9 Reasons Why Small Businesses Need Digital Marketing

Digital marketing is everywhere and no business, small or large, can do without it.

Want to know why small businesses need digital marketing?

Because it’s the smart way to reach a huge audience without spending a fortune. Digital marketing is cost effective, has global reach and delivers fast results.

That’s probably why brands all over the world spend so much on digital marketing tactics.

The global digital marketing market size has been estimated at: $350 billion in 2020 and is expected to reach $786 billion by 2026.

Needless to say, digital marketing is the marketing of the future and has become indispensable. That’s why small businesses need digital marketing to reach and grow their target audience.

As if that wasn’t enough to convince you why small businesses need digital marketing, here are nine more reasons.

9 ways small businesses can benefit from digital marketing

1. Save tons of money

The first and most important reason why small companies need for digital marketing is that it is much more cost effective than traditional marketing.

You don’t have to spend money on ads and offline promotions, when you can market your products through social media practically for free.

Digital marketing tactics such as social media marketing, content marketing and e-mail marketing are very cost effective. And they can help you achieve multiple goals, whether you want to generate leads or just build brand awareness.

Social media marketing works as a lead generation tool for your small business. You can use the right marketing strategies to generate leads through social media platforms.

2. Reach people where they are most active

Another major reason small businesses need digital marketing is to reach their target audience on platforms where they are most active. You can use social media, podcasts, online blogs, or any other channel where your audience spends their time.

The best part is that you get their attention when they are actively engaged in an activity they enjoy, such as checking out their Instagram feed.

3. Get Fast Result

Digital marketing has helped marketers create extremely short sales funnels, thanks to audience targeting and impulse buying.

You can show the right people an ad on their favorite social media platform and drive them to purchase in minutes. In the same way you can make a viral video, or a promotional webinar and reach hundreds of thousands of people simultaneously.

Building brand awareness or reaching the masses is a matter of days (if not hours), not years.

4. Track and measure your marketing performance

Digital Marketing

If you put up a poster in your local town square, you won’t know how many people have come to your shop after seeing it. However, if you place an online ad, you can track exactly how many people saw it, clicked on it, and made a purchase.

Likewise, email marketing allows you to measure open rates, response ratesand easily leads with the help from online marketing tools

That’s another reason why small businesses need digital marketing: to measure the performance of their digital marketing campaigns.

5. Reach a global audience

One of the critical reasons why small businesses need digital marketing is to reach global audiences quickly and efficiently.

You don’t need to run multiple local campaigns. Instead, a single digital campaign can help you reach your target audience in different countries.

6. Use a mix of multiple techniques

With digital marketing, small businesses don’t have to run separate campaigns to achieve different goals. You can easily use a mix of digital marketing techniques in one integrated campaign that achieves multiple goals.

For example, you can sales funnel that starts with generic techniques such as social media marketing and end up with high-converting SEO landing pages. You would use content marketing at different stages and maybe even use influencers or run ads.

The reason small businesses need digital marketing is because they can improve their team productivity and the efficiency of their campaigns by going digital.

7. Create hyper-targeted campaigns

Online analytics and data tracking have made it possible to create hyper-targeted, personalized marketing campaigns like never before. You can choose exactly who sees your ads or what action or trigger determines when they see your ads.

This applies not only to digital advertising, but also to other digital marketing tactics.

you can use social media analytics and listening tools to understand your audience, what types of content they like and when they are most active. You can understand how your site visitors behave, which pages they interact with, and where they leave your site.

With such deep insights, you can easily create results-oriented campaigns that are tailored to a specific target group or audience.

8. Build stronger customer relationships

One of the main reasons small businesses need digital marketing is to better engage with their customers.

While it is important for all businesses to have strong customer relationships, it is especially important for small businesses. You need to stay in touch with your customers and understand their needs, preferences and challenges.

Digital marketing methods like social media marketing and email marketing allow you to do just that. You can send them regular emails to recommend products, provide updates, or just ask for feedback.

Social media takes it one step further as you can interact directly with your audience, answer questions, solve problems and more.

Never in the history of marketing has it been possible for brands to stay in such direct contact with their customers as it is today. Use that to build strong customer relationships.

9. Stay up to date with the latest trends

Reasons to market small businesses

Last but not least, the reason why small businesses need digital marketing is to stay on top of the latest trends. If you’re not active online, you might as well live in a silo, not knowing what’s going on in the world.

However, if you’re active on online platforms, you’ll know which direction the wind is blowing from and exactly how to grab the attention of your audience. In such a dynamic world, digital marketing is the only way to keep up with the changing needs of your customers.

Final Thoughts

In the current era, the question is not why small businesses need digital marketing, but how to use it to their advantage.

Hopefully, the nine reasons mentioned above are enough to convince you why small businesses need digital marketing. Now it’s up to you to use digital marketing to achieve your business goals, if you’re not already doing so. Good luck!


Shreya has been with australiabusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider australiabusinessblog.com, Shreya seeks to understand an audience before creating memorable, persuasive copy.