by Frank Vella, CEO of Constant contact
When times are tough, the old playbook says to tighten your belt and cut costs wherever possible. But small businesses in 2026 are turning the tables.
For Constant contactIn ‘s latest Small Business Now report, we surveyed more than 1,500 small business owners to understand their marketing concerns and strategies for 2026. Although they see today’s economic obstacles loud and clear, the vast majority refuse to pump the brakes. Instead of cutting back, they are doubling their spending.
Instead of cutting their marketing budgets, small businesses are stepping on the accelerator: 68% of small business owners expect their marketing budgets to increase in 2026, while 74% expect the time they spend on marketing to increase this year.
The message is clear: the winning strategy is not to hide until the storm has passed. It’s about investing your time and money into the growth engine of your business – your marketing – to come out stronger on the other side.
Invest in what already works
So where are all these investments going? Money flows directly into the proven, high-impact digital channels that small businesses believe in most.
When we asked them which channels they hoped to provide the most value this year, the answer was decisive: 68% expect social media (organic posts and paid ads) to be their most valuable channel, followed by email marketing at 41%.
The takeaway recipe is simple. The smartest businesses focus their efforts on a power duo of social media and email, channels they trust to deliver measurable results.
AI becomes a practical growth tool
And there’s a new tool in the toolbox that helps them do more with less. Fifty-four percent of small businesses are already using AI and 27% plan to start this year, relying on it for tasks such as analyzing trending data (45%), writing emails or other content (44%), and creating images (40%). Companies don’t replace their strategy: they improve it.
Your 2026 Playbook: How to Double Down the Right Way
You’ve seen what other small businesses are doing. Here’s how to turn this information into your own action plan.
Tip #1: Master your high value-added channels to be seen.
Small businesses rely on social media and email marketing because they believe these channels will provide the most value. It’s not just about using them, but mastering them.
Don’t just post, connect. Don’t just send emails, build relationships. This is where your marketing investment will be hardest, so make every dollar (and every minute) count by focusing your energy on what works and getting the word out about your business.
Tip #2: Make AI your new assistant.
One of the biggest obstacles for any small business owner is the constant need to create new content. We know the pain of staring at a blank page when you have a million other things to do.
Consider joining the 81% of small businesses already adopting or planning to use AI this year, and use it to solve the “blank pages” problem for good.
Ask them to analyze trends to find out what your audience wants to hear. Or let AI write a first draft of your next email newsletter, turning an hour of work into 10 minutes of editing.
Think of AI as your assistant freeing you from tedious manual tasks so you can focus on overall strategy.
Tip #3: Put your marketing on autopilot.
Working harder is not the answer; working smarter is. With 50% of small businesses prioritizing efficiency, the goal is to get more done with less manual effort.
This means having a system that works for you even when you’re not working. Use a single platform that can streamline and automate your high-value channels. Instead of switching between tools, manage your social media and email marketing in one place.
Then use automation to handle repetitive tasks. Set up a welcome series for new subscribers, automatically send abandoned cart reminders, or schedule a month’s worth of social media posts all at once.
Realism meets strategic determination
Even though small businesses are under economic pressure, they’re not just hoping for the best; they actively plan for success. Fifty percent prioritize “improving efficiency” and 36% create or refine their marketing strategy to ensure their success in the coming year.
What does this tell us? Small business owners have a healthy dose of realism, but an even greater dose of strategic determination. They know the environment is difficult, but they rely on their ability to work smarter to succeed.
2026 is not a year to stay away
The message from small businesses is loud and clear: 2026 is not a year to sit back. Despite economic challenges, the prevailing strategy is to invest strategically instead of retreating.
If you’re feeling the pressure of rising costs, know that you’re not alone. But more importantly, know that you are in good company when you choose to face these challenges head on and invest in growing your business.
Frank Vella is the CEO of Constant contactthe leading digital marketing and automation platform for small businesses and nonprofits. Frank’s past successes stem from his passion for building customer-centric businesses. He has built effective teams at technology companies of varying sizes globally, including Microsoft, GE Capital, Virtustream and BlueJeans, among others.
