Small and medium-sized business firms are expected to allocate more resources and increase spending for digital channels instead of traditional advertising.

In the U.S. alone, BIA/Kelsey estimated that spending on electronic media, internet marketing and digital business solutions will increase from more than $22 billion in 2010 to $40.2 billion in 2015.

The digital spending of small and medium business companies in the U.S. is projected to stretch to $16.6 billion by 2015 while budgets for ordinary advertising will be reduced to 30 per cent, according to the same forecast.

BIA/Kelsey said the remaining 70 per cent will be allocated to "digital (mobile, social, online directories, display, and digital outdoor), performance-based commerce (pay-per-click, deals, and couponing), and customer retention solutions (email, reputation and presence management, websites, social marketing, and calendaring/appointment-setting)."

This significant shift is obviously one of the major reasons why Google Inc., the world's largest Internet search company, rose as much as 7.1 per cent in extended trading Thursday after demand for online advertising vaulted third-quarter sales past analysts' estimates, based on reports by Bloomberg.

A survey conducted by Marketing Professionals in July indicated that spending plans for 2012 are moving towards social and mobile marketing communications channels, as "marketing experts and small businesses begin the process of preparing their budgets for the coming year."

The survey focused on marketing objectives, spending priorities, and spending plans.

Because of the phenomenal results and developments in the U.S., more entrepreneurs from all over the globe are expected to follow the examples of their U.S. counterparts.

The Bloomberg report pointed out that Chief Executive Officer Larry Page, who succeeded Eric Schmidt in April, is benefiting from Google's leadership in search advertising, even as the company pushes into new markets such as mobile, display and social networking.

A poll conducted by Hurwitz & Associates showed that the use of affordable Web-based marketing tools is playing a crucial role in helping businesses succeed.

"Making a few changes to incorporate more online tools into the marketing mix seems to be a key ingredient to small business success," Laurie McCabe, partner, Hurwitz & Associates explained.

The survey also disclosed that 80 per cent of small businesses looking forward to growth would most probably use or plan to make use of email marketing.