vcita's New Survey of SMB Owners Highlights Marketing Agency Churn Crisis, Client Expectations, and AI Opportunity

ST. PETERSBURG, Fla., July 15, 2025 /PRNewswire/ -- A new survey-based report of small and medium-sized business (SMB) owners reveals troubling churn rates, but also untapped opportunities.

vcita's 2025 SMB Marketing Report, based on an April 2025 survey of 500 US-based SMB (including industries such as home services, healthcare, beauty, and business services), finds that while  52% of SMBs are still outsourcing their marketing and spending up $3K monthly, many are quick to drop their agencies if they don't see fast results.

The study also sheds light on which marketing services are most prone to client turnover and how rising interest in AI tools could be a game-changer for agencies.

Churn crisis: limited time to prove ROI

According to the report, 40% of SMBs who outsource their marketing end up discontinuing or switching their marketing agency. More than half (56%) of churn occurs within just 6 to 12 months of starting an agency engagement, leaving agencies only a few months to demonstrate clear value to new SMB clients. When asked about the reasons for leaving, 60% of SMBs pointed to the lack of return on investment. In today's climate, SMBs will not stick around long if they aren't seeing that the dollars spent on marketing translate into tangible business results. Agencies that struggle to deliver these results are at risk of losing clients faster than ever.

The survey identifies social media management, email marketing, and paid search advertising as commonly outsourced marketing services for SMBs. However, it finds that these same three services are also at the highest risk of being canceled in the past year.

What SMBs want: solve these challenges first

The survey reveals the top marketing challenges driving SMBs to hire agencies in the first place. At the top of the list: converting leads into paying customers, with 19.2% of SMBs naming this as their biggest hurdle. Close behind were generating new leads (16%) and building brand awareness (11.6%). These findings make it clear that SMBs don't just want flashy campaigns. They're looking for tangible growth support. Agencies that can help small businesses move prospects down the funnel, from discovery to conversion, will be best positioned to earn trust and retain clients.

 Opportunity in AI: high demand meets limited access

Amid these challenges, the report points to a promising path, leveraging the tech industry's most talked-about innovation: artificial intelligence. Many small businesses still feel they aren't fully benefiting from AI's potential. Among the SMBs whose agencies do not yet offer AI capabilities, a majority said they are interested in leveraging AI tools to drive better marketing outcomes. In particular, SMB owners are most interested in using AI to create marketing content, automatically respond to client inquiries, and generate customized estimates. These are practical, time-saving applications that can help move leads down the funnel and greatly enhance an agency's value proposition. The survey suggests a significant opportunity for agencies that move early to integrate easy-to-use AI solutions into their service packages.

In summary, the 2025 SMB Marketing Report paints a clear picture: agencies must prove value fast, or risk rapid churn. SMB clients are willing to invest in marketing, but they expect to see measurable results and ROI in short order. The upside is that SMBs aren't simply cutting marketing spend, they are looking for partners who can deliver across the entire sales funnel, from lead generation to deals closed. Agencies that act quickly to demonstrate value, align their services with SMBs' core business goals, and embrace AI-driven innovation will position themselves as fit for the future: remaining relevant, resilient, and competitive

More information:

• Blog post: What SMBs Really Want from Their Marketing Agencies
• Full report: Download the report here

About vcita

vcita is a technology company committed to helping small and medium-sized businesses thrive in today's digital world. The company provides AI-driven tools that empower SMBs to manage, market, and grow their businesses more efficiently.

vcita's technology is also available to enterprise organizations that serve the SMB market. InTandem by vcita is a customizable, white-label platform designed for SMB service providers such as agencies, publishers, telecom companies, and banks. It enables partners to deliver all the essential tools their SMB clients need under their own brand. With InTandem, partners can unlock new revenue streams, reduce churn, and expand their value proposition with AI.

For more information, visit intandem.vcita.com or follow us on LinkedIn.

Press contacts

Rachel Nulman-Schapiro
VP Product Marketing
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Gilad David Maayan
Agile Press Relations
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SOURCE vcita