Julia Faria
Research lead covering advertising and marketing
SME/SMB advertising and marketing in the U.S. - statistics & facts
Marketing can be particularly tricky for small and medium businesses (SMBs) or enterprises (SMEs). Those ventures must consider questions like "who?", "what?", and "when?" to engage in promotional activities. Eight out of 10 SMBs in the United States spend at least 1,000 U.S. dollars in advertising. Additionally, 75 percent of U.S. small businesses use at least two marketing channels to promote products and services. Increasing sales, driving leads, and building brand awareness are the main marketing goals cited by SMBs.
SMBs are embracing digital
According to a 2022 survey, eight out of 10 U.S. SMBs agreed that digital advertising is crucial for the success of their business. Not only has the adoption of digital tools proved essential for SMBs to develop their online presence, but it was also considered more effective than traditional formats regarding revenue generation and reaching new customers. Unsurprisingly, almost 70 percent of SMB owners or managers planned to increase their usage of online advertisements in the next two years. Facebook and other social networks, such as YouTube and Instagram, appeared as the most popular digital ad platforms used by SMBs. The enterprises also advertised in search engines like Google and Microsoft, as well as on digital retail media platforms like Amazon.Small businesses go social
Social media networks were the most popular channels for small businesses to promote their products and services. The platforms took nearly 30 percent of U.S. SMBs’ advertising budget in 2022. In comparison, around nine percent of the ad investments ended with television, while radio grabbed seven percent. Facebook and Instagram appeared as the most used platforms. However, small businesses also started expanding the usage of LinkedIn and Twitter to reach customers. When it comes to content formats, SMBs used videos, promotions and offers, and images to generate the highest social media engagement.AI can help SMBs to save time and money
SMBs have jumped onto the artificial intelligence bandwagon to improve their marketing strategies. As of 2023, one in four small businesses in the U.S. invested in AI or automation technology. Over 40 percent would like to start doing the same. SMBs used AI mainly for social media, content creation, and email campaigns – but also for ad targeting and analytics. The technology has saved time and money for the enterprises already adopting it. For instance, around 30 percent of SMBs reported saving more than 40 minutes per week in their marketing activities by using AI. Nearly 60 percent expected to save at least 1,000 dollars in the next 12 months as a result of adopting AI in their marketing strategies.Julia Faria
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Dec 18, 2023
Julia Faria
Research lead covering advertising and marketing
