Constant Contact's Q1 2026 Small Business Now report, based on a survey of over 1,500 small business owners in the US, Canada, UK, Australia, and New Zealand, reveals a resilient mindset amid economic pressures. Despite inflation topping concerns for 41% of owners, small businesses are aggressively increasing marketing investments to drive growth rather than scaling back.
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Small business owners are confronting ongoing economic challenges with determination, viewing marketing not as an optional cost but as a vital driver of visibility, customer acquisition, and long-term sustainability. The report highlights a proactive shift toward higher investment levels even as inflation and rising costs dominate worries, outranking issues like weak customer spending.
This aggressive stance reflects confidence that strategic marketing efforts can counteract economic headwinds. With a majority planning to allocate more time and resources, the emphasis lies on efficiency and smarter execution to avoid overextension.
Customer engagement emerges as a central challenge, with nearly half of owners anticipating difficulties in connecting meaningfully with audiences amid increased activity. To address this, businesses are focusing on streamlined processes and emerging technologies that deliver better results with less manual effort.
AI is gaining significant traction as a practical solution for balancing ambition with capability. Over half of surveyed owners already incorporate AI tools into their workflows, using them not only for content creation but increasingly for data-driven insights like trend analysis, enabling more informed and timely decisions.
Digital channels dominate future expectations, with social media and email marketing positioned as primary drivers of business outcomes. These platforms offer scalable, measurable reach that aligns with the need for cost-effective, high-impact engagement compared to more resource-intensive traditional or in-person approaches.
"Small business owners are entering 2026 with a clear directive: do more, but do it smarter," said Smita Wadhawan, Chief Marketing Officer at Constant Contact. "Our latest data shows a fascinating tension—inflation is the number one worry, yet businesses are choosing to increase their marketing budgets rather than cut them. This signals that entrepreneurs view marketing not as a discretionary expense, but as the essential lever for survival and growth. By leaning into efficiency and AI tools, they are finding ways to maintain this increased pace without burning out."
The findings underscore a sector committed to innovation and adaptation, prioritizing tools and strategies that enhance efficiency, deepen audience connections, and sustain growth in an uncertain environment.
About Constant Contact:
Constant Contact is an all-in-one digital marketing platform that helps small businesses, franchises, and nonprofits connect with customers and grow their brand. For more than 30 years, the company has supported organizations of all sizes with easy-to-use tools for email, social media, events, and more. By combining easy-to-use technology with built-in guidance and automation, Constant Contact helps organizations market more effectively and build lasting customer relationships.
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