SME's to spend more marketing budget online
Nearly a third (65%) of UK SMEs have an annual marketing budget of less than £5,000, with many small businesses failing to set a budget at all, according to a new poll.
Touch Local carried out a poll amongst a sample of UK small business owners, to find out if they had set a marketing budget for 2011, and what forms of marketing do they consider to be the most effective.
More than a third (38%) of business owners who took the survey, confirmed that they have a marketing budget for 2011. Many of them also specified that the budget was limited, due to the fact that they do not have any excess in their capital to dedicate to marketing.
Most of the respondents (62%) stated that they did not have a set marketing budget for 2011.
More information acquired from business owner who have a set marketing budget:
In the current “challenging” economic climate, it’s not surprising that 65% of UK SMEs have an annual marketing budget of less than £5,000. Only 2% of the respondent stated that they are planning to spend more than £100,000 on marketing activities in 2011.
Overall, it seems that there is a definite shift towards online advertising:
o 80% of business owners felt that investing in a website had a high priority when allocating their marketing budget
o One in 3 of the respondents placed high importance on advertising in online business directories, versus only 1 in 10 for print directories. What’s more, 60% of small business owners stated that they were not planning to spend any of their marketing budget on print directory advertising
o Nearly half of the survey respondents are placing high priority on search engine marketing and 1 in 3 on email marketing
o When it comes to advertising in newspapers and through leaflets, 23% consider it to be a high priority and 16% are not planning to spend any marketing budget on these in 2011
o Other type of advertising, such as video, direct mail and telemarketing have predominantly low to medium priority
More information acquired from business owner who do not have a set marketing budget:
Even though 62% of SMEs have no marketing budget for 2011 most of them could end up squeezing their budgets for marketing or advertising.
However there is major shift in the approach of advertising with majority of the respondents willing to invest in their company website (61%), followed by SEO (27%), email (23%).
When it comes to advertising on business directories, 18% of businesses would invest in online business directories compared to only 10% in print directories which is more or less as expected.
Interestingly, 53% of the respondents will not advertise using Video, reasons being the high production and distribution costs.
Only 1 in 8 of respondents would advertise through Social Media, citing lack of time and resource as a reason.
Other types of advertising like direct mail pay per call services and telemarketing was low in priority.
The study showed that SMEs throughout UK are investing in a more modern channel rather than the traditional method of marketing.