Digital marketing spending is likely to increase, as traditional marketing and PR gets a facelift in 2021. Small businesses will drive the adoption of developing technologies, and AR/VR will come into its own as the COVID-19 pandemic continues into 2021. This article is for entrepreneurs who want to start the new year off right by capitalizing on trends and predictions that will impact their industry.
With 2020 in the books, small businesses are optimistic that 2021 will be a brighter year. While the COVID-19 pandemic is not yet gone for businesses across the U.S., that optimism is buoyed by the distribution of vaccines. Although the pandemic has been front and center since early last year, there are other trends on the horizon for entrepreneurs to watch as well.
Business News Daily connected with experts in finance, marketing, tech, and human resources to find out what small businesses should expect in 2021 and how to take advantage of these trends.
The economic impact of the COVID-19 pandemic has depleted many businesses’ cash reserves. Although many states reopened after initial shutdowns, some are reimposing restrictions, reigniting concerns around cash flow and the survival of small businesses. The recent $900 billion stimulus bill included additional funding for the Paycheck Protection Program (PPP), which was established last year under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Small businesses should try to take advantage of the new stimulus bill, including [applying for] a new PPP [loan], said Courtney Lawless, venture capitalist and co-host of the Amazon Prime series Wolf PAC.
For many other business owners, loans might not be an option, especially if they incurred significant financial loss during the COVID-19 pandemic. In those cases, alternative sources of funding, such as alternative lenders or investors, might be critical to attaining much-needed funding for many entrepreneurs.
“Alternative sources of capital will likely also play a pivotal role in keeping businesses solvent,” Lawless said. “Alternative sources would include … grants, fintech, venture capital, angel investors, peer-to-peer lending, and crowdfunding to name a few. These are important because many businesses that actually need the capital will not be able to meet the requirements of traditional funding sources due to the negative impact [the COVID-19 pandemic] has had on their balance sheets.”
The leading social media platforms have billions of users between them, so it is no surprise that social media has been a growing target for marketers. That rapid growth won’t stop in 2021. Estimates from suggest that social media ad spend will increase by 15% in 2021, growing the total spent on social media ads to $105 billion. That’s nearly double the $54.4 billion total social media ad spend in 2017.
“Year over year, we’re seeing spend on social media increase – and this year it was a dramatic increase,” CEO of Quantum Media Group. Everyone was forced to pull back on traditional brick-and-mortar marketing. They were forced into digital, and many of them see that it is working really well.
“We’ll see a thrust forward with digital marketing spend in 2021,”
While social media advertising is increasingly important, it is increasingly competitive. Small businesses should focus on a multichannel organic approach to build an audience and brand awareness. While ads can bolster organic growth, small businesses should avoid getting into a social media arms race with competitors when organic approaches like content marketing could have a better return on investment.
From 2012 through 2019, spending on paid placement advertisements in the U.S. grew from $4.75 billion to $11.44 billion, and that trend is only going to continue in 2021. Additionally, the line between sponsored content and non-sponsored content is likely to blur, since audiences clearly prefer authenticity to an advertisement, he added.
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