Online Advertising: Newer companies spend more

Here on Online Social Media we often bring you posts about the use of social media marketing for business. Recently we told for example, of how in the U.K. at least, many brands are still reluctant to spend on social media. We’ve also reported though on how social media marketing costs real money and how to measure the success of social media marketing.

Now we’ve heard that a Directional Media Strategies conference that took place in Dallas recently looked into how different media markets spend their advertising money. An article by Carol Marie Cropper over on NetNewsCheck notes how it appears that younger businesses are less inclined to use traditional media and more likely to spend more money on online advertising than older businesses.

Senior vice president of BIA/Kelsey, Matt Booth, said that when looking at small to mid-sized businesses around 16% of firms under the age of 3 use Twitter but if looking at businesses up-and-running for 11 years or more then only 2% of them use Twitter. Other figures that told a similar story were, again looking at small to mid-sized companies, that those less than 3 years old planning a social media Web site totalled around 44%. However contrast that to businesses over 11 years old again and only 22% of those plan to build a Web site.

Around a third of the advertising budget for newer businesses is now spent on advertising online, whilst for older businesses only around 13% of the budget is spent on online advertising, according to founder of Yext, Howard Lerman. For more on this go to netnewscheck.com. Do you think it’s inevitable that younger businesses will spend more on online advertising? We’d be interested to hear your thoughts on this so please do send in any comments you have.

  • http://www.windshields.com Milner

    We are see more consumers using the likes of Yext than Yellowpages. Especially the newer companies who don't have the funds to take a position in the first couple of pages.