A new report from Constant Contact reveals a paradox for small businesses in 2025: entrepreneurs are investing more time, money, and energy into marketing — yet confidence in what’s working continues to fall.
The Small Business Now survey of 2,500 decision-makers across the U.S., Canada, the U.K., and Australia/New Zealand found that while 37% of small businesses have increased their marketing budgets this year, only 18% feel “very confident” in their marketing effectiveness, down from 27% in 2024.
Economic pressures are also reshaping strategies. Rising costs and tariffs remain top concerns, with many business owners responding by raising prices, finding new suppliers, or even delaying product launches. Regional responses vary — Canadian firms lean more heavily on local sourcing, while entrepreneurs in ANZ show the highest economic confidence globally.
When it comes to channels, tried-and-true methods are making a comeback. Email remains a top performer, with 44% of SMBs calling it their most effective tool, and SMS is gaining traction in industries like health and wellness. At the same time, adoption of newer tools is accelerating: nearly half of small businesses now use AI for tasks like writing emails, creating visuals, and optimizing social posts, and 78% are leveraging video to connect with customers. Still, concerns about privacy, trust, and brand consistency keep many hesitant.
The report underscores a growing “confidence gap” — where activity is high, but certainty is low. Small businesses are working harder than ever, but without clearer insights into what’s actually driving results, many remain stuck guessing. Constant Contact suggests the key isn’t doing more, but focusing on what works, with the right tools and data to bridge the gap between effort and impact.