Thursday, 19 March 2009

SMBs focus on new areas of online spend

Media Post comments on a new report from the the US by Borrell Associate that forecasts a tripling of spend by small and medium-sized businesses over the next 5 years due to local companies pouring more money into developing their websites and other online promotional activity.

The report says that whereas interactive ad spending across segments such as display, search and email will slow their pace of growth (by only 10% in the next five years to $7.5 billion), the level of non-ad spending on things like websites or online promotions and public relations will increase from 7.9% to 18.1% of interactive marketing budgets from 2008 to 2013.

On the advertising side, Borrell estimates that paid search will continue to be a key part of SMB spending while banner ads will give way to video. Meanwhile, standard format advertising, which currently accounts for 47% of all SMB interactive spending, will make up less than 19% by the end of 2013.

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