According to a study by VerticalResponse Inc. majority of US small businesses plan to increase their use of email marketing (74%) and social media (68%), in 2010. However, more than half (54%) said they won’t invest in online banner ads and nearly one-fourth (24%) said to cut spending on search-engine marketing (SEM).
Email, in particular, continues to demonstrate significant value to small businesses. Only 4% of respondents do not plan to use it in 2010.
The channels that small businesses plan to use the least were TV and radio advertising. Nearly eight in 10 (80%) are not planning to use TV, and 73% will not use radio.
Other findings of study
- SEM, advertising, web/graphic design and high-speed internet were considered to be the most important tool for their businesses to succeed
- Nearly one-fourth of small businesses with 1-10 or 11-100 employees, won’t do SEM in 2010.
- Online banner advertising spend did not increase much over 2009. Only 4.5% of smaller businesses increased it by “a little” in 2009