Challenges and Prospects for Small Business Development in the Usa in the Context of High Advertising Costs
Year: 2025
Type: article
Abstract: The main purpose of the article is to study the challenges and tools for minimizing their negative impact on the development of small businesses in the United States in the context of the rapid growth of the cost of digital advertising. This study includes an analysis of the impact of advertising inflation, market concentration in the hands of large technology platforms, as well as changes in consumer patterns on the marketing activity of small businesses. The paper uses a mixed methodology that combines quantitative analysis of statistical data with a qualitative study of promotion practices. In particular, the author investigated ways to determine the most effective channels for business promotion, cases of using artificial intelligence in content creation, as well as the adaptation of small businesses to the conditions of a highly competitive advertising environment. The focus of the article is on the limited financial and time resources of small businesses, the opacity of advertising platform algorithms, the decline in organic reach in social networks, and the inaccessibility of high-quality analytics. Aspects such as the growth of customer acquisition costs, competition with large brands, the effectiveness of alternative promotion channels, the role of micro-influencers, as well as the strategic importance of local and hyperlocal marketing are considered. Attention is paid to the author's methodology for reducing the cost of creating video content, which demonstrates the potential for scaling with minimal costs through automation and creativity. The results obtained confirm the relevance of adaptive marketing strategies focused on saving resources and using innovative digital tools. The proposed approaches can be used as a basis for further practical solutions in the field of small business promotion in the context of advertising inflation. Finally, the author concludes this study with the conclusion that the sustainability and competitiveness of small businesses in the digital age increasingly depend not on the volume of advertising budgets, but on the ability to flexibly adapt to a changing environment, strategically use available tools and develop digital literacy of entrepreneurs.
Source: Economics & Education
Author: Vladyslav Tsaruk
Institution: State University of Trade and Economics
Language: English
Subfield: Demography
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7128796917