By Vicky Sidler | Published 19 January 2026 at 12:00 GMT+2

If 2025 felt like trying to nail jelly to a wall, you weren’t alone. Marketing moved fast, budgets shrank in real terms, and channels that once printed money started acting their age.

If you're a small business owner staring at your 2026 plan thinking, "Surely there's a better way," then yes—there is. And no, it doesn’t involve dancing on TikTok unless that’s already your thing.

This roundup pulls together new survey data from over 300 small businesses, ROI comparisons, and actual strategies that real businesses are using to grow without wasting time or money.

The goal? Show you what’s working now—without fluff, and without you needing a 12-person marketing team to pull it off.

TL;DR

• Most small businesses still spend less than $1,000 a month on marketing

• Video marketing and email deliver the highest satisfaction and ROI

• Social media is everywhere but rarely performs well on its own

• Customer referrals are still the #1 source of leads

• Local SEO and Google Business Profile updates are non-negotiable

• A good email list will pay for itself many times over

• You can’t rely on one platform anymore—multi-channel is the only way forward

👉 Need help getting your message right? Download the 5-Minute Marketing Fix.

Table of Contents:

What 300+ Small Business Owners Have Said:

LocaliQ’s 2026 Small Business Marketing Report asked owners how they’re spending, what’s working, and what’s keeping them up at night. Most said the same thing: they’re cautious, not clueless.

Only 8% are cutting marketing budgets in 2026. That’s down from 16% last year. Forty percent are increasing spend, and the rest are holding steady. But here’s the punchline: over half are still working with less than $1,000 a month. And half don’t have a single dedicated marketing person.

Translation: every rand, dollar, or pound needs to carry its own weight.

With inflation, inconsistent consumer spending, and the general feeling that the economic weather forecast is stuck on “foggy,” business owners are leaning into what works fast. That means measurable returns, not branding exercises that might pay off someday.

What They’re Using vs. What Works:

The most used marketing channels this year?

• Unpaid social media (66%)

• Social media ads (56%)

• SEO and email marketing (53% each)

• Google Ads (45%)

But when asked what actually delivers results, the list changed:

• Video marketing

• Reputation management

• Google Ads

• SEO

• Content marketing

• Email

Social media dropped like a stone. Despite being everyone’s default move, it’s rarely the most effective—at least on its own. Video, on the other hand, climbed to the top in both satisfaction and planned investment. If you’ve been thinking about video but worried it’s too late or too crowded, 2026 says otherwise.

Referrals Are Still King. But You Can’t Scale Them Alone.

Eighty-three percent of business owners say word of mouth is still their best source of leads. It’s up 18 percentage points from last year. If your business has under 10 employees, that jumps to 87%.

There’s a catch, though. Referrals are great, but they’re also passive. You can’t control when someone refers you or how often. Which is why smart businesses back up word-of-mouth with online visibility and consistent communication. Think Google, email, and retargeting—channels that keep you present when your past client says, “You should talk to…”

The Single-Channel Shortcut Is Dead:

Used to be, you could build a business on Facebook alone. Or rank on Google with a few blog posts. Not anymore. Every platform has tightened reach, raised prices, or both.

Customers also don’t convert on the first click. Or the second. Research says it takes 7 or more touchpoints before someone buys. If all your touchpoints live on one platform, you’re asking too much of one tool.

Spread across three types:

• Awareness (social media, TV, sponsorships)

• Capture (Google Ads, local SEO)

• Nurture (email, retargeting)

Cover all three, and you’re building a system. Miss one, and you’re leaking leads.

The Local SEO Work That Still Pays Off:

Local SEO remains the highest-ROI investment for brick-and-mortar and service-area businesses. A complete Google Business Profile, regularly updated with posts, photos, and reviews, acts like a modern-day Yellow Pages ad that actually gets read.

Do the basics:

• Respond to reviews

• Add fresh photos weekly

• Post updates

• Collect reviews every month

• Make sure your service area is accurate

This is not glamorous work, but it is reliable.

Email—Still the ROI Champ:

Email marketing keeps its crown in 2026. You don’t need fancy design or clever wordplay. You need relevance, consistency, and permission.

Send useful stuff:

• How-to guides

• Local tips

• Behind-the-scenes updates

• Occasional offers

Automated flows based on real behavior—like following up after someone browses your site—outperform generic blasts by a wide margin. And modern tools make this doable even with small lists and smaller budgets.

Paid Search Works Fast, but Burns Fast Too:

Google Ads still brings in high-intent traffic, but only if you know what you’re doing. It’s easy to burn through your budget targeting the wrong people.

