Digital marketing is growing by leaps and bounds with digital expected to capture 25% of ad spend market share by 2016. Even with this growth, small business owners have been slow to adopt digital marketing practices. Comparatively, franchise owners are showing their entrepreneurial spirit by quickly adopting digital marketing strategies.
A recent study by BIA/Kelsey shows franchisees are expected to spend more than 40% of their marketing budget on digital in 2015. This represents a 10% increase over 2014 and is substantially more than the typical small business owner expects to spend on digital marketing this year.
The franchise industry is coming off its fourth consecutive year of growth with approximately 770 million US franchise locations generating roughly $839 billion in revenues in 2014. This represents a 4% increase in revenue generation over 2013.
This growth has encouraged franchisees to increase marketing budgets with many showing an interest and focus on digital marketing initiatives. According to BIA/Kelsey, the average marketing spend by franchise owners was $87,000. This was a 50% increase over the 2013 average.
Why are franchisees adopting digital media at such a high rate? Much of it has to do with the relationship between the franchise owner and the parent brand. Franchise brands provide individual location owners with access to digital agencies, like Qiigo, allowing franchisees to adopt new and innovative marketing strategies at a faster rate than their independent counterparts.
Additionally, franchise owners report a high satisfaction rate with the relationships they maintain with their digital marketing agency. Loyalty is high with 88% reporting they are either “very satisfied” or “extremely satisfied” with their digital agency.
Qiigo is proud to partner with leading national brands to provide comprehensive digital marketing solutions. Our expertise in local franchise marketing including local search, directory management, and reputation management has made us a trusted partner for national brands and their locations across the country. Call Qiigo today at (404) 496-6841 to begin a digital marketing partnership.