Proposed digital advertising tax threatens small businesses like mine • Nebraska Examiner

Eighteen years ago, my friend and I embarked on a journey to start a business selling handmade, custom-churned ice cream. Our unique flavors, such as red velvet cake and maple blonde brownie, quickly gained popularity and turned our old-fashioned parlor into a beloved spot in Omaha. However, our biggest success came from selling our ice cream online. By marketing our products as special-occasion gifts that can be personalized with messages and packaging designs, we have been able to reach customers all across the United States. In fact, we now ship over 400,000 personalized ice-cream pints annually, with online sales accounting for 90% of our revenues.

Despite the success of our online business, we are facing challenges that threaten its sustainability. Rising shipping and ingredient costs, including record-high cocoa prices, have already put a strain on our operations. The proposed tax on digital ads in Nebraska adds another layer of concern for us. Affordable digital advertising has been a crucial component of our marketing strategy, allowing us to target the right audience and maximize our sales with limited resources. If this tax is implemented, it would significantly increase our advertising costs and impact our ability to grow our business, retain employees, and keep our brick-and-mortar store open.

At a time when federal legislation like the AMERICA Act is also threatening to make digital advertising more expensive and less effective, small specialty businesses like ours are facing a double whammy. While lawmakers may believe that these measures target big tech companies, the reality is that small local businesses are the ones that will bear the brunt of these changes. Unlike larger corporations with hefty advertising budgets, we rely on affordable digital ads to reach our target audience and drive sales.

Platforms like Facebook, Google, and Instagram have been invaluable partners in helping us reach potential customers online. Their advanced data analytics and ad technologies enable us to tailor our advertising to specific demographics and measure the effectiveness of our campaigns. By optimizing our ad spend and focusing on the most successful strategies, we can increase our revenues, reduce marketing costs, and ultimately grow our business.

Affordable digital ads are not just a luxury for small businesses like ours – they are a necessity for survival in today’s digital landscape. The proposed tax on digital ads in Nebraska threatens to undermine the growth and competitiveness of small businesses across the state. I urge legislators to consider the impact of this tax on businesses like mine and to reject any measures that would hinder our ability to thrive and contribute to our local economy. It is crucial that we support small businesses and create an environment where they can continue to innovate, create jobs, and serve their communities.