62 Percent of U.S. Small Business Owners Anticipate Strong Holiday Sales Season, According to Constant Contact Survey.

Small businesses expect strong holiday sales and increased online shopping; Majority will use email marketing to promote seasonal offerings

Respondents show decreasing concern about effect of energy costs

WALTHAM, Mass. -- Consumers will spread the holiday cheer this year, say U.S. small business owners. In fact, according to Constant Contact's 2nd Annual 2006 Small Business Holiday Outlook(a) survey, 62 percent of more than 1,500 U.S. small businesses said they anticipate a strong holiday season, a rise over last year's survey (60 percent). Constant Contact (www.constantcontact.com) is the leading email marketing service for small businesses, associations, and nonprofits.

This optimism is likely good news for overall small business profits this year, as 78 percent of U.S. small businesses owners surveyed said the December holidays are important to their yearly earnings. To better serve the expected high turnout of holiday shoppers, 68 percent of small businesses will run seasonal promotions (mostly online), and 20 percent have hired or will hire additional employees.

"This optimism from small business owners is great news for the upcoming holiday season and the overall health of the U.S. economy," said Gail Goodman, CEO of Constant Contact. "It's also encouraging to see the increased importance of online marketing for today's small businesses, as they continue to look for new ways to stay in front of current and prospective customers."

The majority of small businesses (81 percent) also expect consumers to make more holiday purchases online in 2006. To capitalize on this, most small businesses will use online marketing methods to promote their holiday offerings. In fact, of the 68 percent surveyed that will run seasonal promotions - 82 percent will use email marketing in their promotional mix, 50 percent will use other online marketing tactics (i.e. online advertising, paid search), and 35 percent will use direct mail.

Small business owners this year are also far less concerned about the effect of high energy costs, with only 22 percent of them very concerned about its effect on their business (compared to 35 percent last year). In addition, 56 percent of small business owners think that high energy costs will lead to more consumers making online purchases this year, a marked decrease from last year's survey (65 percent).

Sample questions and results from Constant Contact's 2006 Holiday Small Business Outlook survey include the following:

"Do you anticipate a strong holiday season in sales for your business?"
Yes                                                                      62%
No                                                                       38%
[TABLE OMITTED]
"Are you planning any promotional offers for the December holidays?"
Yes                                                                   68%
No                                                                    32%
[TABLE OMITTED]
[TABLE OMITTED]

For more information about the survey or for additional results, please contact Kevin Mullins at 781-472-6206, or by email at [e-mail].

(a) The 2006 Small Business Holiday Outlook survey was conducted from September 14th - October 11th, 2006 through targeted online distribution to U.S. small businesses who are current customers of Constant Contact. Results were recorded from more than 1,500 respondents.

About Constant Contact

Launched in 1998 and headquartered in Waltham, Mass., Constant Contact is the leading email marketing service for small businesses, associations, and nonprofits. With more than 75,000 customers today, Constant Contact helps small businesses and organizations succeed in building lasting customer relationships through professional email communications. To learn more, please visit www.constantcontact.com or call [phone].

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