The UK’s small and medium-sized businesses have had confirmed what their freelance PR and Marketing consultants have always told them – it really does pay dividends to advertise.
In fact, boosting their comparatively small investment in advertising would help SMEs create jobs and growth, demand for new products and, if they are inclined, more exports.
Such are the findings in a report from Deloitte, which says despite currently representing 40% of UK turnover, SMEs are behind just 18% of the UK’s total advertising spend.
“Advertising pays, no matter the size of the business,” said Tim Lefroy, the chief executive of the Advertising Association, which commissioned the report.
“There are sharp lessons here for entrepreneurs, policymakers and crucially for advertising itself… [because] the analysis confirmed [that] SMEs that invest in advertising are much more likely to achieve growth.”
Interestingly for freelancers whose SME clients are in doubt about the need to invest in ads, such independent PR & Marketing workers can point to their own businesses as a case in point.
That’s because, according to the report, almost two-thirds of ‘micro businesses’ – which includes one-person freelance consultancies – reported a direct lift in sales once they advertised.
And smaller firms that agree to invest in advertising can outpace their larger counterparts, as the report found that every £1 spent on SME advertising had eight times the relative impact on growth as £1 spent on advertising for bigger firms.