Small and medium sized business spend more on marketing, according to The Kelsey Group. The study reveals that such businesses that are less than 10 years old spend more on marketing than SMBs that are more than 10 years old.


Small and medium sized business spend more on marketing, according to The Kelsey Group. The study reveals that such businesses that are less than 10 years old spend more on marketing than SMBs that are more than 10 years old.

SMBs less than 10 years old allocated $6,246 of their annual operating budgets to advertising and promotion, on an average. Those in operation for 10-20 years allocated $4,198.

Neal Polachek, senior vice president of research and consulting at The Kelsey Group, said: “What the data confirms is that SMBs that are trying to grow their businesses recognize the need to spend more on advertising and promotion than established SMBs. For a long time, the more established SMBs likely received a disproportionate share of attention from media marketers. The data here suggests that younger businesses should be given an added dose of attention by all local advertising providers.” [Source]

The study also revealed that SMBs that are operating for less than 10 years use online media more than those that are older. 6% of new SMBs and 4% of old SMBs use local search in their marketing stratergy.

When questioned about their future plans for spending:

“¢ 12% of the SMBs in business for more than 10 years said they plan to increase their budget
“¢ 17% of the SMBs in business for less than 10 years said they plan to increase their budget

For more information on the survey, click here.

 

 

 

 

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