Spot Runner Survey Reveals Small and Medium Businesses Rank TV
Advertising over Radio, Newspapers, Magazines and Internet Keywords;
SMBs That Utilize Television Allocate Nearly Three Times More Budget
to TV than Any Other Type of Advertising
LOS ANGELES--(BUSINESS WIRE)--March 28, 2006--According to the results
of a new survey released by Internet-based advertising agency Spot
Runner, businesses that use TV advertising said they allocate almost
one-third of their budget to it -- three times more than any other
type of advertising. Furthermore, more than 60 percent who use TV
advertising have increased their spending on it over the last two
years.
For those who have not employed TV advertising, perceived cost remains
the dominant barrier. Two-thirds of small businesses are interested in
advertising on TV, but in the past year, less than 15 percent of those
polled had done so, because it was assumed to be out of their price
range. In addition, 77 percent said it is "too expensive to buy the
time on air" or "too expensive to develop advertisements" themselves.
However, the research findings show that, all things being equal,
small businesses would prefer to advertise on TV over radio,
newspapers, magazines and Internet keywords. Print and Yellow Pages
are the first programs they would decrease in favor of new advertising
methods.
"Clearly, local businesses are increasingly looking for ways to drive
more value from their marketing dollars. They are becoming more
innovative with their advertising programs and shifting their budget
away from methods they've traditionally used, such as print and Yellow
Pages," said Nick Grouf, chairman and CEO of Spot Runner. "This
creates a tremendous opportunity for local television, especially now
that Spot Runner has given them an easy and affordable way to access
it. Local TV is an extremely efficient way for businesses to reach
their audience because it offers the ability to micro-target by
geography, as well as demographics and psychographics."
The survey also yielded the following results about small and medium
business advertising behavior, spending and preferences:
-- Where SMBs Advertise Today: More than 60 percent of small and
medium businesses advertise locally in the Yellow Pages and on their
company websites, while 40 percent use direct mail.
-- Yellow Pages Advertising: While the average small and medium
business spends nearly one quarter of their advertising budget on
Yellow Pages, it is one of the first advertising vehicles they
decrease to try new mediums.
-- TV Ad Budgets: If they were to purchase TV advertising, almost 30
percent would allocate new advertising dollars while the rest would
pull from existing advertising mediums in the following order: daily
newspapers, Yellow Pages and weekly newspapers. According to data from
the Kelsey Group and TNS Media Intelligence, the market for local
advertising totals close to $100 billion.
-- Internet Advertising: While many small businesses believe online
advertising is "effective," 69 percent recognize there are customers
they simply "cannot effectively reach through the Internet."
-- Using the Internet to Conduct Business Operations: Small and medium
businesses are increasingly comfortable using the Internet to conduct
business. Of those surveyed, 78 percent make business purchases
online, 72 percent track packages, 64 percent book travel and 52
percent email customers. Nearly half take customer orders and pay
bills online.
"The survey findings clearly illustrate two important trends happening
within the small and medium business market. The first is there is
strong pent-up demand for affordable local TV advertising. The second
is they are using the Internet to improve the way they operate, save
money and streamline business tasks," said Seth Cohen, vice president
of research at Spot Runner. "By leveraging the power of the Internet
to make TV advertising available to local businesses, Spot Runner is
leading the convergence of these two trends and creating a whole new
category of advertiser."
Small and medium businesses with revenues ranging from $500,000 to $15
million participated in the survey. The survey covered a variety of
industries, such as construction, retail, professional and technical
services, real estate and leasing, finance and insurance, and
healthcare and social assistance. More details on the survey results
are available to media upon request.
Spot Runner is an advertising agency that specializes in servicing
small and local businesses. It implements comprehensive TV advertising
campaigns in less than two weeks and at a fraction of the customary
cost. By automating the entire advertising process online, Spot Runner
empowers its clients at every step of commercial production, media
planning and media buying. Clients simply log on to
www.spotrunner.com, provide information about their business and
desired locations and then select a commercial from Spot Runner's
extensive library of thousands of pre-produced, high-quality
advertisements. Spot Runner personalizes the ads with the business'
specific information, logos and even their own images. Then, based on
information provided by the client, Spot Runner uses its proprietary
media planning engines to create customized media plans that allow
advertisers to target customers by demographics, networks and specific
neighborhoods.
About the Survey Methodology
The survey was conducted online among 501 small and medium businesses
between March 2 and March 7, 2006. All respondents were from
businesses with annual revenue of between $500,000 and $15 million
that spent a minimum of $5,000 per year on advertising. Respondents
were responsible for advertising decisions for their businesses.
Respondents were provided by Survey Sampling International, and the
survey was hosted by Decipher, Inc. Margin of error is +/- 5 percent.
About Spot Runner
Headquartered in Los Angeles, Spot Runner, Inc. is a privately held,
Internet-based advertising agency that makes it fast, easy and
affordable for local businesses to advertise on TV. Its revolutionary
approach to commercial production, media planning and media buying
services gives local businesses access to a powerful marketing tool
that was previously out of their reach. The entire process is
automated online, making it cost effective for even the smallest of
businesses to use. Visit Spot Runner online at www.spotrunner.com.
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