May 05, 2015 | 2 minute read 
A recent study by BIA/Kelsey shows franchise owners are adopting digital marketing strategies at a faster pace than independent small business owners. The growth of digital marketing is expected to continue for the foreseeable future with digital expected to grab approximately 25% of ad spend market share by 2016. What makes franchisees so receptive to digital marketing strategies?
The BIA/Kelsey study reveals that 42% of franchisees’ marketing budgets are expected to be devoted to digital marketing in 2015. This represents a 10% increase over digital marketing spend by franchisees in 2014. The average marketing spend by franchisees in 2014 was $87,000, a 50% increase over spend in 2013.
Franchise owners are riding the wave of growth in the franchise industry. The franchise industry is coming off four consecutive years of growth in 2014. The International Franchise Association reports that in 2014 there were approximately 770 million franchise locations generating nearly $840 billion in revenues. Year over year revenues for the franchise industry rose 4% between 2013 and 2014. This growth has contributed to the increased marketing spend by franchise owners.
Compared to their independent counterparts, franchise owners enjoy greater exposure and access to digital marketing agencies. Parent brands are embracing digital marketing initiatives and providing their location owners with access to online marketing agencies. Franchise owners are more likely to adopt relationships with these digital agencies and keep those relationships going. More than half of franchisees in the BIA/Kelsey report state they have been with their digital marketing agency for over two years. Additionally, 88% of those surveyed reported being “very satisfied” or “extremely satisfied” with their digital agency.
As digital continues to grab market share, it will be interesting to see if independent business owners begin to adopt more digital strategies mirroring the actions of franchise owners.
