Small businesses are shifting their advertising money away from traditional media to online, according to experts.

Although small and medium-sized businesses (SMBs) are not upping their total marketing spend, they are focusing more of their budgets on e-marketing.

The Yankee Group estimates that online marketing and advertising spending by SMBs will soar from $1.3 billion in 2005 to $9.3 billion in 2010 – and that’s just in the US.

Meanwhile, Emily Riley, an analyst at Jupiter Research, said that SMBs with less than $15 million in revenues spend slightly more of their advertising budgets on online media compared to larger businesses.

In addition, one in five of firms that earn between $1 million and $15 million spend more than 60 per cent of their marketing budget online.

“The reason most often given for going online is the ability to geotarget advertising, to only show their advertising within a designated region,” Ms Riley said, as reported by techtarget.com.

Small businesses, she added, have an enhanced understanding of the value of local sponsored searches and classified advertising online.
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