In an assessment of advertising placed on social networking sites, I was surprised to find that nearly 20% of all ad spending is by local businesses. In general, there is an assumption going into this research was that commercials on social networks were almost purely national but a recent research proved it wrong where local small businesses are heavy advertisers on the social networks. According to an estimate, local advertisers account for about $641 million of nearly $3.3 billion this year trying to reach consumers via social networking sites.

In the scheme of things, it’s still a drop in the bucket. The total is less than 3% of all locally spent online advertising. In an estimate for individual local markets, it would equate to a few hundred thousand dollars or less in most markets.  But it is expected that there is a growing trend among small buisnesses to spend more on social networks over other internet marketing options and the much expensive traditional media like print and television.

The growth in small buisness advertsment on social network is due to its cost effectiveness and larger reach to the select target group ie younger audience, as this target group tends to spend more than any other TG. ZaaBiz encourages all its members who run small to medium size buisnesses to advertise on our buisness networking platform as it is cost-effective and has good reach.