The State of Small Business Marketing in 2025

Wouldn't you love to peek inside the marketing playbooks of other small businesses? Well, you're in luck! We've surveyed over 730 small business owners and marketers worldwide to bring you the hottest trends, biggest challenges, and smartest strategies for 2025. Buckle up, because this data-packed journey is about to revolutionize your marketing game! ?

Key Takeaways:

49% of small businesses plan to increase marketing budgets in 2025
Social media and search advertising are top priorities
AI adoption is high, with 60% of SMBs using it for marketing
Customer referrals remain the best source for new leads
Many businesses are missing key opportunities in search advertising and SEO

Who's Who in the Small Business World

Our survey captured a diverse slice of the small business pie:

Industries ranged from retail to professional services
74% of respondents were from the US or Canada
Business sizes varied, with many having 10 or fewer employees

Show Me the Money: Marketing Budgets

Here's the scoop on what small businesses are spending:

33% have a monthly marketing budget under $1,000
49% plan to increase their marketing budget in 2025
Only 16% expect to decrease their budget

? Hot Tip: Even with a small budget, you can make a big impact! Focus on high-ROI tactics like search advertising and social media marketing.

The Marketing Toolkit: What's Hot and What's Not

Top Channels Small Businesses Are Using:

Unpaid social media marketing (52%)
Social media ads (47%)
Search advertising (40%)

Surprisingly, only 40% are investing in search advertising. This could be your chance to outshine the competition!

Social Media Platforms Ruling the Roost:

Facebook (76%)
Instagram (63%)
LinkedIn (43%)

TikTok is gaining traction, with 34% of businesses using it. Are you missing out on this short-form video goldmine?

Satisfaction Guaranteed?

Search advertising topped the list for satisfaction, while organic social media and online listings left some businesses wanting more. Remember, it's all about finding the right mix for your unique business!

Trending Now: What's Catching Small Business Eyes

60% have tried short-form videos (Think TikTok and Instagram Reels)
Nearly 50% have dipped their toes into influencer marketing
Webinars, flip books, and giveaways are also on the radar

? Action Item: Don't be afraid to experiment with new trends. Your next big marketing win could be just a TikTok dance away!

The Customer Acquisition Game

Word of mouth still reigns supreme:

65% say customer referrals are their best source of new leads
This jumps to 75% for businesses with 10 or fewer employees

Digital marketing and online advertising are close behind, especially for larger small businesses.

Metrics That Matter

Return on investment (ROI) is king, with 60% of businesses rating it as "very important." Sales, revenue, and conversion rates are also top priorities.

Challenges on the Horizon

What's keeping small business owners up at night?

Economic uncertainty (48% say it's somewhat or very challenging)
Getting new leads and customers (45%)
Maximizing marketing budget (especially for businesses with smaller budgets)

The AI Revolution is Here

Hold onto your hats, because AI is taking small business marketing by storm:

60% of small businesses are already using AI in their marketing
52% use it for content creation
39% leverage AI for social media management
34% are employing AI chatbots

Why the AI love? 61% say it saves time, and 50% use it for idea generation.

? Pro Tip: Embrace AI tools to streamline your marketing efforts, but always add that human touch to keep your brand authentic! A great tool to use is Rubi.

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The Partnership Puzzle

60% of small businesses are working with at least one marketing partner, and 73% of those are juggling multiple partnerships. When choosing a partner, businesses prioritize:

The right products or services
Competitive pricing
Proven results

Missed Opportunities and Golden Chances

Here's where small businesses might be leaving money on the table:

60% aren't investing in search advertising
61% are missing out on SEO
Many are overlooking brand awareness tactics like display advertising and online listings

? Opportunity Knocks: These gaps could be your chance to shine! Consider investing in these underutilized channels to stand out from the crowd. Dominating your local market will help drive more sales.

Your 2025 Marketing Launchpad

As we rocket towards 2025, keep these strategies in mind:

Diversify your marketing mix – don't put all your eggs in one social media basket
Embrace AI, but keep it human – use technology to enhance, not replace, your unique brand voice
Focus on ROI – track your metrics and double down on what works
Don't neglect search – it's a goldmine for businesses willing to invest
Keep experimenting – today's trend could be tomorrow's game-changer

Remember, in the ever-evolving world of small business marketing, the only constant is change. Stay agile, stay curious, and most importantly, stay true to your brand's unique story.

Frequently Asked Questions

Q1: How much should a small business spend on marketing?

A: There's no one-size-fits-all answer, but our survey shows that 33% of small businesses spend under $1,000 per month on marketing. The right budget depends on your industry, goals, and revenue. A common rule of thumb is to allocate 7-8% of your gross revenue for marketing if you're earning less than $5 million annually and want to maintain your current position.

Q2: Is social media marketing still effective for small businesses in 2025?

A: Absolutely! Our survey shows that 52% of small businesses use unpaid social media marketing, and 47% use social media ads. It remains a cost-effective way to reach and engage with your audience. However, the key is to choose the right platforms for your target market and to create engaging, valuable content consistently. Our Motto: "Post Twice A Day Or Customers Will Not Come Your Way"

Q3: How can I get started with AI in my marketing efforts?

A: Start small and focus on areas where AI can save you time or enhance your efforts. Consider using AI tools for:

Content creation (like blog post outlines or social media captions)
Customer service chatbots
Data analysis and reporting
Email subject line optimization
Ad targeting and optimization

Remember to always review and personalize AI-generated content to maintain your brand voice. As mentioned Rubi is a great AI tool that has prebuilt modules so you do not have to be a prompt engineer, plus you can tailor your content to your audience.

Q4: What's the best way to measure marketing ROI for a small business?

A: The best metrics depend on your specific goals, but some key performance indicators (KPIs) to consider include:

Conversion rate
Cost per lead
Customer acquisition cost
Lifetime customer value
Website traffic and engagement
Social media engagement and growth
Email open and click-through rates

Use tools like Google Analytics, social media insights, and your CRM to track these metrics regularly.

Q5: Should I hire a marketing agency or keep my marketing in-house?

A: This decision depends on your budget, expertise, and time constraints. Our survey shows that 60% of small businesses work with at least one marketing partner. Consider outsourcing if:

You lack in-house expertise in crucial areas like SEO or PPC
Your team is stretched thin and marketing efforts are inconsistent
You need to scale your marketing quickly
You want access to specialized tools and technologies

However, if you have a tight budget and a good understanding of your market, keeping marketing in-house might be more cost-effective. You can always start with a hybrid approach, outsourcing specific tasks while managing others internally.

Are you ready to make 2025 your best marketing year yet? The future is bright, and it's time to shine! ?

I hope you enjoy reading this blog post. If you want my team to just do your marketing for you, click here.

Small Business Marketing Trends 2025: What You Need to Know ?