Three-quarters of small businesses will increase their spending on e-mail marketing in 2010, while nearly seven in 10 will put more dollars toward social media, according to VerticalResponse data.

Almost all businesses with 500 or fewer employees will use e-mail marketing next year—just 3.8% said they would not. On the opposite side of the spectrum, more than 70% would not use TV or radio advertising.

Amid the popularity of e-mail and social media marketing, fewer small businesses told VerticalResponse they were dialing up their search efforts, and more than one-half would do no banner advertising in 2010.

“We’re encouraged that small businesses continue to allocate portions of their budget to marketing channels such as email and social media, despite the downturn in the economic climate,” said VerticalResponse CEO and founder Janine Popick, in a statement. But, she added, “marketers need to help small businesses to see the value of integrating search engine marketing such as Google, Yahoo and Bing into their campaigns.”

Campaigner and Hurwitz & Associates studied small businesses with 20 employees or fewer in July 2009 and found 28% of those that used e-mail marketing considered it an inexpensive and effective way to reach new customers. One-quarter said it generated a quick response—so they could tell if a campaign was working.

There was some disconnect in the perceptions of current e-mail marketers versus small businesses who planned to begin e-mail marketing in the next year. Notably, current users were more impressed with fast response and good ROI, and less likely to cite as a benefit ease of reaching out to prospects.

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Check out today’s other article, “Celebrating with Cautious Optimism This Holiday Shopping Season.”