Report: SMBs Expected to Spend More Online

Local advertising spending by small-to-medium U.S. businesses will grow by almost 34 percent from 2008 to 2013, and nearly 70 percent of their interactive ad budgets will go toward paid search and video, according to a new report from Borrell Associates, "Main Street Goes Interactive."

The report says there will be a nearly 275 percent increase in SMB spending on streaming audio and video, almost 140 percent increase on e-mail and direct ad formats, nearly 35 percent increase in paid search spending, and an 8 percent increase in standard display ads, reports ClickZ News.

Some SMBs, particularly real estate firms and computer-service stores, are spending between 30 percent and 45 percent of their advertising budgets on Web advertising, according to Borrell Associates CEO Gordon Borrell. However, the typical SMB is spending only about 11 percent. "Still, this 11 percent was just 4 percent a few years ago, so they're adjusting the dials," Borrell told ClickZ.

About the author

Kevin Newcomb joined ClickZ in August 2004, covering search marketing and other online marketing topics. He has been reporting on web-based businesses since 2000.

Before the bubble burst, Kevin was a marketing manager for an online computer reseller, handling copywriting, e-mail marketing, search marketing and running the affiliate program.

With a combination of real-world marketing experience and years of business journalism, Kevin brings to ClickZ a unique ability to deliver news and training materials that help online marketers do their jobs better.