Small and Medium Business up their online budgets in 2012

Small and Medium Businesses are planning on spending 26% of their marketing budgets in online marketing in the coming year. This is according to Local Commerce Monitor, BIA/Kelsey’s 15 year tracking study of SMB advertising spending.

According to BIA/Kelsey, ‘We are on the verge of a real revolution in marketing platforms that serve SMBs, in particular around digital presence.’

More than half (52%)of the respondents in the study report that they use social media to promote their business and nearly half (49%) say they purchased online advertising of some sort over the past year.

In late 2011, BIA/Kelsey forecast that by 2015, only 30% of marketing budgets for SMBs would be spent on traditional media such as print, radio and television. This means that small and medium business on average will be spending 70% of their budgets on things like Search Engine Optimisation, Search Engine Advertising, Display Advertising and Social Media.

According to BIA/Kelsey this means in dollar value in the US, the allocation of SMB marketing spend to online marketing will reach $40 billion in 2015 which is up from only $22 billion in 2010, an average growth rate of 12% per year. In the Australian market online advertising spend is now at $2.6 billion a year and the growth rate each year is even higher at 17%!

This rapid growth rate potentially means that if you are a small or medium business and you are not growing your investment in online marketing by 17%, or at least a little each year, you are falling behind.

Webfirm is a specialist online marketing agency – talk to us today about any online marketing needs – phone us on 1300 932 347 or email us at

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  • Josh says:

    It’s interesting to see this part of marketing growing year by year.

    Our experience has seen a numbr of local businesses both in New Zealand and abroad, expand their reach through Search Engine Advertising specifically so one important note to make is that people always target mediums which connect their with prospects. i.e. Don’t be the local lawn mower who has a site on Facebook only to realise all of his client base hate it. 🙂

  • Since we’re deep in the Internet age, it’s understandable that a lot of businesses are willing to spend more on their efforts to expand their reach across the Internet. They’re now spending money on SEO, website design, and all those stuff that can help with online visibility.

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