SMBs choose digital over old media

According to new figures from Emarketer, US SMBs are more likely to advertise online than in traditional media.

Taken from the “Local Commerce Monitor Wave XIII” from The Kelsey Group and ConStat:

77% of US SMBs used online for advertising in August 2009, compared with just 69% that used traditional media. This is the first time penetration of online advertising surpassed traditional. In an earlier survey from August 2008, 73% advertised online while 74% used traditional media. In an earlier survey from August 2008, 73% advertised online while 74% used traditional media.

However, annual adspend by SMBs as a whole was down from an average of $2,734 in August 2008 to $2,092 in August 2009, but interestingly adspend on Websites and online profile pageswas up more than 26% to $769.

In Europe online advertising spending growth in Europe has fallen in 2009, but is expected to remain in the black, says a report from IAB Europe, PricewaterhouseCoopers (PwC) and Screen Digest.

They say:

Total online ad spending will reach €12.9 billion ($18.96 billion) in 2009, a 2.2% increase over 2008. Growth is expected to pick up further in 2010, rising 6.5% year over year—still sluggish compared with the 21.3% climb in 2008.

In the UK:

Display revenues are expected to fall by 4% in 2009, but the nondisplay market is picking up less of the slack, with only a 0.4% rise predicted this year. Total online advertising revenues will fall by 0.4% in 2009, and trend slightly upward in 2010, by 2.4%.

I think this goes to demonstrate that online adveritsing is, although still a fraction of that offline, the tide is turning as brands continue to realise the importance of the online audience to their sales.

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