Nearly all small businesses (91 percent) plan to invest more in advertising in 2019, according to a new survey from business news and how-to website The Manifest.
Annually, more than half of small businesses (57 percent) spend less than $50,000 on advertising, the survey found. Increased spending on advertising will help small businesses spread brand awareness and stand out among their competition.
“It really is critical to advertise and get your name out there because otherwise, you get lost,” said Tim Smith, director of communications and media planning at advertising agency IPNY, in a news release.
Millennial business owners spend more on advertising
Millennials value advertising more than older business owners. About 61 percent of millennial business owners spend more than $50,000 on advertising annually, while 52 percent of baby boomer business owners spend less than $10,000.
Millennials grew up with both traditional and digital advertising, and this personal experience makes them more willing to spend more on advertising.
“It’s the world [millennials] have grown up in, and they’ve seen other businesses be successful that way,” said Josh Ryther, senior partner at marketing strategy agency Deksia, in the release.
Small businesses will spend more on digital advertising
Small businesses will increase spending on a variety of advertising channels, but the most plan to spend more on social media advertising (56 percent) and other online advertising such as Google search, banner, and retargeted ads (41 percent).
Small businesses are focusing on digital advertising because it’s an easy way to reach consumers where they spend time—online.
“Digital advertising reflects the way people shop today, which is online, and offers targeting opportunities that weren’t possible before,” said Harry Chapin, CEO and founder of brand-building company Forge Worldwide, in the release.
Digital advertising allows businesses to target people based on specific demographics. This ensures their advertising budget doesn’t go to waste reaching people who are unlikely to convert.
“We’ve tried bus benches, billboards, print, and Yellow Pages, but nothing comes close to the ROI we are able to extract from online advertising,” said Sean Pour, marketing manager of SellMax, a company that buys people’s used cars.
Small businesses advertise mainly to increase sales and revenue
Although it costs money to advertise, a successful advertising strategy helps small businesses make money in the long run.
About one-third of small businesses (32 percent) say their main goal for advertising is to increase sales and revenue.
“The goal of advertising is to simply create brand recognition for small businesses in order to increase brand engagement and overall sales,” said Les Kollegian, CEO of brand experience agency Jacob Tyler, in the release.
Overall, the survey shows that advertising is a beneficial investment for most small businesses and that businesses will continue to allocate time, money, and resources toward advertising.
The Manifest’s 2019 Small Business Advertising Survey included 529 small business owners and managers across the U.S.