Local advertisers aren’t pulling back despite mounting economic concerns. Borrell Associates says most businesses expect marketing budgets to remain steady.
What We Know: Borrell Associates surveyed 149 small and medium-sized businesses between June 9 and June 26 and found advertising remains a priority for many local advertisers. According to the quarterly Business Barometer, 62% expect to spend about the same on advertising and marketing during the next six months. Another 15% plan to increase spending. As a result, 77% expect to maintain or grow their marketing investment during the second half of the year. Economic confidence, however, continues to weaken. Nearly one-third of respondents described the current environment for sustaining a small business as poor, up from 21% during the first quarter. Meanwhile, two-thirds said it’s become harder to operate a small business over the past six months.
What They Said: “The proportions expecting to spend more or spend less on ad budgets has not shown major fluctuations over the past two years.” -Borrell Associates CEO Gordon Borrell
What Remains Unclear: It’s still uncertain whether worsening economic conditions will eventually force businesses to reduce advertising budgets. While 37% of respondents expect conditions to deteriorate during the next six months, only 16% anticipate improvement. Another 46% believe business conditions will remain about the same.
What It Means: The latest findings suggest advertising has become a more resilient business expense than many expected. Even as owners grow less optimistic about the economy, many continue to view marketing as essential to maintaining customers and generating revenue. Consequently, local media companies could benefit if businesses follow through on their spending plans. However, the data also indicates that confidence remains fragile, meaning future economic changes could still influence advertising decisions later this year.
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Garrett Searight is Barrett Media’s News Editor, which includes writing daily news stories, features, and opinion columns. He joined Barrett Media in 2022 after a decade leading several radio brands in several formats, as well as a 5-year stint working in local television. In addition to his work with Barrett Media, he is a radio and TV play-by-play broadcaster. Reach out to him at Garrett@BarrettMedia.com.