Our latest survey of local advertisers shows just what they’re thinking about upcoming budgets – and how much they’re focusing on all things digital. The highlights are from Borrell’s ongoing surveys of SMBs and offer fascinating insights into what’s about to happen in local marketing. The full 58-question survey is avaliable to Borrell subscribers, here:

1. SMB Marketing Patterns
Q2 /Q3 2013 Survey Highlights
December 2013

2. Background & Methodology
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This survey is part of ongoing Borrell surveys to monitor changes in
advertising patterns at the local level.
Respondents for this wave were solicited from current, past and
prospective advertising clients of 14 local media companies across a
wide geographic region of the U.S.
Local media companies sent invitations to participate; Borrell
collected and analyzed results.
Surveys were conducted May 1 through Aug. 23, 2013.
There were 903 respondents and 440 completions.
Respondents were offered an incentive to participate (an iPad,
awarded by random drawing).
More information and details available at www.borrellassociates.com or by
emailing gharmon@borrellassociates.com.

3. SMBs are hopeful.
64% are “very” or “somewhat” optimistic
about near-term (12 months) improvement
to the local economy.

4. Most SMBs optimistic about economy
Finding Qualifed Employees
43%
41%
39%
Very easy
Somewhat easy
27%
7%
10%
24%
21%
17%
14%
Neither difficult nor easy
19%
19%
13%
Somewhat difficult
9%
2%
Next 6 months
3%
2%
Next 12 months
Very optimistic
Neutral
Very pessimistic
18%
Next 2 years
35%
Very difficult
16%
Don’t know
16%
Somewhat optimistic
Somewhat pessimistic
40. How would you rate your overall expectations about local area economic conditions over the next few time periods ? N = 477

5. SMBs Are Spending More.
Marketing budgets are up 10.7%.

6. Total Marketing Expenditures on the Rise
Gross Revenues
Total Combined Budgets
$ 2,283,300
$ 97,100
Net of Revs
4.25%
$88,277
+ 10.7%
$79,713
$9,000
$6,000
2012 Total Ad and Marketing Spend
38. Not all advertising and marketing money is spent on
ads alone; what percentage of your advertising and
marketing budgets is spent on advertising versus "nonadvertising" expenses? [Total should be 100%.] N=399
2013 Total Ad and Marketing Spend
Mean
Median
37. What do you expect your total direct spend on advertising and marketing efforts will
have been in 2012 and will be in 2013 N=351

7. Moderate Growth for YOY Spending
Avg. Media Bought = 5.0
Plans
Ads Bought
47%
None
8%
1
8%
2
14%
3-5
27%
39%
6-9
19%
18%
10-14
15 or more
8%
6%
7%
Don't know/Not sure
1%
Spend more
money
Spend the same Spend less money
amount
Don't know
1. To begin, in how many different media outlets do you currently advertise? N = 903
5. Compared with what you spent on advertising in 2012, will you spend more money, less money, or about the same in 2013? N = 827

8. SMBs are Pestered.
On average, SMBs get 5 sales calls per
week and listen to only 1 of them.

9. Sales Reps Call Every Day
60%
Attempts:
Mean : 18.6
Median :8
Pitches Taken:
Mean : 6.5
50%
40%
30%
20%
10%
0%
0
1-4
5-9
10-14
15-19
Contact Attempts
20-24
25-29
30-49
50 or
more
Don't
know/Not
sure
Pitches Taken
3. Many different media work to earn your business as an advertiser. In an average month, how many total attempts are made to speak with or reach you
about any advertising opportunity? N = 804
4. In an average month, how many advertising sales people do you speak to, in person or on the phone, among these incoming efforts? N = 830

10. SMBs Favor Newspapers.
Newspapers get 22% of their ad budgets,
holding the largest share.

11. Share of Ad Budgets: Digital is No. 2
(among this sample)
22%
19%
12%
NOTE: Borrell’s spending data for the entire U.S. indicates
that digital ad spending now comprises 25% of local ad
budgets, newspapers 19%, radio 12%, and local TV 12%.
The difference in the chart below is likely due to the fact that
responses were from highly localized, smaller businesses.
9%
7%
8%
8%
5%
3%
3%
3%
1%
1%
6. Please estimate what portion of your total ad spending next year will be spent on the media listed below. Estimate the PERCENTAGE each
will get in 2013. [Amounts should total to 100%.] N = 657

