On day one of the BIA/Kelsey Marketplaces 2010 conference, Steve Marshall (Director of research at BIA/Kelsey) shared highlights from two studies they’ve been doing regularly for years, the Local Commerce Monitor and the User View.
First, the Q3 2009 Local Commerce Monitor. The survey measures where small and medium sized businesses (SMBs) are spending their advertising and promotional budgets and how their media usage and spending habits are evolving
- Penetration of online media (77%) exceeds Traditional Media (69%) for the first time in Q3. That’s the percentage of SMBs using each type of media to promote themselves.
- Newer businesses much more oriented to online media. For businesses created less than 3 years ago, 30% of their budget is dedicated to online. Overall average is 21.8%.
- 32% of businesses plan to use social media and blogs to promote themselves in the next 12 months.
Second, the February 2010 User View. The survey focuses on how U.S. consumers are evolving their use of traditional and online information sources to find and locate local serving businesses.
- BIA/Kelsey is seeing more and more fragmentation in local shopping. Consumers say they used 7.9 different sources to for local shopping information in the last year. That’s up from 5.6 in 2007.
- 82% use Internet as Primary or Secondary source for product purchases smaller than $500
- 45% use Internet to research non-routine purchases before buying
- 27% completed most recent product purchase bigger than $500 online
- Membership in social networks continues to explode: 67% are on Facebook, 30% on MySpace, 20% on Twitter and 14% on LinkedIn. Two years ago, only 16% were on Facebook and Twitter didn’t exist!