Report: Small Businesses Avoid Digital, Social Marketing

Report: Small Businesses Avoid Digital, Social Marketing

Social media and digital marketing are receiving considerable attention and visibility as highly effective, must-have marketing tactics, particularly for larger enterprises. However, a report from Brandmuscle reveals that many smaller local affiliates are slow to adopt social and digital media because of concerns about complexity. Instead, they are favoring some (but not all) of the more established marketing tactics (e.g., local events, direct mail, and coupons).

The report surveyed hundreds of local dealers, agents, and franchisees across a wide range of industries and asked them to share insights on their local marketing experiences. Brandmuscle, a local marketing automation platform provider, compared the results to those identified by tracking more than $2 billion in co-op and channel investments made by Brandmuscle clients over the past 3 years. The result is a comprehensive national survey on the current state of local marketing across social media, digital media, print media, direct mail, events, and more.

Highlights of the report (available as a free download) include the following:

1) Some established marketing tactics are highly rated

  • Local affiliates deem some of the most tried-and-true marketing tactics as most effective. In terms of overall satisfaction, top-rated tactics include local events, coupons, billboards, and email.
  • The most frequently used tactics are coupons (83%), direct mail/postcards (81%), local events (79%), email (72%), and website (72%).
  • Least frequently used marketing tactics include daily deals (29%; e.g., Groupon), magazine advertising (45%), billboards (45%), non-traditional advertising (47%; e.g., pizza box toppers, gas pump toppers, vehicle wraps) and TV (50%).

2) Traditional media leaves many local affiliates dissatisfied

  • "Old media" is taking it on the chin when it comes to performance. The lowest rated tactics are magazine advertising, newspaper advertising, and Yellow Pages.
  • Old media costs big money. "Expense" is the top reason local affiliates are shying away from TV, billboards, radio, newspaper advertising, and Yellow Pages listings.

3) Digital and social media adoption still lags

  • Adoption rates for digital and social tactics remain relatively low: 40% of local affiliates don't use keyword search, 37% don't use Facebook, and 57% don't use Twitter.
  • New media are too complicated and time-consuming. Affiliates cited complexity as the top reason they don't invest in Twitter, Facebook, online advertising and online keyword search.
  • Despite a relatively high adoption rate (72%), one of four local businesses we surveyed (28%) still don't have a website.

4) Local marketing budgets are growing

  • Marketing budgets are growing, with 33% of respondents saying that their budgets are increasing by more than 10% and more than half (52%) saying their marketing budgets will remain about the same.
  • Overwhelmingly, businesses are using marketing to generate new business: 83% say the top reason is to generate new leads and new customers.

Summary

"Consumers are shifting the way they make purchases with some reports estimating that as many as 80% begin their search for products and services online," said Clarke Smith, chief strategy officer for Brandmuscle. "According to our study, the primary reason local affiliates avoid online marketing is because it is 'too complicated or time-consuming.' Marketers are in a unique position to help their local affiliates make the journey to online marketing, which when executed correctly can be both cost-effective and measurable - two key considerations when attempting to maximize the ROI of smaller budgets."

Brandmuscle helps national brands capitalize on opportunities and local market conditions with brand-compliant, customized marketing across all media and formats. For more information call 866-464-1307 or visit brandmuscle.com.

Published: October 29th, 2014

Share this Feature

Comments:

comments powered by Disqus
Golden Corral
ADVERTISE
SPONSORED CONTENT

Franchisor Topics »

Premium Services

IMN Business Opportunity

IMN
IMN creates engaging and relevant lifestyle, entertainment, and industry...

Michael H. Seid & Associates Business Opportunity

Michael H. Seid & Associates
MSA provides domestic and international franchise advisory services to...

TSheets Business Opportunity

TSheets
TSheets is the #1 employee rated and requested time tracking software on...

AXIS Integrated Business Opportunity

AXIS Integrated
With over 25 years of experience in the franchise industry, AXIS...

Franchise Consumer Marketing Conference Business Opportunity

Franchise Consumer Marketing Conference
June 19-20, 2018. Intercontinental Hotel, Atlanta (Buckhead), GA. An...

FranConnect Business Opportunity

FranConnect
FranConnect is the #1 provider of franchising solutions in the world with...

FranchiseGrade.com Business Opportunity

FranchiseGrade.com
Franchise Grade is The Authority on Franchising. Our proprietary Franchise...

Franchise Leadership & Development Conference Business Opportunity

Franchise Leadership & Development Conference
Oct. 10-12, 2018 Intercontinental, Atlanta, GA. Over 350 franchise...


Franchise Update Magazine

A targeted, quarterly magazine that takes CEO's, VPs and Sales Executives to the cutting edge of franchise development.

Subscribe to Franchise Update Sales Report

A Franchise Update Media Production
Franchise Update Media | P.O. Box 20547 // San Jose, CA 95160 // PH. (408) 402-5681
Copyright © 2001 - 2017. All Rights Reserved.

In Loving Memory Of Timothy Gardner (1987-2014)