We surveyed 1,400 consumers, small business owners, and marketers to gain insights into the marketing strategies driving success for small businesses in 2024.
We recently surveyed 1,400 consumers, small business owners, and marketers to gain insights into the marketing strategies driving success for small businesses in 2024 and to identify the most effective marketing approaches for reaching and engaging consumers.
Whether you’re a small business owner looking to refine your marketing tactics or a marketer seeking the latest industry insights, this report offers valuable perspectives and actionable strategies to help you thrive in 2024’s fast-paced market.
Digital marketing channels continue to dominate as the key drivers of growth. Small business owners say their five most influential marketing channels are their websites, Facebook, review sites (e.g. Google Business), TikTok, and Instagram.
44% identified their website as the most influential marketing channel, underscoring the importance of a strong online presence.
Facebook follows closely at 38%, highlighting its enduring appeal for business engagement and customer interaction.
TikTok is listed as the fourth most important marketing channel for small businesses aiming to reach broader, younger audiences. This is particularly notable given the ongoing discussions around a potential nationwide TikTok ban, which could impact small businesses that heavily rely on the platform for its extensive reach and influencer endorsements.
Certain digital marketing channels are underused by small businesses. Despite the potential of search engine marketing (SEM) to drive targeted traffic, only 28% of small businesses are currently using this channel.
Similarly, just 23% are leveraging a blog to engage audiences and boost their content marketing efforts, missing out on opportunities to build authority and connect with customers.
Finally, while most businesses cite their website as their most influential marketing tool, only 17% of small businesses use search engine optimization (SEO) to improve their online visibility; thus, many aren’t fully harnessing the benefits of organic search, which could lead to increased web traffic and higher conversion rates.
Small business owners say their three most influential marketing tactics are reviews (e.g., Google reviews), word-of-mouth referrals, and influencers/endorsements.
Reviews (e.g. on Google, Facebook, Amazon, etc.) are the most influential marketing tactic for small business owners, yet only 43.5% of businesses actively seek to influence these reviews. This gap presents a substantial growth opportunity for small businesses. By proactively managing and encouraging customer reviews, small businesses can enhance their online reputation, build trust, and attract new customers.
📖 Recommended reading: How to ask customers for reviews: 11 tactics with real-life examples
Influencers/endorsements are the third-most influential marketing tactic. On TikTok, collaborating with influencers who match the brand’s values can generate engaging, viral content that appeals to a younger audience, boosting visibility and brand awareness.
Similarly, Instagram provides a robust platform for influencer partnerships through short-form video content like Stories, IGTV, and Reels, which can enhance real-time engagement and capitalize on trending content. Small businesses can tap into established follower bases by partnering with influencers on these platforms, significantly extending their reach.
The size of the marketing team within small businesses plays a crucial role in marketing success. Most small businesses surveyed have three to five marketing employees. Those with larger marketing teams exhibit significantly higher confidence in achieving a positive return on investment (ROI).
A notable 75% of businesses with 10 or more marketing employees are confident in their positive marketing ROI, in stark contrast to only 30% of businesses with a single marketing employee and a mere 6% of those without any dedicated marketing staff.
When it comes to keeping marketing in-house or external, small businesses are adopting a hybrid approach.
Most small businesses (42%) blend in-house marketing efforts with external professional services (e.g., agencies). This mixed strategy is proving highly effective, as businesses employing both methods are 2.5 times more likely to report marketing success compared to those relying solely on in-house teams. Small businesses can drive better results by leveraging the strengths of internal expertise alongside the specialized skills of third-party professionals.
Most small businesses (35%) rate their online presence as excellent, 31% as good, and 19% as average. Small businesses with an excellent online presence are significantly more confident in their marketing ROI, with 56% expressing high confidence compared to just 1% of those with a poor online presence.
The correlation between a strong online presence and sales impact is equally compelling.
57% of small businesses with an excellent online presence say that their marketing efforts have a very significant impact on sales. Only 2% of small businesses with a poor online presence share this sentiment.
The three most common ways small businesses are using local marketing is through social media to engage their local communities, participating in community events, sponsorships, and networking with local businesses and influencers. Despite these efforts, only 19% are using local SEO and Google My Business to enhance their local visibility.
This presents a significant opportunity for improvement. By optimizing local search strategies and managing Google My Business profiles, small businesses can greatly enhance their discoverability and attract more local customers.
