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A new report from Constant Contact reveals a landscape of strategic adaptation for small and medium-sized businesses (SMBs) heading into the critical holiday season. While optimism remains high, businesses are intensifying their marketing efforts and navigating economic pressures to capitalize on a period that accounts for up to half of the annual sales for 60% of SMBs.
Quick Intel
Constant Contact's report shows 60% of SMBs earn up to half their yearly sales in Q4.
77% of SMB owners are confident about meeting their annual revenue targets.
The number of US SMBs launching new holiday campaigns quadrupled to 33% in 2025.
Social media is seen as the most impactful marketing channel by 40% of SMBs.
Top challenges include inflation (32%) and customer engagement (39%).
46% of businesses report negative impacts from recent tariff policies.
Recognizing the high stakes, SMBs are significantly ramping up their marketing strategies. A notable 60% plan to increase their marketing communication frequency. The most dramatic shift is in strategic planning, with the number of U.S. businesses launching entirely new marketing campaigns quadrupling from 7% in 2024 to 33% in 2025. This indicates a move beyond simple repetition to more innovative and targeted outreach.
When it comes to choosing marketing channels, social media is perceived as the most impactful for holiday success by 40% of SMBs, significantly outpacing email marketing at 18%. In terms of promotions, discounts and sales remain the most effective tool, utilized by more than half (51%) of businesses. The focus on these strategies is validated by past success, as 81% of SMBs reported that last year's holiday marketing efforts primarily led to increased sales and new customers.
Despite their confidence, SMBs face significant headwinds. Externally, inflation and rising costs (32%) and weak customer spending (22%) are primary concerns. Internally, the biggest challenges are engaging customers (39%), managing budget limitations (36%), and generating new content ideas (34%). Furthermore, nearly half (46%) of businesses report being negatively impacted by recent tariff policies, leading many to cut expenses or raise prices.
The 2025 holiday season presents a dual narrative of pressure and proactive adaptation for small businesses. While economic challenges persist, SMBs are responding with more sophisticated and frequent marketing campaigns. Coupled with strong consumer loyalty—where 72% of shoppers return to the same small businesses each year—this strategic pivot positions resilient SMBs to effectively compete and strive for their revenue goals.
Constant Contact makes digital marketing easy and effective for small businesses and nonprofits across the globe. Whether just starting or managing complex multi-channel campaigns, SMBs benefit from our powerful SaaS platform that delivers a simplified marketing experience in less time and with better results. With cutting-edge technology, best-in-class deliverability, and award-winning customer support, we help the small stand tall.
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