According to Borrell Associates report, it is predicted that the expenditure on local advertising by small businesses in U.S will be increased by 34% by 2013 from the levels of 2008. of the companies planning to increase their expenditure are likely to spend 70% of this budget on paid search and video. “Main Street Goes Interactive” report states that there are 14.6 million SMBs in the U.S. There will be nearly 275 percent increase on streaming audio and video, about 140 percent increase on e-mail and direct ads, nearly 35 percent increase in paid search, and 8 percent increase in standard display ads by the SMBs.
Web advertising spending by small businesses in real estate and computer-services, are 30 percent and 45 percent respectively of their advertising budgets.
The report also forecasts that in the next few years SMBs are likely to triple their expenditure on improving the technology, design of their websites and telecommunications expense, raising its share 8% (2008) to 18% in 2013.
The spending on banner ads declined by 54% of the total online ad expenditure, as most of the SMBs favored search engine advertising, online directory listings and streaming video. 80.4% of respondents said email is beneficial, 56.8% of the respondents find search engines successful and 42.1% of them say display advertising successful.
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