Higher-Spending SMB Advertisers Use Diverse Media Mix, Employing More Than Six Different Media on Average

CHANTILLY, Va., Aug. 24 /PRNewswire/ -- Higher-spending small and medium-sized business advertisers use 6.5 different media on average in their promotional mix, compared with 3.1 different media used by the broader SMB advertiser population, according to findings from the first wave of BIA/Kelsey's LCM: SMB Plus Spenders study. This survey is an extension of BIA/Kelsey's ongoing Local Commerce Monitor study conducted annually with research partner ConStat. The LCM: SMB Plus Spenders survey addresses a higher spending bracket of SMBs — those spending at least $25,000 annually on media advertising and promotion. This is a considerably higher spending level than the core LCM population, which spends on average $2,000 to $3,000 annually on advertising.

"We launched this survey in response to the numerous inquiries from key players in the local, social and geo media space, who are seeking to better understand the behaviors and needs of higher-spending SMBs," said Neal Polachek, president, BIA/Kelsey.

Findings from the LCM: SMB Plus Spenders survey indicate these higher-spending SMBs:

• Have Web sites: A full 90 percent of SMB Plus Spenders have a Web site, versus 62 percent of core Local Commerce Monitor SMBs.
• Use more types of online media, and spend more for online advertising: In the past 12 months, Plus Spenders spent 26 percent of their total ad budget on online media, versus 21.8 percent for core LCM SMBs, a difference of 4.2 points.
• Spend an appreciable amount of their total budget on broadcast media: 16.1 percent of their budget is allocated to broadcast media compared with 1.3 percent for all SMBs.
• Focus on media performance in making media buying decisions: 40 percent rated "demonstration of ROI" as the first or second most important service that a vendor of online advertising can provide.

"SMB Plus Spenders are more performance-oriented in making their media purchase decisions and do a considerable amount of lead tracking," said Steve Marshall, BIA/Kelsey research director. "This group of SMBs, with its digital media savvy and use of more media categories, represents the sweet spot for many companies developing and delivering local advertising solutions."  

About Local Commerce Monitor and LCM: SMB Plus Spenders

Local Commerce Monitor (LCM) is BIA/Kelsey's annual tracking survey of small and medium-sized businesses, conducted with research partner ConStat since 1999. The survey measures where SMBs are spending their advertising and promotional budgets and how their media usage and spending habits are evolving. Local Commerce Monitor draws its sample of business respondents from a mix of nationally scoped MSAs, which include first- and second-tier markets.

An extension of BIA/Kelsey's Local Commerce Monitor, LCM: SMB Plus Spenders surveys a higher-spending bracket of SMBs -- those spending a minimum of $25,000 annually on media advertising and promotion.

Methodology for LCM: SMB Plus Spenders

The first wave of the LCM: SMB Plus Spenders survey was conducted in May 2010 with a sample size of 152. To participate in the LCM: SMB Plus Spenders survey, SMBs had to be spending at least $25,000 annually on media advertising and promotion. The survey was performed online using pre-existing, seasoned panels. The sample was nationwide, balanced between first- and second-tier markets and by key demographics. To facilitate direct comparisons to the broader Local Commerce Monitor SMB population, the LCM: SMB Plus Spenders Wave I questionnaire was nearly identical to the one used in the most recent wave of the main Local Commerce Monitor study.

About BIA/Kelsey

BIA/Kelsey advises companies in the local media space through consulting and valuation services, research, Continuous Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey's annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at www.bia.com and www.kelseygroup.com. The company's blogs are located at http://blog.bia.com/bia/ and http://blog.kelseygroup.com/, and it can be found on Twitter through http://twitter.com/BIAKelsey.

SOURCE BIA/Kelsey