A recent report from Constant Contact highlights a stark contradiction in the world of small business marketing: effort is escalating, yet confidence is dwindling. The 2025 Small Business Now report reveals that only 18% of small and medium-sized businesses (SMBs) feel “very confident” in their marketing effectiveness. This marks a significant drop from 27% in 2024. As small business owners navigate a landscape of escalating costs and shifting consumer expectations, they may find both opportunities and challenges in these findings.
The report emphasizes a noteworthy trend: while SMBs are deploying more resources into marketing, including an increased reliance on email, artificial intelligence, and video content, success rates are not reflecting this investment. According to the data, 44% of SMBs now consider email the most effective marketing channel, a substantial rise from just 23% last year. This marked improvement underscores the enduring value of email marketing as a fundamental strategy.
However, the core of the findings indicates that economic pressures are taking a toll on small businesses. A staggering 44% of respondents cite rising costs of goods as their primary concern. Furthermore, 62% report negative impacts from tariffs. With many SMBs feeling unprepared to adapt to this uncertain economic environment—only 17% claim to be “very prepared”—the results point to a potential disconnect between effort and outcome.
"Small businesses are under real pressure to see positive results from their marketing, but many feel like they are doing more without getting more back," says Smita Wadhawan, Chief Marketing Officer at Constant Contact. The data suggests that the struggle to translate marketing efforts into tangible results could be attributed to several factors, including time limitations and a lack of data-driven insights.
This increased effort, juxtaposed with declining confidence, leads many SMB owners to rethink their strategies. More than one-third of businesses reported boosting their marketing budget this year, yet an alarming 42% indicate they have less than one hour a day to dedicate to marketing activities. The most cited frustration among SMBs is a lack of clarity regarding what strategies are truly effective.
Technological advancements present both opportunities and challenges for SMBs seeking to revamp their marketing efforts. The report reveals that nearly half of small businesses are now leveraging AI in their marketing strategies, particularly for tasks such as writing email copy and analyzing data. Among these businesses, those that employ AI report improved performance across their email campaigns, paid social media, and search marketing.
Yet, the enthusiasm for AI is tempered by concerns over data privacy and trust in AI-generated content. Approximately 35% of respondents expressed apprehension regarding data privacy issues, while 31% are skeptical about the reliability of content produced by AI. For SMB owners, navigating these uncertainties will require careful consideration.
The use of video marketing also emerged as a critical aspect of modern marketing strategies, with 78% of small businesses incorporating video into their campaigns. Popular formats include customer testimonials and promotional content, which can create a more engaging connection with potential customers and foster brand loyalty.
For small business owners grappling with these evolving dynamics, it is essential to remember that while effort is commendable, measuring the impact of marketing activities remains crucial. Sourcing reliable data analytics tools and leveraging customer feedback can provide insights that help determine the effectiveness of marketing tactics.
The findings from Constant Contact’s report present small business owners with a dual-edged sword: they must be prepared to invest in marketing while simultaneously addressing the barriers that hinder confidence in their results. To further explore the detailed findings and implications of this report, you can access it here.
As SMBs continue to navigate this volatile environment, balancing marketing effort with informed strategies will be crucial for achieving desired outcomes and fostering long-term growth.
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