Less than half of small businesses are expecting higher revenues by the end of the year, according to a report conducted by Hurwitz & Associates and sponsored by Campaigner.
The study, titled “Small Business Marketing Health Check,” found that 46 percent of small businesses are expecting a turnaround by the end of 2009, while 22 percent expected flat revenue and 32 percent anticipate revenue to decline.
A total of 259 small business owners were surveyed for the study.
Small businesses appear to be adjusting their marketing spending this year according to their revenue expectations.
Of those that are expecting an increase in revenue, 65 percent raised or planned to raise marketing spending, while 30 percent looked to keep marketing spending steady and 5 percent planned to decease their spending.
Meanwhile, of the small businesses expecting flat revenue, 57 percent planned on flat spending, 32 percent planned an increase in spending and 10 percent planned a decrease in marketing spending.
Of the small businesses expecting decreased revenue, 41 percent planned on reducing their marketing spending, 36 percent planned on boosting it and 23 percent planned on keeping it flat.
The survey also revealed that small businesses are shifting more of their marketing efforts toward digital media campaigns, which are cheaper than conventional means.
“The survey clearly reveals that the use of low-cost Web-based marketing tools is playing a strategic role in helping businesses succeed,” said Laurie McCabe, partner at Hurwitz & Associates in a statement. “Making a few changes to incorporate more online tools into the marketing mix seems to be a key ingredient to small business success.”
Specifically, e-mail marketing seems to be getting more attention from small businesses. Forty-six percent said they currently use e-mail marketing, while 36 percent said they plan to use e-mail marketing in the next 12 months.
Just 18 percent do not have plans to utilize e-mail marketing.
“Email marketing is one of the best ways for small businesses to attract and retain customers while also growing revenue, which were two of the top business challenges identified by small businesses in the survey,” said Steve Adams, vice president of marketing at Protus, the provider of Campaigner.
He added, “As we head into 2010, now is the ideal time for small businesses to look at their marketing programs and make sure they have a combination of Web-based and traditional marketing tools in order to best position their businesses for strong revenue growth.”
Sources:</strong
http://www.reuters.com/article/pressRelease/idUS129637+02-11-2009+BW20091102
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