The latest findings from the "Local Commerce Monitor" (LCM – Wave 17), BIA/Kelsey's ongoing study of the advertising behaviors of small and medium-sized businesses (SMBs), indicate SMBs are increasingly embracing mobile and social platforms for improving operational efficiencies and promotion. In particular, mobile payments are gaining significant traction with SMBs, with 40 percent of those surveyed stating they now accept payments at the point of sale with a mobile credit card reader attached to a smartphone or tablet (e.g., PayPal Here, Square, etc.). Another 16 percent plan to add this capability within the next 12 months.

SMBs are also turning to mobile to get customers in the door, with 32 percent of the SMBs surveyed stating they are using some form of mobile advertising to promote their businesses, up from 28 percent in 2012.

"Mobile continues to make impressive inroads into the SMB market, as both a marketing vehicle and as an element of the business infrastructure," said Steve Marshall, director of research, BIA/Kelsey. "A closer look at the data shows adoption of mobile and social varies across SMB industry sectors. The LCM data reveals professional and home and trade services are embracing mobile in a big way, with service providers essentially becoming walking POS terminals."

Nearly three-quarters of SMBs surveyed (72 percent) indicated they are using social media to promote their businesses. In addition, 52 percent of SMBs surveyed have a Facebook page for their business and 25 percent have a Google+ Local page.

"Together, mobile and social tools are transforming the way SMBs acquire and retain customers." added Marshall. "With the heavy use of social media, SMB marketing is quickly becoming a two-way engagement rather than a one-way promotion."

Many SMBs gave themselves high marks on their level of social engagement. When asked how "engaged" their businesses are with their customers on social media (e.g., responding to online comments, regular blogging or tweeting, regular updating of their Facebook page, offering a loyalty program), 66 percent stated they are "extremely engaged" or "very engaged."