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September 06.2025
2 Minutes Read

Small Businesses Boost Marketing Efforts: Why Confidence Is Plummeting

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Small Businesses Face Marketing Challenges Despite Increased Efforts

Small business owners are increasingly investing in marketing strategies, yet recent reports reveal a troubling decline in their confidence regarding the effectiveness of these efforts. According to Constant Contact's 2025 Small Business Now report, a mere 18% of small and mid-sized businesses (SMBs) feel "very confident" in their marketing results—down from 27% just a year prior. This significant drop highlights a disconnect between heightened marketing investments and tangible outcomes.

The Shift Back to Proven Marketing Channels

Despite their uncertainties, SMBs are gravitating back to traditional marketing channels. Notably, 44% of businesses cited email as their most effective marketing channel, a sizeable increase from 23% the previous year. This shift signifies a movement towards familiar strategies, even amidst the escalating use of new technologies like artificial intelligence and video marketing.

Impact of Technology on Marketing Strategies

Nearly half of SMBs are now leveraging AI to enhance their marketing efforts, particularly in crafting email communications and analyzing customer data. Those employing AI report significant improvements in email marketing and social media engagement. Meanwhile, the integration of video content is soaring, with 78% of businesses implementing this medium. However, the reliance on AI introduces challenges related to data privacy and brand integrity that many owners are wary of.

Economic Pressures Complicate Marketing Efforts

Economic uncertainties further complicate the marketing landscape for SMBs. The report highlights that 44% of businesses cite rising goods costs as their chief concern, prompting many to increase prices. In markets like Canada, these economic pressures have led to observable shifts in operational strategies, indicating that market dynamics can vary significantly across regions.

What Lies Ahead for Small Business Marketing

As the global landscape shifts, the importance of effective marketing strategies cannot be overstated. SMBs must adapt to the evolving market environment by leveraging the power of email, integrating engaging video content, and maintaining awareness of economic influences. Ultimately, despite the current challenges, there lies significant potential for growth by harnessing these effective marketing avenues.

For business lenders, banks, and credit providers, understanding these insights can help tailor offerings that meet the unique challenges and needs of SMBs striving for effective marketing outcomes.

Marketing & Growth Strategies

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