The majority of small businesses (44%) allocate 6-10% of their overall budget to marketing. What’s more, the correlation between higher marketing investment and better outcomes is clear. 48% of small businesses that dedicate 6-10% of their overall budget to marketing report success in their efforts. In contrast, only 11% of small businesses that spend less than 5% of their budget on marketing achieve similar results.
Looking ahead, 63% of small businesses plan to increase their marketing budgets over the next year, with technology, human resources, and finance sectors leading this trend. A striking 80% of businesses in both the technology and human resources sectors, along with 76% in finance, are gearing up to boost their marketing expenditures over the next 12 months.
75% of small businesses have a marketing plan, while 25% do not. Having a structured plan significantly boosts success rates. Small businesses with a marketing plan are 6.7 times more likely to report marketing success than those without a plan.
Specifically, 87% of small businesses with a marketing plan report successful marketing outcomes, in stark contrast to the mere 13% success rate among those without a plan. This data underscores the critical importance of strategic planning in marketing, highlighting how a well-defined roadmap can enhance a small business’s ability to achieve its goals and drive growth.
A good marketing plan usually includes clear objectives, a detailed analysis of the target market, competitive research, and a mix of marketing tactics tailored to the business’s unique strengths. It also outlines specific strategies for digital and traditional marketing channels, a content calendar, budget allocations, and metrics for measuring success.
In today’s customer-centric market, the integration of customer feedback into marketing strategies is proving to be a game-changer for small businesses. 75% of small businesses incorporate customer feedback into their marketing strategy either always or frequently.
This practice is not just beneficial; it’s a clear differentiator in driving marketing success. 49% of small businesses that consistently integrate customer feedback into their marketing strategies report achieving marketing success. This contrasts sharply with the mere 1% success rate among businesses that neglect to incorporate customer feedback. These findings highlight the powerful impact of listening to customers.
Small businesses can collect customer feedback through online surveys, social media polls, and direct customer interviews. Using feedback forms on websites and review platforms can also provide valuable insights to refine marketing strategies.
According to business owners, the biggest small business marketing trends in 2024 will be AI and machine learning, social commerce, ethical marketing/sustainability, and short-form video content.
AI can help small businesses analyze data, personalize customer experiences, and optimize marketing campaigns. Our survey found that over half of small businesses (59%) are incorporating AI into their marketing strategy. What’s more, small businesses that incorporate AI into their marketing strategy are 5.7 times more likely to report greater marketing success compared to those that do not.
Social commerce allows small businesses to turn social media engagement into seamless shopping experiences, boosting sales directly on platforms like Instagram, Facebook, and TikTok. Additionally, there is a growing emphasis on ethical marketing and sustainability, as businesses recognize the importance of aligning with consumer values around environmental and social responsibility.
The most common marketing challenges for small businesses are limited budget, time constraints, and finding the right marketing channels. These hurdles are especially pronounced for small business owners, who often juggle multiple roles and responsibilities, making efficient time management critical yet challenging.
Budget limitations further compound these difficulties, restricting the ability to invest in marketing strategies and cutting-edge tools that larger competitors might easily afford. Additionally, small business owners must continually adapt and identify the most effective marketing channels, a task that can be both time-consuming and complex.
72% of consumers prefer to buy products from small businesses over larger enterprises. The largest share of consumers (48%) shop with small businesses monthly, followed by 28% who shop with them weekly. These figures underscore a growing loyalty and preference for the personalized touch and unique offerings that small businesses provide.
When we look at specific demographics, men surprisingly shop with small businesses more frequently than women. Further, Gen Xers and millennials lead the charge, shopping with small businesses more frequently than both Gen Zers and baby boomers. This could reflect a combination of economic values, a desire for unique products, and a greater emphasis on supporting local economies that resonate more strongly with these generations.
Overall, the largest share of consumers (38%) discover new small businesses by word of mouth, followed by 31% of consumers who discover new small businesses on social media.
Gen Zers are most likely to find new small businesses to shop with through social media platforms like TikTok and Instagram, whereas other generations primarily rely on word-of-mouth referrals.
44% of consumers have intentionally increased their shopping at small businesses in the past year. Consumers cite product uniqueness, support for local economies, and convenient locations as the top three factors influencing their decision to shop at small businesses. Unlike the mass-produced items found in large retail chains, small businesses often provide one-of-a-kind products that resonate with consumers’ desires for individuality and distinctiveness.
What’s more, there’s a growing awareness of the positive impact that shopping locally can have on communities, from creating jobs to fostering economic resilience. This sense of local pride and community support is compelling more consumers to choose small businesses, seeing their purchases as investments in their own neighborhoods.
