Local businesses are currently grappling with challenges such as inflation, supply chain disruptions, and evolving consumer behaviors. The Valpak 2025 Local Business Economic Outlook Report highlights how small enterprises are adjusting their marketing strategies to stay competitive.
In the podcast titled “Engaging Consumers: Data-Driven Local Advertising Strategies During Economic Challenges,” I spoke with Jay Loeffler, the Chief Sales Officer at Valpak, about these findings and how they relate to how businesses are engaging with today’s consumers. Notably, 44% of small business owners remain optimistic about the economy, with 61% expecting revenue growth and 55% planning expansion. Moreover, 78% emphasize the importance of marketing, showcasing a community focused on long-term resilience.
The Valpak survey focuses on businesses that have fewer than 20 employees and generate under $1 million in annual revenue. It highlights their innovative marketing strategies. Rather than raising prices, many of these businesses are choosing to refine their value propositions, such as promoting services instead of replacements.
While mobile advertising has a lead over direct mail in usage, successful businesses are leveraging multi-channel campaigns. Direct mail still boasts a 93% open rate; when combined with targeted digital strategies, response rates can be 5 to 8 times higher. Valpak’s data stack includes billions of attributes about U.S. households for precision targeting. Valpak has media partnerships with companies like Paramount, Disney, Warner Brothers and iHeart to help extend reach and effectiveness
Sophisticated data targeting is enhancing direct mail campaigns, and AI is helping small businesses make informed marketing and operational decisions. As Jay keenly notes, even amid economic uncertainty, there’s an opportunity to lead and guide advertising partners effectively.
As we enter the latter half of 2025, Jay and I were in agreement that businesses that embrace data-driven decision-making and multi-channel marketing will be better positioned to transform challenges into opportunities. This approach will strengthen customer relationships while effectively engaging consumers.
Listen to the full podcast here, and download more survey findings at Valpak.com/bia.
