New Report Highlights High Churn Rates Among SMB Advertisers Working with Media Partners
In a recent report published by vcita titled "The SMB Advertiser Report for Media & Publishing Companies (2025)", it was discovered that small and mid-sized businesses (SMBs) are increasingly finding it difficult to maintain long-term partnerships with media and publishing companies. The survey, which included 500 SMB owners from the United States, indicated that a staggering 41% of these advertisers drop out within the first one to two years of collaboration, with nearly half abandoning their media partners in less than a year. The predominant reason cited for this turnover is the high costs associated with services that often yield limited results.
The landscape for local advertising has been shifting as SMBs continue to depend on local publishers for their credibility and local reach. However, the findings from the report suggest that despite this reliance, many SMBs are dissatisfied with the performance of their media partners.
The data further reveals that although 74% of SMBs are currently collaborating with a media or publishing company, a considerable portion of these businesses are seeking more value from their partnerships. Specifically, the survey highlights that 46% of respondents are purchasing website services, 35% are investing in advertising space, and 34% are engaging in paid social media advertising. Interestingly, there is a growing appetite for additional services, with 48% of SMBs wanting publishers to offer tools for payment collection, while 30% expressed interest in small business consulting services, and approximately 29.6% would be inclined to invest in AI-driven business tools if these were made available through their media partners.
Liat Zohar, the Chief Marketing Officer at vcita, emphasized the trust that local publishers have built with their SMB partners. However, she also pointed out that this trust alone is not enough to ensure continued growth and sustainability in these partnerships. Businesses are increasingly demanding more measurable returns on their investments and tools that can streamline their operations. To remain competitive and deemed essential by SMBs, media companies must adjust their offerings to include these elements.
The report sees 2025 as a critical year for the media industry, underscoring the necessity for publishers to diversify their revenue streams and enhance the value they provide through technology-enabled services. As the rise of AI and self-service ad platforms continues to reduce the barriers for SMB advertisers to enter the marketing space, traditional media companies need to adapt to prevent losing their stronghold in local advertising.
In conclusion, the vcita report sheds light on the challenges and opportunities facing local advertisers. For SMBs, the path ahead involves navigating partnerships that offer not only credibility but also measurable success. The onus is now on media companies to respond to the evolving demands of their SMB clients and position themselves as integral partners that contribute to their growth, rather than simply providers of advertising space. As the market dynamics shift, the future of advertising could hinge on how effectively these media partnerships can evolve in response to the needs of small and mid-sized businesses.
The landscape for local advertising has been shifting as SMBs continue to depend on local publishers for their credibility and local reach. However, the findings from the report suggest that despite this reliance, many SMBs are dissatisfied with the performance of their media partners.
The data further reveals that although 74% of SMBs are currently collaborating with a media or publishing company, a considerable portion of these businesses are seeking more value from their partnerships. Specifically, the survey highlights that 46% of respondents are purchasing website services, 35% are investing in advertising space, and 34% are engaging in paid social media advertising. Interestingly, there is a growing appetite for additional services, with 48% of SMBs wanting publishers to offer tools for payment collection, while 30% expressed interest in small business consulting services, and approximately 29.6% would be inclined to invest in AI-driven business tools if these were made available through their media partners.
Liat Zohar, the Chief Marketing Officer at vcita, emphasized the trust that local publishers have built with their SMB partners. However, she also pointed out that this trust alone is not enough to ensure continued growth and sustainability in these partnerships. Businesses are increasingly demanding more measurable returns on their investments and tools that can streamline their operations. To remain competitive and deemed essential by SMBs, media companies must adjust their offerings to include these elements.
The report sees 2025 as a critical year for the media industry, underscoring the necessity for publishers to diversify their revenue streams and enhance the value they provide through technology-enabled services. As the rise of AI and self-service ad platforms continues to reduce the barriers for SMB advertisers to enter the marketing space, traditional media companies need to adapt to prevent losing their stronghold in local advertising.
In conclusion, the vcita report sheds light on the challenges and opportunities facing local advertisers. For SMBs, the path ahead involves navigating partnerships that offer not only credibility but also measurable success. The onus is now on media companies to respond to the evolving demands of their SMB clients and position themselves as integral partners that contribute to their growth, rather than simply providers of advertising space. As the market dynamics shift, the future of advertising could hinge on how effectively these media partnerships can evolve in response to the needs of small and mid-sized businesses.
Topics Business Technology）
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