Start-up small businesses reported that as they are getting established in their local markets they use a lot of free and low cost media. No surprise that they are focused on visibility and are heavy users of giveaways and community sponsorships. Of the paid media they use, the most value comes from broadcast (radio and TV) and mobile (enhanced mobile listing, mobile display, and mobile app). Sellers should focus on what their overall plans are and how advertising can help them stand out as well as increase awareness.
In BIA’s latest Local Commerce Monitor™ (LCM) survey reports, Advertising Habits of New Small Businesses and Advertising Habits of Established Small Businesses, we looked at which media channels startup small businesses (0 to 3 years) and established businesses reported gave them the best (either 10-19x or 20x plus) return on their investment.
Established businesses, those that described themselves as either “growing & expanding” or “maintaining size and share,” have bigger advertising budgets and invest in media channels that drive sales and growth. They reported having the best returns across a variety of channels, including traditional (cable & TV), digital (streaming audio), social (live social broadcasts) and mobile (mobile display). They may be established, but they are still building brand awareness. Media sellers can generate additional revenue by offering cross-channel promotions and helping them by providing content for their website and social media.