round included local radio stations, newspapers, magazines, and internet pureplay companies in various U.S. regions. Respondents are offered the incentive of winning an iPad and receiving a summary of the results. We compile summaries and award an iPad quarterly.

Response rates for this round were 10% to 20%, with a 57% of respondents completing the full set of 46 questions. A sample of 1,756 respondents has a margin of error of 2.5% at the 95% confidence level.

More information and details available by contacting Greg Harmon at [email protected] or calling 1-757-221-6641.

mailto:[email protected]


Most SMBs plan to spend the same this year

Q 5. Compared with what you spent on advertising in 2012, will you spend more money, less money, or about the same in 2013? N = 1,686

20%

54%

16%

11%

Plan to spend more Plan to spend same Plan to spend less Don't know

2013 Ad-Spending Expectations


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Q 7 Thinking of your total advertising budget, as compared with 2012, do you think your spending will increase, stay the same, 6. or decrease in the following categories in 2013: Max N = 1,191

Online grows; newspapers & radio may stabilize

38%

25%

18%

11% 10%8%

7% 6% 6%4%

3%

38%

28%

33%

49%

35%

49%

28%

26% 26%

23%21%

3% 2%

6%

14%

8%

12%

5% 5% 4%2% 3%

Increase

Same

Decrease


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Q 6 What do you best estimate the PERCENTAGE of your ad spend will be in 2012 for each media listed? [Amounts should total to 100%.]Overall N = 1,166

SMBs favor newspapers and online media

64% 62%

54%

45%

36% 34%

29%

19%17%

13%

5% 3%

24%

Media Advertising Purchased

Source: © Borrell Associates, Inc. SMB Survey Wave 10, Q3-4 2012

Facebook is top choice for 2013 online spending

Q11. On which types of online advertising do you expect to spend money in 2013?N = 1,028

42%

5%

8%

9%

10%

13%

16%

25%

28%

No plans to spend on online advertising

Other online advertising and marketing

Video in online ads

Display ads with audio

Streaming video ads

Geo-, behavioral, or other targeted display

Sponsorships

Run-of-Site banner advertising

Place ads directly with Facebook


45%

58%

64%67%

79%

Percentage of SMBS with a Social Network presence

Summer 2010 Holidays 2010 Q1 2011 Q2 2011 Q4 2012

Q 13 Does your company maintain a Social Network site or page? 2012 N = 968

Steady growth in use of Social Networks


Yes 58%

No 43%

Don't know 10%

Pitched Mobile

Yes 24%No 79%

Don't know 3%

Conducted Mobile

Q 17. 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 = 554

Q. 20. Have you conducted any advertising or marketing campaigns using mobile in the past 12 months? N = 944

9

Mobile is being pitched, but only ¼ are buying


9%

28%30%

23%

12%

Very likely Somewhat likely

Not very likely

Not at all likely

Don’t know/Not

sure

Likely Use - If Not Used

Q 19. How likely is it that you will incorporate mobile elements in your advertising and marketing efforts to reach potential customers in 2013?

Used Mobile N = 24510

45%

38%

7% 6% 6%

Very likely Somewhat likely

Not very likely

Not at all likely

Don’t know/Not

sure

Likely Use - If Already Used

Q 22. How likely is it that you will incorporate mobile elements in your advertising and marketing efforts to reach potential customers in 2013?

Not Used Mobile N = 757

Once they use mobile, they might be hooked

We’d love to see you

at our conference!

Details at www.borrellassociates.com

Documents

2013 SMB Ad Spending Preview