Study: Brands Will Outspend SMBs on Local Advertising by $9B This Year
June 1, 2017 | Contributed by: Joe Morsello
In the battle for local-market visibility, brands and enterprises are outspending SMBs. Though local businesses are far more numerous, larger brands and retailers have many more resources for exposure in local markets.
As they wake up to the importance of local to mobile users, brands are shifting priorities and budgets. This year they are expected to spend $63 billion on local marketing efforts while SMBs will spend $54 billion. In 2020, the gap is expected to widen to about $12 billion.
Though SMBs can’t match brands’ spending, they do have some competitive advantages. For example, an earlier study found that 55% of consumers shop at a local business over a big box store because of a desire to “support the community.” Local businesses are also often seen as more “authentic” than national brands that carry a more generic, corporate identity.
Increasingly, national brands are trying to overcome that stigma by localizing in search and on social media.