Palore on SMB Ad Spend

At SEL, Palore CEO Hanan Lifshitz discusses what their investigations reveal about how much SMB advertisers are spending online.

Reader and marketer Tim Cohn did some math on RHD numbers and found an average annual spend of $4.5K (all in).

The numbers Lifshitz presents are very low by comparison: mostly less than $50 per month or $600 per year. Take a look.

7 Responses to “Palore on SMB Ad Spend”

  1. MiriamEllis Says:

    Hi Greg,
    I had read this earlier this morning and was puzzled as to guess how hair salons, for instance, are spending around $30/month on advertising. What kind of advertising can you get for that amount of money? I wasn’t able to think of anything…I think classifieds are more expensive than that, even.

    I did appreciate that they strove to use second-tier businesses in this study. Not the same old categories one is used to.

    I’ve been thinking about hair cutting places ever since I read this article. I really wonder what the most effective form of marketing for a salon. A large sign on the road? YP listing? A top Local ranking? Because it’s the kind of business where people have a limited number of choices in any given town, how hard to hair salons have to market themselves to ensure daily business? Hmmm…just curious about this.

    Miriam

  2. Dave Oremland Says:

    As an advertiser that also seems incredibly low to me. Web advertising is less expensive than print. There are also some deep discounted vertical options for various industries and the businesses within them. I cannot imagine getting much bang for that kind of expenditure. I know some business operators in Boston, though not in those categories, I’ve got to call them and ask about this.

    Dave

  3. Greg Says:

    This is part of the problem: they’re being sold packages that don’t provide much value in terms of ROI.

  4. Tim Cohn Says:

    Correction on my Google average annual revenue per advertiser estimate: Publisher / partner revenue needs to subtracted from Google’s overall gross revenues to produce a more accurate estimate of their average annual revenue per advertiser.

  5. Hanan Lifshitz Says:

    When analyzing total ad spend figures we looked at ALL forms of advertising in a number of IYPs, local sites and vertical sites. Since some of these offer very simple ad packages such as applying a bold format to the business title for as little as $20 a month, and since it appears that many businesses have purchased these simple packages, the average figures were shifted downwards.

  6. elana Says:

    That’s really interesting, I deal with a few small businesses and its always seems that the ones who know what they are doing spend less and get more

  7. Greg Sterling Says:

    Elana, my site has moved over to Screenwerk.com.

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