Social Ads Drive Awareness, Revenues for SMBs - eMarketer

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Social Ads Drive Awareness, Revenues for SMBs

SMBs were about three times as likely to rely on social ads as any other format

October 27, 2016

Social media ads are the dominant format used for both brand awareness and revenue generation among US small and medium-sized businesses (SMBs), according to research. And SMBs don’t seem to differentiate much between the two goals.

According to September polling from video editing software firm Magisto, more than 40% of SMBs in the US rely on social media ads for brand awareness as well as revenue generation. It was the only response chosen by more than 13% of respondents.

About one in 10 relied on digital advertising generally for both brand awareness and revenues, a few points behind print advertising. Only a tiny 2% of respondents pointed to mobile as the primary format driving awareness and revenues.

Regardless of the format relied on, respondents did not seem to differentiate much between ads that drove revenues and ads that drove awareness: There was at most a 3-percentage-point difference in responses or the two goals within each format.

Even if mobile and digital ads in general weren’t the primary drivers of awareness and revenues for respondents, they did report spending significant amounts on both. Two-thirds of SMBs surveyed used digital ads, and more than half used mobile ads specifically.

Forty percent of respondents were allocating 50% of their marketing budgets or less to mobile, while 37% said the same of digital. Some respondents were heavily invested in digital ads: 15% spent at least three-quarters of their budgets on digital placements. Just 5% spent that much on mobile.

Small-business owners are bullish about their future revenue prospects, according to other research, and are looking to new advertising and marketing strategies to help facilitate that growth.

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