Tomorrow’s Media, Understood Today www.BorrellAssociates.com 2014 Outlook: Digital Marketing Services SMBs Learn the Cost of Managing Their ‘Own’ Media October 2014
What is Main Street Really Spending on Digital? And Who Are They Spending With?
Dec 01, 2014
Companies at the local level have begun spending vast amounts of money on the basic underlying services needed to support their digital marketing. Companies will spend over five times as much on digital marketing services than they will on digital advertising - costing them $501 billion this year. This report examines the results from our survey of more than 2,000 local advertisers and has uncovered some remarkable insights about what the new marketing environment has done to these so-called SMBs. In addition to what they spend on digital services, these smaller businesses spend an average of 27.9% of their ad budgets on digital media (including social media), and a further 11.3% specifically on mobile advertising. Three out of every five of the businesses surveyed use some form of digital marketing services. This 38-page report includes 30 charts and graphs, plus a 3 page appendix of open ended responses from local advertisers on their biggest challenge in creating and conducting advertising and marketing programs, and a deeper dive into digital services spending in two sample markets. It also provides attention to detail on social media, SMB web presence, projected spending in various categories as compared to larger business and the overall satisfaction by SMBs on the digital services they are purchasing. The executive summary is available for free, here: https://www.borrellassociates.com/industry-papers/papers/2014-digital-marketing-services-outlook-oct-14-detail
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Tomorrow’s Media, Understood Today
www.BorrellAssociates.com
2014 Outlook:Digital Marketi ng Services
SMBs Learn the Cost of Managing Their ‘Own’ Media
October 2014
2
About This Presentation
The following presentation is based on:1. A survey of 2,102 SMBs conducted in August & September 2014.2. Borrell’s database of marketing expenditures covering 3,000 U.S. counties, found at
www.adspending.com.
A full analysis of the results can be found in“2014 Digital Marketing Services Outlook”
on the Borrell website.
© 2014 Borrell
GREAT report!
04/09/2023© 2014 Borrell 3
Digital Advertising is BIG!More than $95 billion a year
Digital Promotions is BIGGER!More than $133 billion a year
Combined,
both are less than half of…..
© Borrell Inc., 2014. All rights reserved 4
Digital Marketing Services
Source: Borrell 2014
Sure, digital
advertising is cool and
sexy . . .
But the ‘dirty’
business of digital
services is 5x bigger.
$ in Billions
04/09/2023© Borrell Inc., 2013. All rights reserved 5
That $501 Billion Universe Has 5 Galaxies
This one’s the biggest.
5 DMS Spending Categories
© Borrell Inc., 2014. All rights reserved 6
What’s Included in Each
Source: Borrell 2014
$ in Billions
Biggest spending category.
Most-pitched service.
04/09/2023© 2014 Borrell. All rights reserved 7
Is Main Street Really Spending
That Much in Digital Services?
8
3 Out of 5 Said Yes
Source: Borrell SMB Survey, Aug.-Sept. 2014 © 2014 Borrell. All rights reserved
QUESTION: What types of digital services are you buying?
Not everybody!
© Borrell Inc., 2014. All rights reserved 9
Who Isn’t Buying: The S’s.The Sweet Spot: The M’s.
Source: Borrell, Dun & Bradstreet; 2014
Sour
Sweet!
On average, businesses with fewer than 10 employees spendless than $800 per year on digital services. Yes, that’s PER YEAR.
04/09/2023© 2014 Borrell. All rights reserved 10
So, local providers dominate the DMS scene, right?
WRONG!$3 out of $5 are captured by national providers
© Borrell Inc., 2014. All rights reserved 11
National Providers Dominate
Source: Borrell SMB Survey, Aug.-Sept. 2014
In every category, more SMBs said they bought from a non-local service provider.
© Borrell Inc., 2014. All rights reserved 12
Who Are These Non-Locals?
Source: Borrell SMB Survey, Aug.-Sept. 2014
We asked SMBs to name a company that provided exceptional service. While many named a provider, few names popped up more than once. Below are those that did.
It’s a REALLY fragmented
marketplace.
© Borrell Inc., 2014. All rights reserved 13
SMBs Are Getting Help, But ALot Are Still DDIYs*
Source: Borrell SMB Survey, Aug.-Sept. 2014
* Digital Do-It-Yourselfers
High likelihood for
growth.
04/09/2023© Borrell Inc., 2014. All rights reserved 14
Brace YourselfIt’s About to Get Scary
04/09/2023© Borrell Inc., 2014. All rights reserved 15
When We Asked SMBsTo Tell Us What They
Thought,
The Floodgates Opened
04/09/2023© Borrell Inc., 2014. All rights reserved 16
Sales Reps Are Bugging Them
“(I am) overwhelmed by salespeople creating confusion. Everyone has the
magic solution.”
17© Borrell Inc., 2014. All rights reserved Source: Borrell SMB Survey, Aug.-Sept. 2014
1 Pitch Per Day; Some Say Dozens
04/09/2023© Borrell Inc., 2014. All rights reserved 18
“Have found that I need less and less advertising. Our business is built on word-of-mouth referrals from past clients and
customers.”
Classic ‘Ads’ Are Less Attractive
Source: Comment from Borrell SMB Survey, Aug.-Sept. 2014
04/09/2023© Borrell Inc., 2014. All rights reserved 19
“My biggest challenges are keeping abreast of all the new trends in social media and the best ways to reach my
customer, and finding the time to manage it all.”
Change is Confusing Them
Source: Comment from Borrell SMB Survey, Aug.-Sept. 2014
04/09/2023© Borrell Inc., 2014. All rights reserved 20
“ROI seems to be minimal at best. Very few clients have contacted me because of any kind of advertising or marketing; it seems to be mostly word-of-mouth. “
And They’re Skeptical of ROI
Source: Comment from Borrell SMB Survey, Aug.-Sept. 2014
© Borrell Inc., 2014. All rights reserved 21
Which Is Why . . .
Source: Borrell SMB Survey, Aug.-Sept. 2014
They’re putting so much effort here.
QUESTION: Which of the following best provides you with new customers?
© Borrell Inc., 2014. All rights reserved 22
And Here’s How They Gauge All That Digital Success
Source: Borrell SMB Survey, Aug.-Sept. 2014
QUESTION: How do you measure the success of your social media programs?
04/09/202323© Borrell Inc., 2014. All rights reserved
Let’s Summarize
The Deer Have the Guns
They’re Pestered by Reps
They’re Confused by Choices
Not All Are Buying
Success = Referrals, Likes
Thus, A Good Strategy . . .
The Deer Have the Guns
They’re Pestered by Reps
They’re Confused
Not All Are Buying
Success = Referrals, Likes
Teach Them to Shoot
Win Their Trust
Educate Them
Target Accurately
Drive Those Results
Show them misfires
Do consultative sales
Hold local seminars
Use Borrell Data!*
Offer measurements
And The Tactics . . .
Teach Them to Shoot
Win Their Trust
Educate Them
Target Accurately
Drive Those Results
* This is not a sales pitch. It is sage advice. Check out www.adspending.com.
27
We Weren’t KiddingAbout the Data
© 2014 Borrell. All rights reserved
We have Digital Marketing Services spending reports for any U.S. Market.
04/09/2023 © Borrell Inc., 2014 All rights reserved 28
We Hope You Found
This Useful!Questions?
1-757-221-6641
Or Tweet to us @borrellassoc
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