Borrell Data Underscores Why ‘Free’ Marketing Often Falls Flat.

Everyone likes free, but a survey of local ad buyers by Borrell Associates finds for many small and medium sized businesses their perception use social media is tied to whether they are spending any dollars. There is also a warning for why radio stations may not want to give too many bonus spots or other freebies to buyers.

The Borrell data shows among those who rate social media either “extremely” or “very” effective, free users find it significantly less impactful. Just 18% of YouTube free users give the video platform high marks for marketing, which is a third of the number of paid users who say the same. And just half as many local advertisers using Instagram to promote their brand label it as effective, as paid users.

“Local advertisers consider social media to be very effective for marketing That's probably why it's the most used medium for marketing, with 80% of businesses saying they use it,” says Center For Sales Strategy CEO Matt Sunshine. In Borrell’s summer chart-of-the-week series vlog post, he points out there's a big difference between social and other forms of marketing, like radio, TV, outdoor and search engine marketing since you can use it without having to pay for it. But Sunshine says that also leads to an “extreme imbalance” between the perceived effectiveness of free and paid social marketing.

“In all cases, ratings are roughly two- to four-times higher for those who paid to advertise or paid to boost a posting,” he says. “This is absolute stark proof that, while attractive, free forms of marketing can be helpful, but hold very low value when compared with what you get when you actually invest. It's a lesson, not just for social media, but for all forms of marketing.”

The survey findings are from Borrell’s survey of local ad buyers this spring. It shows radio still matters in media plans, even if it isn’t one of the trendier choices named most effective, or most likely to attract greater interest or increased spending. AM/FM radio lands among the top 10 ad formats respondents consider very or extremely effective. Topping the list of most effective ad media are search engine marketing, social media, and streaming video/OTT, which are also the top three where agencies see increased interest and more spending in 2025.

When ad buyers were asked where they plan to invest more this year, 8% also named AM/FM radio. But among businesses established since 2020 are nearly twice as likely as those established before 2020 to increase spend on AM/FM radio this year.