While companies with over 5,000 employees account for the majority of the $390 billion market for online marketing services, small businesses are certainly spending their share.

A recent report called “What SMBs Spend on Digital Marketing Services” from media research firm Borrell Associates reveals this and other key data about spending and priorities of small business web marketing.

How much is spent on small business web marketing?

According to the report, small and medium-sized business spend $17,000 annually on web marketing services, and are spending $6,800 annually for online advertising (paid search, display ads).

  • Website maintenance (including website design) accounts for about half (52%) of all spending
  • Online public relations accounts for 12% of spending
  • Online marketing support is 11.3% of spending
  • Online ad production and online consulting/research each account for about 12% of spending

The spending gap

Businesses with less than 50 employees aren't spending nearly as much on web marketing services as companies with more than 50 employees, creating a competitive gap.

Business size 2012 annual marketing spend
Under 50 employees Less than $500
Spent on web hosting and email list management
More than 50 employees $63,000 a year
Spent on services like SEO, video production, social media and online PR

Opportunities exist for businesses with under 50 employees to separate themselves from similarly-sized competitors by spending more on their website.

Have you allocated part of your marketing budget to growing your web presence? If so, what activities are you planning? Please share some in the comments below.
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