A new report from Borrell Associates concludes that the Internet has become more of an advertising utility than an ad medium. Focusing on that point, the media research firm estimates local businesses are spending two and a half times more on Web marketing services than on online banners, pay-per-click keywords and video ads. The “What SMBs Spend on Digital Marketing Services” report shows these businesses are dedicating 72% of their total online budgets to marketing services, 15.6% to online promotions, and just 12.4% to online advertising.

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