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Small, midsize businesses spend more than half of ad budget online, plan further increases

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Aug. 7 Cambridge, Mass.—More than half (52%) of small and midsize businesses' advertising budgets are being allocated online, according to online ad network DirectoryM in survey results published Monday. In addition, 37% plan to increase online ad spending in 2006.

Despite the increased online budgets, 95% of SMBs said they still managed their own online ad campaigns. Seventy-nine percent of SMBs said their measure of success is the number of leads received, while 53% said customer acquisition or dollar amount of business closed is their success indicator.

The study, which polled 128 small and midsize businesses that advertise on DirectoryM's network, also revealed close to two-thirds (62%) of respondents are optimizing their Web sites for search engines.

—Carol Krol

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