Small businesses in the United States are facing higher costs, tighter margins, and shifting customer expectations. Yet despite these pressures, most owners are choosing consistency over drastic changes. They are sticking with what works — email, video, and measured investments in AI — while carefully controlling what they can.
This snapshot of U.S. small business marketing in 2025 comes from the State of Small Business Marketing Report by Constant Contact and Ascend2. The report surveyed more than 2,500 small business decision-makers globally, including a deep look at the U.S. market.
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Key Takeaways
- Confidence is low: Only 18% of U.S. small businesses feel “very confident” in their marketing effectiveness.
- Email remains the backbone: 41% say email is their most effective marketing channel.
- AI adoption is steady but cautious: 37% of U.S. SMBs use AI, mainly for writing emails and posts.
- Video is growing: More than 80% of U.S. SMBs use video, especially for storytelling and product promotion.
- Consistency rules: Half of U.S. small businesses haven’t changed their marketing budgets despite rising costs.
Email: Still the Core Channel
Email marketing continues to be the most reliable channel for U.S. small businesses. While social media trends shift and algorithms change, email delivers predictable engagement. According to the report, 41% of U.S. SMBs identify email as their most effective channel.
Challenges remain, though. Business owners cite struggles with getting people to open messages, crafting the right message, and keeping campaigns consistent. This points to the need for better segmentation, personalization, and ongoing testing.
Video: Building Connection and Trust
Video is no longer optional. More than 80% of U.S. small businesses now use video as part of their marketing strategy. From short testimonials and behind-the-scenes clips to detailed product walk-throughs, video helps SMBs create authentic connections with customers.
The most confident marketers are using video across multiple touchpoints. Instead of treating video as a one-off project, they are weaving it into campaigns, newsletters, and social media content.
AI: Helpful but Not a Silver Bullet
About 37% of U.S. SMBs use AI in marketing. The most common uses are writing emails and social posts (32%), creating visuals (21%), and analyzing data (18%).
But AI adoption comes with hesitation. Business owners worry about data privacy, accuracy, and whether AI-generated content matches their brand voice. The cautious approach suggests that U.S. SMBs see AI as a support tool, not a replacement for human creativity.
Economic Pressure: A Push for Control
The report highlights how U.S. small businesses are navigating economic stress. About a quarter raised prices in 2025, while more than a third made no pricing changes. Nearly half say supply chain issues and tariffs have not impacted their sourcing, showing resilience in uncertain times.
When it comes to marketing budgets, half of U.S. SMBs haven’t made changes. Rather than chase the latest trend, many are choosing to stay consistent and refine what they already know works.
What This Means for Small Business Owners
The data shows a cautious but intentional approach. Small businesses don’t need to reinvent their marketing in 2025. Instead, they should focus on three things:
- Double down on email — Use segmentation, personalization, and testing to make email more effective.
- Invest in video storytelling — Even simple, authentic videos can build trust and drive sales.
- Experiment with AI carefully — Use it to save time, but always review for accuracy and brand fit.
The bottom line: U.S. small businesses are betting on consistency. By sticking with proven tools like email and video while gradually testing AI, they’re finding stability in a challenging economy.