Companies in competitive industries place a high priority on advertising for small businesses. Kobe Digital surveyed 1,003 small-business owners and managers to find out how they planned to advertise in 2022.

What do you think of advertising?

Most likely, you’re thinking about a well-known ad campaign by your favorite brand or a cool social campaign that you found on Twitter.

This notoriety means that advertising should be a priority for small businesses.

Advertising can connect audiences, increase brand awareness and generate exposure for businesses when executed properly.

Advertising small businesses is possible in many ways. Your size doesn’t matter when you launch an advertising campaign for your business.

Kobe Digital surveyed more than 1,000 small business managers and owners to find out their digital and traditional advertising strategies. Small businesses are incorporating new digital trends into their advertising strategies, but being cautious with spending because of the coronavirus pandemic.

Our findings

• 70% of small businesses invest in social media advertising. This is due to the increase in social media attention in recent times.

• 26 percent of small businesses used social media to showcase the resources required for a successful campaign. This is a staggering figure.

• Despite the negative media attention, Facebook is still the most popular social media channel (70%), followed by YouTube (54%) and Instagram (52%).

• More than 25% of small businesses spent less than $10,000 in advertising in 2021. 36% of small business owners stated that COVID-19 had had a moderate effect on their businesses. In 2021, 25% of small businesses had their annual advertising budget decrease (25%)

• Small businesses only 30% plan to invest in printed advertising. Businesses with over 250 employees will invest 36% less, pointing out the declining popularity of print as an advertising medium.

• 54 percent of small businesses (54%) plan to spend more on social media in 2022. This is likely due to the growth of social media channels.

Small businesses invest in social media advertising.

Advertising is one of the oldest media strategies. However, small businesses are focused on the future and start with advertising.

Social media advertising, a relatively new medium for advertising, is becoming increasingly popular.

Small businesses employ social media for advertising purposes in 70% of cases.

Although social media is the most popular tool for small businesses, many companies also invest in printing (34%), PPC (31%), or streaming advertising channels (31%).

Stephen Light, CMO, and co-owner at Nolah Mattress believe that social media is a powerful advertising tool due to its reach.

Light stated that social media has an unprecedented reach and can be used to gain deeper insights into consumer behavior and engage with more people – all crucial for business growth and longevity.

Small businesses may prefer social media for its accessibility and reach.

26 percent of small businesses used social media for between 10-30% of advertising in 2021. This shows that social media advertising doesn’t have to cost a lot to be successful.

All sizes of companies can manage their social media spending in a variety of ways.

Software tools can be used to manage social media channels internally. These software tools allow you to schedule posts and make ads. These social media channels can also be managed internally with software tools that schedule and edit posts and ads. This can allow for budgeting for content creation.

Social media ads are not free. However, the minimum spend is dependent on the platform. It ranges from $1 to $20 per day.

Stewart J. Guss is the owner of a personal injuries law firm. He considers the cost associated with social media ads to be a minor factor.

Guss stated that digital is relatively cheap for the number of people it can reach. You have strong control over who your ads are reaching and how many people click them. This is not possible with TV or print ads.

Three platforms are used by avid users every day to provide the largest audience for social media.

Facebook, Instagram, and YouTube: The Big Three of Social Media

In the past few years, Facebook received a lot of negative attention. This event led to a company changing its name.

However, 38% believe that Facebook is the most effective social media marketing tool for small businesses.

70% of small businesses use Facebook for advertising (70%)

Its popularity in social media may be the reason it is so popular with small businesses.

Teresha Aird is the Co-Founder and Chief Marketing Officer at Offices.net. This online brokerage for workspaces says that Facebook has been a major stay in social media since its inception. It makes it an obvious choice for businesses who want to connect with its large user base.

Facebook advertising provides small businesses with analytic tools to target key demographics.

David Morneau is the CEO and SEO Strategist of Breeze. This SEO services company echoes Aird’s point.

Morneau stated that companies want to spend their advertising budgets on the platforms with the highest viewership. “Facebook boasts nearly 2 billion active users per day, which is a huge ad revenue source and allows businesses to dramatically increase their visibility.”

“Facebook boasts nearly 2 billion active users per day, which is a huge ad revenue source and allows businesses to dramatically increase their visibility.”

Small businesses can also advertise on YouTube (54%), and Instagram (52%).

YouTube is the world’s largest video platform. Their advertising hub promises to connect businesses and the people who matter most. 

Small businesses can market their businesses by creating engaging video content thanks to YouTube’s huge reach.

Rameez Usmani is a tech and security expert at Coding Store. This digital signage and certification company believes that video will be the future of marketing in Los Angeles online.

Usmani stated that short-form content is the best for B2B and C marketers regarding video creation. He expects to increase his efforts for 2022. “Facebook and Instagram are the most used video-sharing platforms. Instagram is one of the most efficient video marketing platforms.”

“Short-form content is the best for B2B and C marketers regarding video creation. They expect to increase their efforts for 2022 …”

Instagram allows users to share photos and videos with friends, family, or followers.

Businesses can reach new and existing customers easily with Instagram ads. Instagram allows you to turn any post into an advertisement. All you need to do is determine the budget and identify your target audience.

Small businesses can also use Instagram Shop to allow their audience to shop and browse products.

James Shalhoub is co-founder of Finn, a sustainable dog wellness business. He finds Instagram to be the best platform for his brand.

“…Instagram is our most popular and highest user engagement for our brand,” Shalhoub stated. “Our Friends of Finn are an active group of promoters, and referrers, and have helped us cultivate critical feedback on how we market and sell our product.”

