Major Trends For Small Business Marketing In 2010

Small business owners are getting ready to take Internet marketing to the next level as they see the economy starting to turn.

According to an Ad-ology Research study, small business owners are planning to engage customers in new ways in 2010. Armed with web 2.0 and social media marketing applications, they are looking to find ways to break through the clutter of the marketplace and generate leads and sales.

In this study, 28% of small business respondents say they will spend at least the same or more on online video, an increase of 75% over last year’s plan. Social media wins big with 25% saying they will commit more resources to social media; and 21% say the same for mobile advertising.

Outlook Improving

Well over half of small business owners (57%) say sales in 2009 were equal to or higher than sales in 2008, down from 60% who said the same last year. Looking ahead to 2010, 86% expect sales to be equal to or higher than 2009 figures, up from 83% last year.

More important, concerns about the economy have eased since last year: 22% say they are fearful about the economy, compared with 25% last year; 48% say they are concerned about the economy, compared with 58% last year; 17% say they are “cautiously optimistic.”

Internet Marketing

Small businesses have lot’s of room to grow in their Internet marketing strategies and use. The good news is they see light at the end of the recession tunnel and are looking to grow their businesses. Online marketing is seen as a key new opporutnity.

Nearly one-half of small businesses (46%) say they do not currently have an active company website. Of those with active sites, the primary functions are to inform customers about products/services, provide general information, and offer special promotions. Many small businesses really have not integrated Internet marketing into a comprehensive interactive marketing platform….yet! In our view, winners over the next year will gain a huge economic advantage by using the social web to bring down average costs per lead.

The survey results also indicate email marketing and business websites remain the most popular online marketing tools for small business owners.

In 2010, many small businesses plan to spend the same or more on the following online activities:

• 57% on email programs to current clients.
• 57% developing a company website.
• 55% on email programs to potential clients.

Here’s a chart reflecting plans to spend more or less (time or money) on online marketing in 2010.

Interest In Social Media Marketing For 2010 Is High

Plans for incorporating social media and web 2.0 marketing strategies into the mix show a notable increase over last year.  In the survey, 28% say they will spend more or about the same time or money on online video in 2010, an increase of 12 percentage points from last year, and 21% say the same for mobile advertising, up 10 points from the previous year.

But…Small businesses are confused about how and why to use it!

Overall interest in using social media in 2010 is nearly the same as in 2009, as 58% agree that social media is a good way to both increase business and know what people are saying about a business. However, some 46% say they wish they knew more about social media, and 27% think only young people use social media.

Small business leaders say Facebook and LinkedIn are more effective than other sites. We note this could be self fulfilling if they do not know the other local or vertical market social sites that are available or how to use the larger ones properly. Among those who say social media is “very or somewhat beneficial” to business:

• 33% say Facebook is more effective than others.
• 21% say LinkedIn is.
• 19% say Twitter.
• 17% say MySpace.
• 15% say YouTube.

As the chart below reflects, among small business owners who use social networking, the top benefits cited include generating leads (50%), keeping up with the industry (45%), and monitoring online conversations (44%).

Overall, this study reinforces the momentum behind social media marketing for small business. But also points out the confusion and complexity that small businesses face implementing new media marketing programs.

What do you think? Does this sound right?