SMB Data Point of the Week: SMBs That Use Video Spend More
SMBs that use video* for advertising and promotion (Video SMBs) have more aggressive advertising spending plans than those that don’t use video, according to BIA/Kelsey’s Local Commerce Monitor™ survey of small and medium businesses (SMBs).
The average annual ad spend for Core** video SMBs is $3,778, compared with $2,138 for Core SMBs that don’t use video. Among Plus Spenders**, video SMBs spent an average of $87,923 annually, compared with $61,968 for non-video SMBs. More than half reported they were planning to increase their overall advertising budgets in the next 12 months.
Sellers looking to sell to this group should not pitch video service either to create or manage video alone. SMBs that use video use multiple channels for their videos (website, Youtube, mobile, social, etc). They also spend a lot of their ad budget on social media. Video ads should be sold in the context of a broader and integrated campaign strategy across multiple platforms.
A new LCM report on SMBs That Use Video will be released to our Advisory Services clients on Thursday (July 21) and will be available for purchase in our eStore.
* Video media in the LCM survey include website video, Youtube, video banner/display, and other video on other sites not already mentioned.
** Core SMBs have an annual spend of less than $25,000. Plus Spenders have an annual spend of at least $25,000.
BIA/Kelsey’s LCM, Wave 19 reports can be purchased a la carte in the BIA/Kelsey eStore. Our LCM reports look at where particular SMBs (broken out by size, vertical, etc.) spend the most, as well as the top channels for advertising and marketing.