New Survey Shows Value of Digital Advertising to Small and Mid-Sized Businesses in Illinois, as Illinois Lawmakers Propose New Digital Ad Tax

As Illinois legislators consider a new digital ad tax, a new survey from RXN in partnership with the Chicagoland Chamber of Commerce, finds that Illinois small- and medium-sized businesses (SMBs) leverage digital and social media advertising to compete, grow, and succeed.

New taxes on these services could make it harder and more expensive for SMBs to use digital and social media ads to find customers, sell products, and grow their companies.

Key findings from the survey show:

1) Digital advertising fuels Illinois SMB success

➤ 73% of Illinois SMB leaders use digital advertising

➤ Among Illinois SMB advertisers:
∘ 83% say digital ads are important to their company’s success
∘ 85% say digital ads help them reach new customers
∘ 82% say digital ads help them compete with larger companies
∘ 84% say digital ads deliver a better return on investment compared to traditional/offline ads (e.g., TV, radio, newspapers)

2) Social media platforms are a key advertising channel for Illinois businesses

➤ Among Illinois SMBs that pay for digital ads:
∘ 72% use Facebook
∘ 57% use YouTube
∘ 43% use Instagram
∘ 36% use TikTok

3) Online advertising platforms are a core growth engine for SMBs

➤ 79% of small business advertisers rely on digital ad platforms to connect with publishers and place ads
➤ 74% of small business advertisers rely on platforms to manage and negotiate ad placements

4) Raising prices on small businesses in a turbulent economy would be devastating

➤ Over half (51%) of Illinois SMB leaders rate the US economy as “not good”
➤ 71% say inflation and economic uncertainty are making it harder to successfully run their business
➤ 69% say digital tools are important to navigating inflation and economic uncertainty

Methodology

RXN conducted a survey of 200 Illinois-based small- and mid-sized business (SMB; <500 FT employees) leaders who sell products or services to businesses and/or consumers. The survey was conducted from November 7-December 17, 2025, and has a margin of error of +/- 6.9%. Every person surveyed is an SMB leader who is involved in making decisions that affect their entire business.