This is a watershed report as small businesses use online more than traditional advertising for the first time ever.
————————
August 21, 2009: BIA’s Kelsey Group reports in a “Local Commerce Monitor” study that online/digital media penetration among small and medium-sized advertisers came in at 77 percent in August, up from 73 percent a year ago and passing traditional media, which decreased to 69 percent penetration from 74 percent in August 2008.
“Penetration” refers to the percentage of companies using a particular type of media, regardless of how much they spend. As a percentage of total advertising for the businesses surveyed, digital/online increased to 36.8 percent from 22 percent from August 2008 to August 2009.
“We have been tracking the trend of digital/online media replacing traditional media over four waves of the ‘Local Commerce Monitor’ study,” Kelsey Group Director/Research Steve Marshall said. “The milestone of digital/online surpassing traditional media among [small businesses] is an indicator of the broad shift to online platforms.”
The study also found a decrease in overall ad spending by small businesses, due to economic conditions and “the long-term substitution of traditional media with lower-cost digital/online media.” Small businesses decreased advertising and promotion spending by 23.5 percent between August 2008 and August 2009.
The Kelsey Group also reports that the number of businesses using the Internet to track or measure sources for new business leads has risen to 30 percent from 22 percent.
———————-