Penetration of Online Media Surpasses Traditional Media for First Time Among Small-Business Advertisers

The results of the latest wave of BIA/Kelsey’s Local Commerce Monitor study reveal for the first time the penetration of digital/online media has exceeded that of traditional media among small and medium-sized business advertisers (SMBs).

In this survey of 302 SMBs, the penetration of digital/online media increased from 73 percent in August 2008 to 77 percent in August 2009, while that of traditional media decreased from 74 percent to 69 percent during the same period. Penetration is defined as the percentage of SMBs using a given type of media, irrespective of spending level.

Percentage of SMBs Using Online Media and Traditional Media

SOURCE: Local Commerce Monitor, Wave XI, July 2007 (sample 304); Wave XII, August 2008 (sample 299); and Wave XIII, August 2009 (sample 302). Methodology: Online survey. Conducted by BIA/Kelsey with research partner ConStat.

The Local Commerce Monitor study also revealed a decrease in overall ad spending by SMBs, owing to unfavorable economic conditions and the long-term substitution of traditional media with lower-cost digital/online media. SMBs decreased spending on advertising and promotion by 23.5 percent, from $2,734 annually (reported in August 2008) to $2,092 annually (reported in August 2009). In spite of the overall decrease in spending on advertising and promotion over the past 12 months, on average, SMBs increased spending on Web sites and profile pages by 26.8 percent, from $608 in 2008 to $769 in 2009.

Detailed results of the study are available for BIA/Kelsey clients. For information, please contact Michael Taylor at This e-mail address is being protected from spambots. You need JavaScript enabled to view it This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

About Local Commerce Monitor

Since 1999, BIA/Kelsey, in conjunction with research partner ConStat, has surveyed nearly 4,000 small and medium-sized businesses (SMBs). The survey measures where SMBs are spending their advertising and promotional budgets and how their media usage and spending habits are evolving. Local Commerce Monitor draws its sample of business respondents from a mix of nationally scoped MSAs, which include first- and second-tier markets. This is the only ongoing research study designed to help understand how SMBs are using media and adapting new technologies.

(ARA) - Given the state of the U.S. economy, you might assume that turning your hobby into a small business right now isn't the best idea. On the contrary, launching your own small business in a down economy can be a very smart move -- if you plan in advance and set yourself up for success from the start.

Here are 10 tips that all budding entrepreneurs can follow to make their dreams of owning a small business a reality in 2010:

1. Develop a business plan

While preparing a business plan is a requirement for any small business owner seeking to raise start-up funding through a traditional loan or venture capital, every business can benefit from this practice. Your business plan should define your business, its products and services, while outlining your business goals, operating procedures and competition.

2. Consider incorporating your business or forming an LLC

While many small businesses choose never to incorporate, there are many benefits to doing so. "Incorporating your business or forming a limited liability corporation (LLC) is important because it helps protect your personal assets from business debts and liabilities," says Karen Kobelski, general manager of BizFilings, a full-service online incorporation service provider offering small business owners fast, easy and economical ways to form a corporation or other business structure online or by phone. "However, incorporating isn't just about protecting your personal assets; other benefits of incorporation include tax advantages and greater credibility with customers and business partners, which can give incorporated businesses a much-needed advantage over non-incorporated operations."

3. Select an accountant and attorney

Many small business owners seek advice from accountants and attorneys. As you research your options, get referrals from friends and family and turn to professionals who have worked with other small business owners or companies in your specific industry.

4. Get necessary tax identification numbers, business licenses and permits

If your small business will rely on employees, a federal tax identification number or employer identification number (EIN) is required. Most businesses will also require licenses and/or permits to operate in your city, municipality, county and/or state.

5. Insure your business and investigate other requirements

Some industries have specific insurance requirements -- do your homework. It's also important to research additional government tax and insurance requirements that might apply to your business, particularly if you plan on having employees.

6. Open a business bank account

When you own your own business, it's crucial to separate business finances from personal ones, so opening a business account is key. If your business is not incorporated, most banks will require a DBA (doing business as); contact your bank about requirements prior to opening an account.

7. Arrange your business accounting and apply for loans

It is critical to properly account for all business disbursements, payments received, invoices, etc., whether you use an accountant or handle the finances yourself. If you don't have enough capital to start a business, seek funding from banks or through Small Business Administration (SBA) loan programs.

8. Establish a business line of credit

Establishing business credit will help reduce the number of times your company prepays for purchased products/services and helps establish a strong credit history, a beneficial practice when negotiating vendor and supplier relationships.

9. Ready your workspace

For home-based small businesses, make sure that you are meeting the zoning requirements for your area. Non-home-based businesses will likely require office space, which could lead to the purchase/lease of furniture and office equipment. Planning for this in advance will ensure that you have enough money to cover these costs.

10. Create a brand identity and start marketing your business

To diversify your business from the competition, you should establish your company's identity and start publicizing your products and services. Consider developing a unique business logo to include on business cards and letterhead, advertising your business in the local telephone directory, and developing customer leads -- from friends, family, and business associates. These activities will help potential customers find and remember your business and should reflect the personality of your organization.

Don't put your dreams of financial independence and doing what you love on hold until the world starts turning in your favor; start planning for your future today.

Courtesy of ARAcontent
 

Twenty four business owners representing nineteen different companies got together at 7am on Tuesday, May 18 at Vinter's Cellar to network and share information about their companies.  Pro Football Hall of Fame Quarterback, Fran Tarkenton interviewed via telephone, a Successful Small Business Owner who is now the CEO of a Multi-Million Dollar New York Stock Exchange Company during the event.  Insights on the changing economy, marketing and developing new customers was part of the message received by those in attendance.

The energy was high, expectations were exceeded, new relationships formed and many of the Small Business Owners in attendance scheduled meetings with their newly developed contacts.  It was exciting to see new strategic alliances being developed right there in the room.

Click here to see a short video of some of the attendees.