BIA/Kelsey Reports U.K. Small Businesses Allocate Nearly One-Third of Marketing Budget to Online Media

CHANTILLY, Virginia, November 1, 2011 -

New Local Commerce Monitor U.K. study reveals U.K. SMEs spent an average of 1,406 pounds Sterling during the past 12 months on advertising and promotion

Small and medium-sized enterprises in the United Kingdom spent an average of 1,406 pounds Sterling to advertise and market their businesses during the past 12 months, according to the first wave of Local Commerce Monitor U.K. (LCM: U.K.) (www.biakelsey.com/LCM-UK/), a new study by local media research firm BIA/Kelsey. Respondents to the online survey reported spending 30.3 percent of their total advertising and promotion budget on online media.

(Logo:  photos.prnewswire.com/prnh/20110616/NE20926LOGO )

“In general, we found that usage of new media - various online formats, including social - between the U.S. and U.K. is a mixed picture,” said Steve Marshall, director of research and consulting, BIA/Kelsey. “For instance, U.K. SMEs use more online classified directories, but less email marketing. In addition, key traditional media, such as classified directories, newspapers and magazines are used much more by U.K. SMEs than those in the U.S.”

U.K. SMEs use a wide variety of traditional and digital media for marketing their businesses. Survey respondents report using  the following media “to advertise or promote their business:

• Facebook: 35.1 percent
• Email: 33.4 percent
• Online classified directories: 33.1 percent
• Print classified directories: 32.1 percent
• Local newspapers or local magazines: 31.5 percent
• Twitter: 18.2 percent
• Pay-per-click (PPC): 13 percent

Compared with the U.S., U.K. SMEs use less broadcast and social media advertising. Few U.K. SMEs use broadcasting to advertise their businesses, with the highest usage of a broadcast medium at 5.2 percent for radio. Mobile advertising is still in its infancy, with no single mobile ad format registering greater than a 5 percent usage level.

“As the globe shrinks due to digital media, it’s critical for BIA/Kelsey to continue to enhance our already strong global view of the local search space,” said Neal Polachek, president, BIA/Kelsey. “This new survey extends our local media coverage and offers our clients valuable insights into the U.K. advertising market. This first wave of LCM: U.K. will provide a baseline against which we can measure trends and developments going forward.”

This survey is based on BIA/Kelsey’s ongoing Local Commerce Monitor survey series conducted online annually in the U.S. for more than 10 years with research partner ConStat. The complete LCM: U.K. survey report containing more than 75 data charts is available for purchase. Visit www.biakelsey.com/LCM-UK to more information about this report, view the table of contents and download the executive summary.

About Local Commerce Monitor and LCM: U.K.

Local Commerce Monitor (LCM) is BIA/Kelsey’s annual tracking survey of small and medium-sized businesses (referred to in the U.K. as small and medium-sized enterprises, or SMEs), conducted online with research partner ConStat since 1999. The survey measures where SMBs are spending their advertising and promotional budgets and how their media usage and spending habits are evolving.

Local Commerce Monitor U.K. (LCM: U.K.) is a new survey by BIA/Kelsey. The data from this first wave of LCM: U.K. provide a granular snapshot of current media usage, behaviors and conditions in the United Kingdom. The survey was conducted online in February 2011. The sample consisted of 308 small businesses in the U.K., drawn from a cross-section of the U.K., so as not to be dominated by the greater London area. The sample also included a substantial number of “solo” businesses, with 43 percent of respondents reporting just one full-time employee in their business (including themselves).

About BIA/Kelsey

BIA/Kelsey advises companies in the local media space through consulting and valuation services, research, Continuous Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at www.biakelsey.com, on the company’s Local Media Watch blog, Twitter (twitter.com/BIAKelsey) and Facebook (www.facebook.com/biakelsey).

Eileen Pacheco, +1-508-888-7478, eileen at tango-group.com