Understanding the new generation of advertisers

The first increase in advertising since the Great Recession is now underway – but it is fueled by smaller, newer companies, according to a Borrell & Associates 2023 report, especially the explosion in new post-pandemic business start-ups.

However, these niche businesses have different needs and perspectives, so the first step to engaging with them is to understand who they are. 

The generation of new businesses owners are younger, spending more, digital first and interested in innovative strategies..

Take entrepreneurship alone: In 2021 5.4 million new business applications were filed, marking the highest of any year on record and a 53% increase from 2019. (U.S. Census Bureau). 

To put this in perspective, there are  3.9 million more new businesses created post-pandemic than in the prior three years, and this is the group planning to increase advertising spending this year (Borrell, 2023).

The new generation of advertisers

• They are smaller – 71% have fewer than ten employees. That also means catering to  smaller budgets (Borrell, 2023)

• A large share of owners are also younger. Millennial Small Business Owners (MSBOs) and GenX owners are a trend that will only increase. About half of the millennials already have some side hustle and, in the next decade, will inherit $32 trillion from their Baby Boomer parents.    Others are moving into management positions that require digital native skills. They are looking for digital options first. 

• They are  inexperienced marketers who want to be educated, and most say they will try some new innovative marketing in 2023 (Borrell).

• Research also shows that millennials, in general, are thorough pre-purchase online researchers, actively searching options, including researching  your website (Statistica).

• They also have high expectations for the user experience and expect purchasing to be pain-free. Rather than scrolling to the bottom of your website to fill out a form, find better ways to Amazonify the experience.

• 92% are motivated by a great experience to write a review, but  73% will switch to a competitor after just one horrible purchase experience (Zen Desk).  

So how to approach this new group?

The first place to start is your website. No matter what other kinds of marketing you do, these new SMBs are winding up on your website. So if it is not optimized for their experience, they may be gone.

Is it easy to find all your marketing products and how to buy them? Removing friction from the customer journey is the fastest way to increase orders.

Our top recommendation is to put the “Advertise” links in the top navigation bar rather than at the bottom of the website, with all the products in a drop-down. Another option is using a landing page for multiple products.

Always have a phone number rather than a form fill, and use online-ordering options if possible.

Add a compelling message and strong call to action on the landing page, such as a video with a Calendly link. The letter should include a unique advantage that no one else can provide, not just features offered.  Do you have 80% of a particular slice of the market? That’s more compelling than 20,000 or 40,000 of something, which is just a feature.

Use your banner ads and pop-up inventory to market the message and deploy social media to demonstrate authority and credibility.

Provide cases with results; that is one f the most persuasive instigators to prompt  a “next step.”

Remember that B2B advertisers may spend 95% of their pre-purchase research without making or taking a phone call to or from a sales rep, so the website has to do a lot of the heavy lifting.

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