Consumers prioritize product quality significantly higher than price when shopping at small businesses. A substantial 50% of customers cite product quality as their primary concern, overshadowing the 28% who focus on price and the 9% who value customer service most. Customers often associate small businesses with a higher level of care and authenticity in their offerings, leading to a greater willingness to pay a premium for products that stand out in terms of durability and design.
Understanding consumer communication preferences is crucial for small business marketers. The majority of consumers (38%) prefer receiving marketing communications from small businesses through email, while 34% favor social media as their preferred channel.
A generational divide is evident in these preferences. Gen Zers, known for their digital savviness, overwhelmingly favor social media platforms for marketing interactions with small businesses, whereas older generations lean towards the more traditional channel of email. Notably, Facebook, Instagram, YouTube, and TikTok have emerged as the top four social platforms where consumers are most receptive to marketing messages from small businesses.
What consumers of all ages can agree on is that small businesses need to have a strong online presence. 64% of consumers across the board say it’s either important or very important that small businesses have a strong online presence to attract and retain customers.
Consumers overwhelmingly indicated that they are most likely to engage with marketing messages from small businesses that feature discounts and promotions (81%). This strong preference underscores the universal appeal of savings and special offers, effectively capturing consumer attention and driving engagement.
Following this, 40.7% of consumers are drawn to new product announcements, while 37.1% are interested in customer testimonials and stories, which add a personal touch and build trust. These insights suggest that a multi-faceted marketing approach, balancing promotional content with informative and engaging narratives, can resonate with a broad audience.
Consumers are most likely to support small businesses in the food and beverage industry (81.3%) –– e.g., local restaurants, coffee shops, and specialty food stores. This preference highlights the strong community connection and daily necessity of these establishments, making them a top choice for local support. Following closely are local retail stores (60.5%) for clothing or accessories, and services (59.3%) –– e.g., vets, cleaning, plumbing, repair, tailoring, and landscaping, among others.
54% of consumers have left a review for a small business online at least once in their lifetime, and 64% of consumers say that online reviews impacted their decision to support small businesses in the past year. In an increasingly digital marketplace, positive reviews on Google, Facebook, Yelp, and other platforms can significantly enhance a small business’s reputation and attract a wider customer base.
While AI is revolutionizing various industries, only 27% of consumers say they’re more likely to shop from small businesses that use AI in their operations (73% are not). This suggests that balancing technological advancements with human-centric experiences could be key for small businesses to enhance their appeal.
Survey insights reveal that most consumers (39%) are more inclined to support small businesses using AI to streamline checkout processes and bolster payment security, underscoring the value placed on efficiency and safety.
Additionally, 33% appreciate AI’s ability to personalize their shopping experience, while AI-driven scheduling for appointments and reservations appeals to 28% of consumers.
Despite the advantages of AI, consumers express notable reservations about its integration into small businesses. Privacy concerns top the list, with 47% worried about data usage by AI systems.
Further, 45% are hesitant if AI adoption leads to higher product or service prices, while 44% are concerned about AI replacing human jobs. These insights highlight the importance of addressing privacy, cost, and personalization to alleviate consumer apprehensions regarding AI technology in small businesses.
Small business marketing in 2024 is defined by a blend of digital engagement, technological innovation, and consumer-centric strategies. The study shows that having a strong online presence is non-negotiable, with websites, review platforms, and social media giants like Facebook, TikTok, and Instagram leading the way. To stay ahead, small businesses should tap into underused channels like search engine marketing and SEO to boost their online game.
Consumers are craving unique products and personalized experiences, putting quality over everything else. AI offers a big win for enhancing efficiency and personalization, but businesses need to tackle concerns about privacy, costs, and job impacts head-on.
The secret sauce for 2024? Blend tech-savvy strategies with the authentic, community-focused charm that small businesses are known for.
The statistics in this report are derived from two separate surveys. We surveyed 1,000 U.S. consumers across a range of demographics and geographic regions, and 400 U.S. small business owners and marketing managers across a range of industries from March 12th to 14th, 2024.
Nathan is the head of content and SEO at SimpleTexting. With the help of an awesome team, he’s attracted more than 65 million website visitors, converted 10 million email subscribers, and supported 300,000 software users. He's written for the likes of Fast Company and his work has been referenced in publications like Forbes. Nathan has 15 years of proven corporate and startup marketing experience and continues to venture off the beaten path. When he’s not marketing, you’ll catch Nathan canoeing in the Boundary Waters or training for his next ultra marathon. Connect with Nathan on LinkedIn.
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