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Survey: 7 out of 10 Latvian Entrepreneurs are Feeling Optimistic about Business Growth in 2019

The survey of entrepreneurs carried out at the end of the year shows that they have optimistic views concerning the next year and that the budgets of companies’ digital advertising is set to increase. These findings were identified during the survey carried out in December 2018 by, the Latvian Chamber of Commerce and Industry, as well as the Latvian Association of Digital Experts.

When asked, whether the entrepreneurs planned to increase the company’s turnover in the next year, 76% of respondents were positive and answered “yes”. It was also found out during the survey that 54% plan to allocate more funds to their digital budget in 2019, but for offline media, only 28% of respondents planned to increase the budget. In contrary, 25% of respondents said that they plan to spend fewer funds on traditional media.

Out of all the digital channels, it is the budget for social networks that is expected to see the most considerable increase in 2019 with more than half of the entrepreneurs involved in the survey (53%) planning to increase their advertising for increased visibility in social media budget for communication in social media.

The least amount of growth for the advertising budget in 2019 is expected to be for banner ads (+15%). Entrepreneurs’ plans can be explained by the fact that the efficiency of banner ads decreases year by year. Therefore, fewer entrepreneurs are ready to increase their advertising budget for this channel.

Three years ago performed a similar study and found out then that the least increase of budget the entrepreneurs planned was in relation to YouTube video ads. In comparison, this year the entrepreneurs are more optimistic about this advertising channel as it will have a +21% increase in advertising budget, a considerable increase since 2015.

YouTube video ads are a comparatively new opportunity for Latvian entrepreneurs, where there is no fierce competition. For example, the payment for one view of a video clip may cost only one cent,” points out certified Google trainer Dr. Sergejs Volvenkins, head of the digital department at

”When analyzing the research results, it is possible to find a surprising tendency that already for several years there has been an increase plan for the budget in relation to advertising activities (+66%) and for the improvement of websites, namely, for their adjustment for sales online (+34%). The focus on websites indicates that entrepreneurs value the role of their websites more and more within the process of communication and sales. In its turn, the focus on analytics shows that the entrepreneurs would like to know precisely how efficient their ad is, especially when advertising becomes more expensive which sees the budget also increase. The response to this cost versus affectivity challenge is the more serious approach to the advertising analysis and to the improvement of the website,” explains Dr. S. Volvenkins.

About the Survey

The survey was carried out in December 2018. In total, answers were received from 408 respondents out of which 74% said they are the managers or owners of companies, 10% are marketing managers or specialists and 8% are the managers of other departments. The turnover of 44% of companies involved in the survey is up to EUR 500,000 with 33% falling within the EUR 500,000 to EUR 3 million range and 11% within the EUR 3 million to EUR 10 million range. The companies turnover of which exceeded EUR 10 million, constituted 11% of respondents.

About is a full-service digital marketing agency that promotes its clients’ products/services in more than 20 countries. The company was founded in Latvia in 2013. During its operation has received several awards from Google for excellent achievements while managing advertisements in the digital environment. The total turnover of company’s clients on the Internet in 2017 constituted around 92 million euro (Google Analytics data regarding the clients of The results of regular scientific studies performed by are presented at many international scientific conferences with Dr.Sergejs Volvenkins having been the head of sections at several international scientific conferences. Within a period of four years, the team of the company has, in the field of digital marketing, educated more than a thousand people of different industries and levels.

About the Latvian Chamber of Commerce and Industry

The Latvian Chamber of Commerce and Industry (LCCI) is the largest society of entrepreneurs in Latvia, uniting more than 2500 members of micro, small, medium and large enterprises, associations, city entrepreneurs’ clubs and other entrepreneurs’ associations of all regions and industries. The society represents the entrepreneurs’ interests, as well as provides services so that Latvia has companies that excel in the outstanding business environment. Its main fields of activity are business environment, competitiveness of companies, and export. The Latvian Chamber of Commerce and Industry was founded on 21 December 1934 and is the member of the Association of European Chambers of Commerce and Industry (EUROCHAMBRES) and the International Chamber of Commerce (ICC).

About the Latvian Association of Digital Experts

The Latvian Association of Digital Experts (LADE) unites the professionals of the field, including persons for whom digital marketing is a profession or a significant field of interest. The aim of the association is to increase the level of digital experts’ competence. The association was founded in 2016 and since then it provides regular practical classes, as well as the events of the exchange of experts’ experience.