Why Small Business Budgets are Strapped for Marketing

As part of its campaign to “give small businesses a push with $250,000 in free advertising,” mega-retailer Staples released a study showing that more than half of U.S. small businesses aren’t spending as much as they’d like on marketing.

“Fifty-two percent of small business owners revealed they would grow their business through advertising and direct marketing if they had a larger marketing budget,” Staples reps announced.

The 6th annual Staples National Small Business Survey also revealed that seven out of 10 small business owners are “optimistic about the future.” It also found that 35 percent of small businesses have increased their spending on social media, and that the average small business spend on marketing and advertising is about $2,000.

IT Investments Up

Could the reason small business budgets are strapped for marketing is that they’re spending so much on technology? A report from The Wall Street Journal hints at that possibility.

Amid a continued impulse to cut spending in most other areas, the nation’s financial officers are actually increasing investments in info tech, the article claims.

“The amount of data that businesses collect — or should collect — is growing exponentially. CFOs believe they can get an edge on competitors by investing in new systems that collect, analyze and share all those numbers, everything from traffic patterns on websites to point-of-sale data in stores.”

Add to that employee demand for mobile access in and out of the office and it’s clear where the future of business lies, financially as well as socially.

“We’re very concerned about the economy and trying to take some measures to cut costs,” said CH2M CFO Mike Lucki. “But this is an investment that we need to make to stay competitive. If you don’t do it, you’re not in the game.”
Originally published: Feb 28, 2012

Leave a Reply

Your email address will not be published. Required fields are marked *