Small business owners are feeling the pressure as a new report reveals a disconnect between marketing efforts and confidence in their effectiveness. Constant Contact’s 2025 Small Business Now report highlights that, despite increased investment and the adoption of modern marketing strategies, fewer small and mid-sized businesses (SMBs) feel certain that their initiatives are yielding valuable results.
A mere 18% of SMBs globally report being “very confident” in the outcomes of their marketing efforts, a significant drop from 27% the previous year. This troubling trend indicates that while businesses are dedicating more time, energy, and resources to marketing, many still struggle with the fundamental issue of measuring its success.
“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,” stated Smita Wadhawan, Chief Marketing Officer at Constant Contact. “They are working harder than ever, but without the time, expertise, or data to guide them, many are still guessing about what will resonate with their customers.”
Amid rising economic concerns and changing consumer expectations, SMBs have ramped up their marketing efforts. Notably, 44% report that email is their most effective channel, up from just 23% in 2024. This emphasizes a notable shift back to tried-and-true methods for reaching customers, even as new technologies gain traction.
Adoption of technology, particularly artificial intelligence and video, is on the rise among small businesses. Nearly half of SMBs are using AI in various aspects of marketing, from writing email copy to analyzing data. Businesses using AI report improved performance metrics, particularly in email marketing and social media campaigns. In addition, a whopping 78% of SMBs are integrating video into their marketing strategies, utilizing formats such as customer testimonials and promotional content.
However, not all is smooth sailing. Many SMBs cite data privacy and trust in AI-generated content as major concerns, with 35% and 31% respectively fearing these aspects. The anxiety surrounding data security and brand consistency poses challenges for owners incorporating AI into their marketing plans.
While the report indicates a strong reliance on email and the increasing use of technology, it also uncovers significant hurdles. For instance, 42% of SMBs have less than one hour per day to devote to marketing. This time constraint can make it more difficult for owners to measure campaign effectiveness and adapt quickly to what works.
Economic pressures are also shaping marketing decisions. A significant portion of SMBs worldwide point to rising costs and tariffs as major challenges that impact operational strategies. In fact, 44% cite increasing goods costs as their top concern, with many reporting negative effects due to shifts in trade policies. In Canada, for example, almost half of the small businesses have raised prices in response to these economic challenges.
The landscape varies across countries. SMBs in the UK show the highest confidence in their marketing, with 22% of respondents feeling “very confident,” while U.S. businesses are more likely to express doubts about efficacy. This disparity reveals a nuanced global outlook where local market dynamics play a crucial role in shaping small business sentiment.
For small business owners, the implications of these findings are clear. Investing in effective marketing strategies—particularly using emails and integrating video—can yield benefits, but building confidence in these efforts may require additional resources or expert guidance. Exploring AI tools can mitigate some challenges, but it also demands a careful approach to ensure brand integrity and data security.
To navigate the complexities of current marketing trends, small businesses might consider leveraging data analytics and professional advice to create tailored strategies. Understanding customer behavior and market trends, while remaining agile amid uncertainty, will be crucial as they continue to seek growth amid evolving challenges.
For more insights from the report, you can access the full findings at Constant Contact’s official blog here.
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