What do nearly half of all small business in the U.S. have in common? They allocate only 20 percent or less of their entire marketing budget to digital strategy for 2015. Although some small business have vowed to make this year the year that they increase their digital marketing budgets, there is still a large gap in implementing proven and effective marketing strategies.
This means more than unupdated social media statuses. Approximately 42 percent of small businesses said that they would be investing in search engine marketing, forgoing using tools like Google AdWords. Another 25 percent said they won’t be actively working on SEO.
It is important to have a diverse and well-rounded approach to marketing tactics. The same Clutch study that revealed the aforementioned statistics also shows us that the number of small businesses throwing 81 percent to 100 percent of their marketing efforts in the digital ring is decreasing. It is the small businesses that devote 21-40 percent, 41-60 percent, or 61 to 80 percent of their marketing budgets to digital that are expected to see an increase. It’s all about diversifying that portfolio.
Of companies that dedicate more than 81 percent to digital marketing, those are indeed small businesses on the smaller end of the spectrum. Those with more than 11 employees tend to have a more diverse marketing plan than those with 10 employees or less. However, nearly half of all small businesses still apply 20 percent or less of their marketing budget to the digital space, regardless of the company size.
One of the greatest issues in surmounting obstacles to digital marketing is educating small business owners. Every expense to a small business is a large expense so owners and CEOs often get caught up chasing down and saving every penny that they forget to invest back into the business. It is true that you have to spend money to make money; and it is also true that digital marketing has been proven to yield the highest return on investment compared to all other traditional marketing methods. Are you ready to make some real money on your marketing efforts in 2015 and develop your digital marketing budget?