ANZ SMBs ramp up marketing efforts amid economic challenges

Small-to-medium businesses (SMBs) in Australia and New Zealand (ANZ) are significantly delaying their marketing activities, particularly their email marketing campaigns, as revealed by a 2024 study by Constant Contact.

The 'Small Business Now: The State of SMB Marketing' report by Constant Contact shows that despite recognising the need for increased marketing efforts, ANZ SMBs are grappling with an uncertain economic environment that is pushing many to boost their marketing in 2024. These businesses are more inclined than those in other surveyed countries to dedicate more time, increase budgets, and expand their marketing channels this year.

"Nearly 90% of small businesses across Australia and New Zealand are concerned about the current economic climate impacting their businesses negatively this year," stated Renee Chaplin, VP Asia Pacific for Constant Contact. "However, contrary to what might be expected, they plan to intensify their marketing efforts to navigate economic challenges."

The study, conducted in partnership with Ascend2, surveyed over 1,300 SMBs across ANZ, Canada, the UK, and the US, focusing on sales and marketing insights from decision-makers at companies with fewer than 250 employees.

While only 27% of ANZ SMBs expressed being "very concerned" about the economic impact on their businesses—the lowest level of concern among the regions polled—56% were "somewhat concerned". Combined, 83% of ANZ SMBs voiced some level of concern, just slightly behind the UK.

Chaplin noted, "This high level of concern is understandable given Australia's rising wages and recent interest rate hikes aimed at curbing inflation and reducing consumer spending. This economic backdrop likely contributes to their limited marketing expenditure this year."

Half of the respondents reported spending less than $15,000 annually on marketing, with 23% spending less than $1,500. Chaplin explained, "This minimal spending can become a self-perpetuating issue. Small business owners often lack the expertise and time for effective marketing, and economic pressures lead them to cut marketing budgets first."

Marketing tasks are frequently postponed by ANZ SMBs, with 13% always delaying marketing activities—the highest among surveyed regions—and 46% regularly doing so. Consequently, 59% of ANZ SMBs either always or regularly procrastinate on marketing, the highest rate among the regions polled.

ANZ SMBs also spend the least time on marketing daily, with 58% dedicating less than one hour per day, tied with Canada.

Chaplin highlighted, "Many local SMBs view marketing as a challenge due to a lack of expertise, which is why it often gets postponed."

Customer retention is a major concern for ANZ SMBs, with over a third citing it as their top business challenge in 2024. The study found that ANZ SMBs are most likely to use email marketing (59%) as their primary channel, followed by social media (58%). However, only a small percentage (17%) run multichannel campaigns consistently.

Despite the procrastination and lack of marketing knowledge, ANZ SMBs are proactively planning to enhance their marketing efforts. The report indicates that ANZ SMBs are most likely among surveyed regions to increase time spent on marketing (51%), marketing budgets (46%), and the number of marketing channels used (47%) in 2024.

Chaplin concluded, "The success of these increased budgets will depend on how effectively SMBs allocate them to the right channels. If done correctly, this could alleviate marketing challenges and help attract and retain customers, mitigating economic concerns."

This proactive approach suggests a potential shift in ANZ SMBs' marketing strategies, aiming for better results despite economic uncertainties.