Why Small Businesses Are Spending More on Marketing in 2026 (and Feeling Less Confident Than Ever)

The Real Story Right Now Isn’t That Spending Is Down. It’s That Most Owners Don’t Know What’s Working.

A significant shift is occurring in the marketing landscape. More than two-thirds of small businesses are increasing marketing budgets this year, yet fewer than one in five small business owners say they feel confident their marketing is actually working.

This disconnect represents the central challenge for entrepreneurs today: increased investment paired with decreased confidence about outcomes.

What We’re Seeing Across Our Clients

Key observations include:

• Consumer spending in B2B services remains stable but varies significantly by geography and industry
• Small business spending is growing, though growth rates are decelerating
• Market leaders are doubling down on marketing efforts
• Smaller companies are hesitating, losing competitive ground
• Demand collection works well for businesses with clear ideal customer profiles
• Meta and Google lead forms often produce costly customers despite low per-lead costs
• Connected TV retargeting generates meaningful results at modest budget levels
• AI adoption shows uneven returns depending on implementation strategy

Who Is Actually Winning Right Now

Winners share common characteristics:

• Service businesses with defined ICPs and responsive follow-up systems
• Companies positioned in or adjacent to energy and infrastructure buildouts
• Local service businesses committed to SEO and reputation management
• Operators using AI to enhance human interaction rather than replace it
• Businesses with stable operations and strong customer testimonials

What Doesn’t Change, No Matter the Environment

There are four enduring fundamentals:

1. Reaching your serviceable addressable market effectively
2. Strong positioning and pricing that distinguishes your offer
3. Consistent marketing execution through difficult periods
4. Operational stability enabling quality customer stories

Recommendations for the Next 30 to 90 Days

The guidance focuses on:

• Reviewing whether your website clearly communicates your value proposition
• Auditing marketing channels by lead quality, not just cost per lead
• Establishing comprehensive reporting across the entire customer journey, including Cost Per Qualified Lead and Customer Acquisition Cost