Due to the current economic climate, Small business are closing at an alarming rate. Sometimes, the survival or failure of a business depends on how effectively and efficiently its marketing is done. Unfortunately, marketing often gets cut first when budgeting – but this should be avoided! Innovative businesses understand this and allocate their marketing dollars toward more cost-effective and targeted channels like online advertising for maximum impact.
Why would a company want to market online? Firstly, there is greater access to consumers and greater growth potential. According to Google, over 85% of shoppers begin their search online first when looking for products and services – totaling 16 billion search queries each month. Furthermore, out of the 20 million registered businesses in the U.S., only 5-10% have any digital presence, and only a fraction are actively marketing their business online.
Online marketing is not just limited to having a website and marketing it or emailing prospects and clients. There has also been an increasingly strong push toward using social media. Businesses that operate based on a business-to-consumer model will find that social media platforms such as Facebook and Twitter provide an effective platform to attract new clients and stay in touch with existing ones. Social media sites collect personal consumer data at signup, which businesses can use to target their ads at a fraction of the cost found on major search engines. Furthermore, posting relevant and timely updates allows companies to establish themselves as experts within their niche – and who wouldn’t want to be known as an expert?
With such an expansive untapped marketing space, small businesses have the chance to expand rapidly. They no longer need to rely on customers in their immediate vicinity – their reach is limited by what they decide. With the right marketing strategy, their struggling shop could quickly become profitable.
A Shifting Landscape
In November 2010, Ad-ology Research surveyed over 750 small businesses to determine their marketing budget for 2011. The results revealed that more small businesses will allocate funds toward email (72.7% in 2011 vs. 56.6% in 2010) and website development (70.5% vs. 57.7% in 2010).
This tells us that online marketing is becoming the dominant method companies use to advertise their goods and services. Traditional forms of promotion will still exist – direct mail pieces, flyers printed, telephone directories used, billboards displayed – but overall, there will be significant growth in the digital marketplace.
Benefits of Online Marketing
Online marketing provides numerous advantages.
Why would a company want to market online? Firstly, there is greater access to consumers and greater growth potential. According to Google, over 85% of shoppers begin their search online first when looking for products and services – totaling 16 billion search queries each month. Furthermore, out of the 20 million registered businesses in the U.S., only 5-10% have any digital presence, and only a fraction are actively marketing their business online.
Online marketing is not just limited to having a website and marketing it or emailing prospects and clients. There has also been an increasingly strong push toward using social media. Businesses that operate based on a business-to-consumer model will find that social media platforms such as Facebook and Twitter provide an effective platform to attract new clients and stay in touch with existing ones. Social media sites collect personal consumer data at signup, which businesses can use to target their ads at a fraction of the cost found on major search engines. Furthermore, posting relevant and timely updates allows companies to establish themselves as experts within their niche – and who wouldn’t want to be known as an expert?
With such an expansive untapped marketing space, small businesses have the chance to expand rapidly. They no longer need to rely on customers in their immediate vicinity – their reach is limited by what they decide. With the right marketing strategy, their struggling shop could quickly become profitable.
Analyzing Costs
Cost comparisons always boil down to numbers and dollars. Small businesses using traditional marketing can spend over $10,000 on a direct mail campaign, see less than 1% response, and have a lower closing rate yet still consider it a success. With that same $10,000 invested in online marketing, they could expect greater exposure, an increased contact rate, and improved closing rates since they would target specific consumers actively searching for their goods and services. One company I’ve collaborated with wanted exposure for their website. After just one month and spending under $1,000, their web traffic increased by over 20,000%. Another client experienced a 500% boost in web traffic when they implemented an email campaign.
Online marketing is a powerful tool, allowing small businesses to compete and surpass their rivals. Those who take advantage of these opportunities have greater odds of success than those using more traditional forms of promotion. As the landscape changes and new opportunities present, what will your small business do to stay ahead?
