Online Media Surpasses Traditional Media for First Time
Online Media Surpasses Traditional Media for First Time
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 .
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.