Finn and a dog influencer teamed up to promote their soft chew supplement code in a Valentine’s Day posting.

This Instagram post can balance audio and creative visuals.

Important to mention that Instagram is owned by Facebook (or Meta), which could explain why so many small businesses flock to the platform.

These platforms, as well as other emerging social media markets, show that companies that focus on social media advertising understand that video is the best place to spend their advertising dollars.

Uncertainty around COVID-19 Affects Small Business Ad Spend

Small businesses are looking at their finances as the coronavirus pandemic continues across the country.

In 2021, more than 25% of small businesses (26%) had spent less than $10,000 in advertising.

36 percent of small businesses, or nearly 40%, said the coronavirus pandemic had had a moderate effect on their business in 2021.

Aird stated that the emergence and popularity of Omicron and Delta variants have caused businesses to remain skeptical as they begin 2022. Many businesses are hesitant to increase their advertising budgets due to these variants. Instead, they choose to stay on the path that was laid out in 2021 and wait and see.

Our data showed that 25% of small businesses reduced their annual advertising spending in 2021.

Small businesses are now thinking more strategically about their advertising strategies in the face of uncertainty.

Advertising Budget Strategies for Small Businesses

• There is no universal rule that will guide budgeting. However, it is recommended that advertising should account for about 7%-10% of your company’s total revenue.

• Consider where your buyers and clients are. You wouldn’t want an advertising channel that isn’t visited by anyone.

• Find out where your competitors advertise to get a better idea of where your money is going.

• Establish goals. This will increase as you grow, but it is a good place to start. These goals can be lead generation, sales conversions, and so on. Whichever is most beneficial for your company.

• You can revise. It is obvious that the pandemic has affected small businesses across the globe, so there is no need to set aside an advertising budget.

As the world adjusts to the new norm, it is evident that small businesses are affected on all sides.

Print Advertising: Small businesses will spend less on advertising

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Lark Allen is a content marketing specialist at Drive Research. This market research firm blames accessibility.

Digital media is rapidly replacing print marketing services in Miami with advertising because it’s much more accessible. You can find new content with just a click or tap. Allen added that creating content for these platforms has become easier.

Today’s society has grown weary of snail mail and is more interested in channels that offer instant gratification and immediate access to information.

Silvana Massolo founded The Bloom Agency which is a social media agency that focuses on small businesses.

Massolo believes print advertising can be a great way to show your brand in a creative and lasting manner, but it’s a lot more guesswork when it comes to views and ROI.

Massolo stated that you could track the spending of your dollars when you run a digital or social media campaign. You also have control over who sees your ads.

Larger businesses are also being affected by the lack of transparency.

Our data showed that almost 40% of companies with more than 250 employees (36%) invest less in print advertising.

Print advertising is becoming more difficult to measure ROI and other metrics, so small businesses are looking for more lucrative options.

More than half of small businesses want to increase their social media presence

Social media can help small businesses get more exposure.

54 percent of small businesses want more social media advertising in 2022.

These emerging social media channels can be used to advertise this idea.

Small businesses advertise on Twitter (42%) and TikTok (31%), which are both social media channels small businesses use. This number will likely increase in the coming years.

Ashley Chambers, the marketing director of ASAP Cash offer, which is a resource for those looking to sell their home, shares that sentiment.

Chambers stated that emerging social media channels are more than just a platform for sharing information with your followers. It also allows users to create their content [through user-generated content and interaction] which is a better investment in your company’s future.

Twitter ads promise to connect businesses with their target audience and reach others through word-of-mouth.

CVS makes this Twitter advertisement to highlight the personalization of a pharmacy appointment.

CVS is all about saving you money, whether it’s coupons, discounts, or lower-cost options.

CVS Pharmacy (@cvspharmacy December 21, 2021

Striking visuals draw users to the post. Users can also interact with the commenters below the post.

Chris Nddie is co-owner and marketing manager at ClothingRIC. This site provides a shopping guide for frugal shoppers and offers tips on how to use TikTok, Instagram, and Twitter.

Nddie stated that these platforms allow 60-second videos, which many businesses would find restrictive. These users are likely to have a shorter attention span than others.

Nddie encourages businesses and other organizations to be more creative to combat the lack of attention or lack thereof with prospective buyers.

According to Leslie Gilmour (owner of Cube Digital), an SEO agency, TikTok is the future.

Gilmour stated that search engine algorithms will shift towards blog posts with short videos as TikTok grows. These short-form videos will eventually become the main focus of ‘how to’ searches.

TikTok advertising has been growing in popularity for companies that run ROI-focused campaigns.

All sizes and industries find ways to promote their content on Gen Z’s preferred platform.

Beauty brands such as Dermalogica are showing their products in an instructional video format, which works well for TikTok ads.

This is also a great avenue for brand marketing: short product videos which effectively educate audiences about how to use it, what’s in it, and other characteristics.

It doesn’t matter what advertising channel you choose, it is crucial to remember that it is an important part of your business.

There is no reason for you to reduce your advertising budget. Massolo stated that competition is fierce and that you need to think creatively about how you can stand out and still bring value to your target audience.

Advertisement for small businesses: The main business focus in 2022

The world adapts to digital channels and the unpredictable effects of the coronavirus pandemic. But one thing is certain: advertising is an essential component of any business’s success.

Businesses looking to improve their advertising strategies should experiment with creativity. This includes using newer channels and reorganizing your budget. Also, pay close attention to your target market.

In 2022, advertising for small businesses should be the foundation of all marketing plans.