Start with long-tail keywords. Use negative keywords. Track actual leads, not just clicks. Pause what isn’t working. Google won’t do that for you, despite its kind encouragement to “spend more.”

Social Media—Keep It in Context:

Yes, you still need it. No, it won’t save your business.

Social should support your brand, not carry it. Use it for customer engagement, content sharing, and community visibility. But don’t rely on it for predictable leads.

If you’re on Facebook and Instagram, great. Post consistently, reply to comments, and experiment with short-form video. But skip the pressure to go viral. That game’s rigged.

Video Marketing—Not Optional Anymore:

Video tops the satisfaction chart for a reason. It converts. It builds trust. And it doesn’t need to be fancy.

In fact, smartphone footage of you or your team answering FAQs, showing how something works, or talking about customer wins often outperforms studio-grade productions.

Short-form platforms like Instagram Reels and YouTube Shorts still offer the rare gift of organic reach. Use them while you can.

Bottom Line—Pick What Works, Ditch What Doesn’t:

There’s no one-size-fits-all plan. But the data shows a few common truths:

• Local SEO and email still bring home the bacon

• Video works across industries

• Paid ads work if you track properly

• Social media works best as a support act, not the lead

• Referrals still matter—but they’re not a strategy

Your job this year isn’t to do everything. It’s to do a few things really well, and keep showing up where your customers are.

And while you’re at it, get my 5-Minute Marketing Fix to make sure your message is clear before you spend a cent.

👉 Download it free here.

Related Articles:

1. Referral Marketing Stats 2025—Why Word-of-Mouth Now Crushes Ads

Referrals were the top lead source in your 2026 strategy. This post shows how to scale them using simple systems like double-sided rewards and one-click sharing.

2. Email Marketing Still Works Better Than You Think

If the 2026 article convinced you email is worth it, this one shows how to make it work—without needing fancy templates or marketing jargon.

3. 2025 Marketing Year in Review: What Actually Worked

Get the full context. This post looks back at the shifts that shaped 2026, including how search, content, and branding trends evolved.

4. 10 Best Content Types for Small Business Marketing

Not sure what kind of content to create first? This post breaks down the top 10 types and when to use each—so you don’t waste time guessing.

5. Content Marketing Boosts Revenue More Than Ads

This article proves with hard numbers why content beats ads long-term, and how to measure ROI even if you’re just starting out.

Frequently Asked Questions About Marketing for Small Business in 2026

1. What’s the best marketing strategy for a small business in 2026?

There’s no one-size-fits-all strategy, but businesses are seeing the best results by combining local SEO, email marketing, and short-form video. The key is to focus on a few high-ROI activities and do them consistently.

2. How much should a small business spend on marketing each month?

Over half of small businesses surveyed spend less than $1,000 a month. If that’s your range, focus on owned channels like SEO and email before pouring money into ads. Once you have data, increase spend where you’re seeing returns.

3. Does social media still work for small business marketing?

It does, but not as a lead engine. Social media is now best used for customer engagement, brand visibility, and support. Don’t expect most of your leads to come from social unless you’re running paid campaigns with strong targeting.

4. What’s the most cost-effective marketing channel in 2026?

Email remains the top performer, generating up to $42 for every $1 spent. It’s low-cost, easy to automate, and works well for nurturing leads and increasing repeat business.

5. Is video marketing worth it for small businesses?

Yes. Short-form video is one of the few channels still offering organic reach and high ROI. Even basic, unscripted videos filmed on your phone can build trust and drive conversions.

6. How do I know if my marketing is working?

Track where your leads come from. Use tools like Google Analytics, ask every new client how they found you, and review campaign performance monthly. Don’t rely on guesswork—let the numbers guide you.

7. What’s the difference between SEO and local SEO?

SEO helps your website rank on Google. Local SEO focuses on helping your business show up in map results and local searches. For service-based and location-based businesses, local SEO is often more important.

8. Should I use Google Ads or Facebook Ads?

Both can work, but they serve different purposes. Use Google Ads to capture people actively searching for your service. Use Facebook or Instagram Ads to build awareness and reach new audiences.

9. How do I get more customer reviews on Google?

Ask. Build it into your customer follow-up process. Use simple links, QR codes, or email templates. Aim for 5–10 reviews a month to maintain steady growth and improve local rankings.

10. What’s the best way to do marketing myself without hiring an agency?

Start with a clear message, focus on 2–3 channels, and use affordable tools like MailerLite, Canva, and Google Business Profile. Downloadthe 5 Minute Marketing Fix to get your message right before you spend time or money on anything else.