Small businesses are working harder than ever on marketing—but they’re not feeling good about it.

That’s the takeaway from Constant Contact’s new Small Business Now report, The State of Small Business Marketing. The study paints a paradoxical picture: while SMBs are spending more, using more sophisticated tools like AI and video, and leaning on reliable channels like email, their confidence in results is eroding.

In 2024, 27% of SMBs felt “very confident” in their marketing. In 2025, that number is down to just 18%. In the U.S., many admit they’re “not confident at all.”

Economic Pressure Meets Marketing Fatigue

Small businesses globally are still battling rising costs, tariffs, and supply chain turbulence. According to the report:

• 44% cite rising goods costs as their top concern.

• 62% say tariffs have negatively impacted operations.

• Nearly half have raised prices, while 39% have switched suppliers.

Regional differences are telling. Canadian SMBs are leaning into the “Buy Canadian” movement, even as U.S. trade policies bite. In Australia and New Zealand, optimism is highest, with 67% of SMBs upbeat about the year ahead.

More Marketing, Less Clarity

Despite the turbulence, SMBs aren’t retreating from marketing—they’re doubling down.

• 37% increased marketing spend this year.

• 44% now say email is their most effective channel, nearly doubling from 2024.

• But 42% have less than an hour a day to spend on marketing.

• And the top frustration globally? Not knowing what’s working.

This mismatch—more effort, less confidence—is driving the anxiety.

“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,” said Smita Wadhawan, CMO at Constant Contact.

AI and Video on the Rise

The bright spot is technology adoption. Nearly half (48%) of SMBs globally are now using AI in some form, mostly for copywriting and social posts, but also for visuals and data analysis.

Those who use AI across multiple channels are seeing measurable gains in email, paid social, and search performance. Still, concerns linger:

• 35% worry about data privacy.

• 31% distrust AI-generated content.

• 26% fear it weakens brand voice.

Video has become nearly universal, with 78% of SMBs using it. Customer testimonials, culture clips, promotions, and practical tips are the most effective formats.

The Bottom Line

Small businesses are hustling. They’re raising budgets, adopting AI, and embracing video. But marketing confidence is sliding, weighed down by economic uncertainty and the sheer difficulty of proving ROI.

Constant Contact’s findings suggest the next frontier isn’t just giving SMBs more tools—it’s giving them more clarity.

Get in touch with our MarTech Experts.