Last year, I wrote about the 2024 Small Biz Now report from Constant Contact, which revealed that many small business owners were overwhelmed by marketing needs. This year’s report shows that small business owners are moving ahead and “investing more in their marketing and using new tools.” Yet only 18% feel “very confident” in their marketing effectiveness—down from 27% in 2024.
Marketing frustrations
In its blog about the 2025 Small Biz Now report, Constant Contact found that small business owners were frustrated in their marketing pursuits:
- 23%: Not knowing what’s not working
- 21%: Too expensive to do well
- 19%: Takes too much time to manage
- 13%: Not sure what customers care about
- 10%: Don’t know what kind of content to create
- 8%: Don’t know where to start
Economic pressures require pivots
Small business owners are facing numerous economic pressures, but 44% say rising costs are their primary concern. And 62% say tariffs have impacted their sourcing. And another 68% expect more disruptions to occur this year.
In response, they’re:
- 46% are raising prices
- 39% are looking for new suppliers
- 22% are even delaying launches
Yet, despite taking action, only 17% say they’re “very prepared” to adapt. This isn’t necessarily all bad. Constant Contact says, “When you lack clear insights into what’s working (and what’s not), efficiency and insight become your new competitive edge.”
Adopting new marketing practices
The Small Business Now report says, “Small businesses are always looking for ways to do more with less.” This year, they’ve turned to AI and video.
48% of SMBs are using AI in their marketing
AI helps business owners “save time and gain marketing know-how.” They use it to help them write emails, social media posts, and brainstorm ideas faster. Small businesses that currently use AI:
- Are more likely to see success in email (53% vs. 35%).
- Perform better in paid social (43% vs. 20%).
- Report stronger search marketing results (21% vs. 9%)
But they are a bit hesitant about AI:
- 35%: Unsure how to use it effectively
- 35%: Have data privacy concerns
- 31%: Concerned about AI-generated content
- 26%: Worry about brand inconsistencies
78% of small businesses use video in their marketing
Video has also become a core part of the SMB marketing mix. The most impactful types of video content include:
- 27%: Customer testimonials
- 26%: Company culture videos
- 25%: Promotional content
- 25%: Advice, tips, and how-tos
Email and SMS quietly reclaim their power
The Small Biz Now report also reveals that email remains a consistent performer, particularly effective in tech (49%), retail and e-commerce (47%), and professional services (46%). And 44% of businesses say email is their most effective channel—almost double from 2024.
SMS marketing is “gaining traction in health and wellness, where 29% of businesses say it’s a top-performing channel—far higher than any other industry.
From effort to impact
The Small Biz Now report states small businesses are continuing to step up their marketing game. This year, 37% increased their marketing budgets, and are combining proven marketing channels like email and SMS, with newer tools like AI and video to stay ahead.
Beware the gap
The report reminds business owners to beware the “confidence gap, where activity is high, but certainty is low.” This is where, it says, “many small businesses are stuck. Without a clear view of what drives results, it’s incredibly difficult to make confident, data-informed decisions. The gap is in insight and direction.”
But, if you keep investing in what you know, refine what you can, and hold the line until the path forward is just a little bit clearer,” you’ll be able to bridge the gap.
Small businesses are resilient. And, the report concludes, “With the right tools and support, you can shift from guesswork to growth and finally close the gap between effort and impact.”
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
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