Small business owners are facing increasing challenges as confidence in the effectiveness of their marketing efforts declines, despite ramping up investments. According to Constant Contact’s 2025 Small Business Now report, only 18 percent of small and mid-sized businesses reported being “very confident” in their marketing outcomes, down from 27 percent the previous year. The report highlights a significant shift in marketing strategies, with 44 percent of businesses finding email to be their most effective channel, up from 23 percent in 2024. Additionally, nearly half of small and mid-sized businesses are adopting artificial intelligence in their marketing, which has led to improved performance metrics, particularly in email and social media campaigns. However, challenges remain, including data privacy concerns and limited time for marketing, with 42 percent of businesses having less than one hour per day to devote to these efforts. Economic pressures, including rising costs and tariffs, are also impacting operational strategies, with 44 percent of businesses citing increasing goods costs as their primary concern.
And The Verge notes that we are seeing impacts of tariffs. The recent changes in U.S. trade policy have led to significant disruptions in consumer markets, with the removal of the de minimis exemption causing increased costs for imported goods. As a result, U.S. consumers are now facing additional duties on products, leading to price hikes and the suspension of shipping for various items, including crafting supplies and luxury goods. For example, the luxury apparel retailer SSENSE has begun displaying duties at checkout, adding nearly $70 in taxes to a $326 hoodie. The impact is widespread, affecting industries from consumer electronics to crafting, with companies like Merchant & Mills announcing price increases of 15 percent due to new duties.
I want to note here as well that nearly half of all personal computers are still running Windows 10, despite the impending end of support set for October 2025. According to executives from Dell and HP, the transition to Windows 11 is ongoing but slower than in previous years, particularly among small and medium-sized businesses. Enrique Lores, CEO of HP, noted that many businesses may opt for Microsoft’s extended support packages for Windows 10 before making the upgrade, which will be available until October 2028, at escalating prices. Current trends show that consumer PC shipments have increased by 8 percent, while commercial shipments rose by 3 percent compared to the previous year. Artificial intelligence-enabled personal computers now make up about 25 percent of the market, exceeding earlier targets. Analysts expect shipments of these AI PCs to significantly increase, projecting they will represent more than half of the global market by 2026. However, rising costs due to tariffs on imported goods are also driving up average PC prices, as manufacturers seek to adapt their supply chains to mitigate financial impacts.
Why do we care?
So here’s the story: small businesses are dumping more cash into marketing… and feeling less confident it’s working. That’s a red flag. They’re using AI tools and leaning into email again, but most of them barely have an hour a day to touch marketing. Sound familiar? Yep—tools without strategy equals frustration.
Now layer in the new tariffs. That de minimis exemption? Gone. Suddenly $70 in duties on a hoodie. Doesn’t sound like much—until you realize your client’s new laptops just got 15% more expensive. That’s going to delay refreshes, stretch old gear, and make your quotes look bad unless you’re planning for it.
And about half of PCs are still on Windows 10. With end-of-support looming, you’d think we’d see a rush to upgrade. Nope. They’re dragging their feet, hoping for extended support. Meanwhile, AI PCs are growing fast—but they’re pricier, and tariffs aren’t helping.
Tthis is a chance for smart providers to lead. Help your clients rethink marketing, prep for tariff shocks, and plan real migration strategies.