A new report from Constant Contact shows that while small businesses are investing more in marketing, confidence in the effectiveness of those efforts is declining.
The digital marketing platform released its latest Small Business Now report, titled The State of Small Business Marketing, which found that only 18 per cent of small and medium-sized businesses (SMBs) feel “very confident” in their marketing results—down from 27 per cent in 2024.
“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, 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.”
Smita Wadhawan
The study, based on a survey of 2,500 small business decision-makers in Canada, the United States, the United Kingdom and Australia/New Zealand, highlights economic pressure and time constraints as key challenges. Forty-four per cent of SMBs globally cited rising costs of goods as their top concern, while 42 per cent reported having less than an hour per day to focus on marketing.
In Canada, nearly half of SMBs have raised prices, and 69 per cent report facing supply issues. Forty-five per cent said changes to U.S. trade policies had a negative impact on their business in 2025. Despite this, 47 per cent expect momentum to grow for buying Canadian-made products and services throughout the rest of the year.
Globally, 37 per cent of SMBs have increased their marketing spend, and 44 per cent say email marketing is their most effective channel—up from 23 per cent in 2024.
Adoption of digital tools is also on the rise. The report found that 48 per cent of SMBs now use artificial intelligence in their marketing, primarily for writing email and social media content. Seventy-eight per cent use video, with customer testimonials and company culture content among the most effective formats.
However, barriers remain. Top concerns around AI include data privacy (35 per cent), trust in generated content (31 per cent), and inconsistent brand voice (26 per cent).
Wadhawan said Constant Contact aims to address these challenges by offering tools, insights and support that help small businesses improve performance and regain confidence.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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