What Constant Contact’s 2025 “State of Small Business Marketing” Report Reveals for Small Business Owners

Online marketing company Constant Contact has delivered its latest State of Small Business Marketing report, which offers a powerful snapshot of where small business marketing stands today (for better and for worse). It shows a marketing landscape bursting with tools and ambition, but shadowed by growing uncertainty around effectiveness. Let’s dig into what you need to know, and why it matters for your business.

More Marketing Effort—But Less Confidence in Results

Despite increased effort and adoption of tech, fewer SMBs are confident that their marketing is working. Only 18 percent of small businesses feel “very confident” in the effectiveness of their marketing, which is down from 27 percent in 2024. This growing confidence gap signals that simply doing more isn’t enough: results matter more than effort.

Email Remains King

Email’s effectiveness continues its comeback: 44 percent of SMBs now cite email as their most effective marketing channel, nearly doubling from 23 percent in 2024. This underscores the enduring power of direct, owned communication, especially when done well.

Rising Tech Adoption: AI and Video Are Here to Stay

Adoption of marketing technology is surging among SMBs:

• 48 percent now use AI in their marketing, with the most common use being writing copy for emails and social media (37 percent)—followed by visual content creation (29 percent) and data analysis (25 percent).
• 78 percent of SMBs leverage video, especially in the form of customer testimonials (27 percent), company culture videos (26 percent), promotional content (25 percent), and how-to advice (25 percent).

Small businesses that use AI across multiple channels report stronger marketing performance, especially in email, paid social, and search. Yet concerns remain: data privacy (35 percent), brand voice consistency (26 percent), and trust in AI-generated content (31 percent) are cited as top barriers.

Economic Pressures Are Forcing Pivots

Cost pressures, especially from rising goods expenses and tariffs, are forcing strategic shifts:

• 44 percent of SMBs say the rising cost of goods is their top concern.
• 62 percent report that tariffs have had a negative impact on operations.
• In response, 46 percent increased prices, 39 percent switched suppliers, and 22 percent delayed planned launches.

Interestingly, SMBs in Australia & New Zealand report the highest optimism—with 67 percent feeling good about the rest of the year—while Canadian businesses are capitalizing on the “Buy Canadian” sentiment amid trade uncertainty.

Time—The Scarce Resource

Time remains a precious commodity: 42 percent of SMBs report having under one hour per day for marketing. For business owners wearing multiple hats, time-to-impact is more valuable than volume of activity. Tools that streamline strategy, schedule campaigns, and deliver insight will matter more than ever.

What This Means for Your Small Business

1. Double down on email. It’s where your best ROI and greatest confidence lie.
2. Be strategic with AI and video. Embrace these tools to save time and turbocharge content (but test tone, trust, and brand voice carefully).
3. Respond to economic pressures with agility. Reassess pricing and supplier strategies quickly instead of letting tariffs erode margins.
4. Optimize for time efficiency. Invest in marketing tools that automate, analyze, and deliver results faster.
5. Prioritize channels that build trust and community. Focus on owned channels (like email) that keep customers close, especially when uncertainty lurks.

Constant Contact’s report paints a vivid picture: SMBs are working harder than ever, but often with less confidence in their results. For business owners like you, the path forward is clear: modern marketing isn’t about doing more—it’s about doing smarter. Focus on channels, tech, and strategies that deliver measurable, meaningful growth. And stick with ARF Financial for best-in-class loan products, expert consultants, and informative content covering all things small business.

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