When it comes to digital marketing, some small and medium-sized businesses (SMBs) are clearly ahead of the game, spending strategically and reaping the rewards. A recent survey by BrightLocal gives us the lowdown on where these SMBs are putting their dollars and which sectors are seeing the best returns on their investments.
The Spending Landscape
Out of 736 SMBs surveyed, it’s clear that certain industries are pouring more into their marketing budgets than others. The standout sectors? Real Estate, Insurance, and Medical SMBs lead the pack in terms of overall marketing spend. Why? These industries often contend with fierce competition, and as the saying goes, “You have to spend money to make money.” As one respondent aptly noted, “In real estate, it’s not just about having a listing; it’s about being the listing people see first.”
On the flip side, you have sectors like Tradesmen, Web Design, and Pet Services, which are playing it a bit more conservatively. With many SMBs spending under $500 a month on marketing, there’s clearly a range of investment levels.
Online vs. Offline Spending
Digging deeper, the survey reveals that Web Design (70%), Marketing (57%), and Real Estate (52%) allocate a larger portion of their budgets to online channels. This is where the game is changing. In an era where customers are increasingly online, having a robust digital presence can mean the difference between success and obscurity. As one marketer pointed out, “If you’re not online, do you even exist?”
Meanwhile, sectors like Retail and Interior Design are lagging behind, with only 25% of their budgets spent online. This highlights a potential growth area. If retailers want to compete with e-commerce giants, they must step up their online game.
Future Spending Trends
Looking ahead, Insurance, Marketing, and Retail SMBs are gearing up to increase their internet marketing spend. This aligns with broader trends: 37% of all surveyed SMBs plan to up their digital marketing budgets in the coming year. However, not all sectors are on the same page; nearly half of the tradesmen surveyed indicated they wouldn’t increase their online marketing budgets.
Why the hesitance? It often comes down to uncertainty. Many smaller SMBs simply aren’t seeing the return on investment they need to justify more spending. As one trade business owner lamented, “It’s hard to know if you’re throwing money down a black hole.”
The Effectiveness of Online Marketing
Here’s the kicker: 93% of Health & Medical and 83% of Real Estate SMBs find internet marketing to be either "very effective" or "effective." This correlation between spending and perceived effectiveness is key. Businesses that invest in digital marketing tend to see it as a critical avenue for attracting new leads. As one healthcare provider said, “If we’re not online, we might as well close our doors.”
It’s essential to recognize that while some sectors might still rely on traditional marketing methods, the data overwhelmingly supports the idea that online channels deliver results. When asked about the effectiveness of various marketing strategies, 28% of SMBs cited word of mouth, but online channels like SEO and social media are gaining ground quickly.
Online Marketing Channels in Focus
Among the surveyed SMBs, SEO emerged as the most effective online channel across the board, with 59% of Educational SMBs highlighting its importance. The rise of email marketing in the Insurance sector—rated effective by 33% of respondents—illustrates how traditional strategies are evolving in the digital landscape.
Conclusion
In a digital world where visibility is everything, GMB Fox ensures your business isn’t just online—it’s the first choice customers make. Let us handle the complexities of digital marketing, so you can focus on what truly matters: growing your business.
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