12. SMBs ‘Liking’ Digital
More.
42% of them pegged digital media
for more spending.

13. Online Spending is an Energizer Bunny
it keeps going and going and…
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Online/Digital
Mobile
Direct Mail
Radio
Local
Newspapers
Increase
Other Local Outdoor and Broadcast TV
Print Pub
OOH
Stations
Stay the same
Cable TV
Stations
Print
Directories
Cinema
Telemarketing
Decrease
7. Thinking of your total advertising budget, as compared with 2012, do you think your spending will increase, stay the same, or decrease in
the following categories in 2013: [Choose one response for each item listed below.] N = 689
Other

14. SMBs Give Facebook
a Big Thumb’s Up.
70% use FB, compared with
64% two years ago.

15. Facebook is Top Dog; Google+ in the Mix
Social Sites Used
Facebook or FacebookConnect
70%
GooglePlaces/Google+
42%
Twitter
33%
Yahoo Local
19%
Yelp
20%
Pinterest
15%
Foursquare
11%
Bing
10%
Tumblr
Other (please specify)
None of above
3%
4%
20%
29. On which, if any, of the following websites does your business or company have a listing that your business or company wrote and placed? N = 509

16. SMBs Diss Deals.
77% aren’t participating; only half
who do are satisfied.

17. Deals Get Mixed Results
Satisfaction
Deals
Don’t
Know
2%
33%
32%
Yes
21%
16%
14%
No
77%
6%
Very satisfied
Somewhat
satisfied
Not very
satisfied
Not at all
satisfied
Don't know/No
answer
22. Have you participated in a "Deal of the Day" or similar program where consumers purchase a certificate or coupon at a discount for your business? N = 514
How satisfied have you been with your overall "Deal of the Day" experience? N = 120

18. SMBs Are Poised to
Embrace Mobile.
85% say mobile presence is important,
yet only 19% engage in mobile marketing.

19. Mobile is Becoming the New Black
Importance of Digital Visibility
51%
34%
8%
5%
Very important
Somewhat important
Not very important
Not at all important
3%
Don't know/Does not
apply to us
32. How important is it to your company to have "high visibility" on web and mobile platforms so customers and prospects can easily find
your website and your physical location? N = 308

20. Demand for Mobile Marketing is Pent Up
Used Mobile
Don't
know
4%
Pitched Mobile
Yes
19%
No
78%
Don't
know
10%
Likelihood Use Mobile Next 12
No
33%
Yes
57%
30%
27%
18%
17%
8%
Very likely
Somewhat Not very likely
likely
Not at all
likely
Don’t
know/Not
sure
16. Has your company been pitched by any vendors to conduct mobile-based advertising or marketing campaigns or campaigns with mobile
elements in the past 12 months? N = 525

21. SMBs: ‘Showrooming’
is No Big Whoop.
9% say it hurts business; 24% say it helps.

22. Impact From “Showrooming”
“Showrooming” is the process in which a customer uses a Smartphone while in a store
to evaluate and compare product pricing or purchase options.
See Customers “Showrooming”
40%
Physical Location
15%
No
22%
Very often
21%
11%
10%
Somewhat Not very often
often
Not at all
often
4%
Does not
apply
Don't know
Impact of “Showrooming”
Yes
79%
42%
24%
17%
9%
26. Does your business maintain a brick and mortar location
from which you sell physical goods or provide services
directly to customers or other businesses? N = 511
Generally helps
business and
sales
Generally hurts
business and
sales
8%
Little or no
impact positive
or negative
Does not apply
to our business
Don't know
27. How often do you see your customers "showrooming? N = 403
28. Is it your experience that showrooming helps or hurts your business and sales? N = 402

23. Do you think
YOUR Advertisers Are Different?
Borrell conducts thousands of SMB surveys quarterly in
local markets. Find out what YOUR advertisers are
planning to do next year.
For more information contact
Greg Harmon, senior research analyst
gharmon@borrellassociates.com
415-566-4348
22

24. Want To Be In The Know?
Become a Borrell Subscriber
Jim Brown
Vice President, Sales
Borrell Associates Inc
jbrown@borrellassocates.com
757-472-0555
See what the excitement is all about.
March 3-4, 2014, in NYC