Digital Marketing for Small Businesses: Overview of Main Benefits

Statistically, global digital advertising spending reached $458.16 billion in 2021. This means that digital marketing is a must-have tool for all business owners that want to improve their revenue. Whether you have a small business or you are the owner of a big company, you simply can’t do without digital marketing tools today. Just look around and you’ll see that digital technology has changed the world we live in. The way businesses operate has also changed. All techniques that were used 5-10 years ago don’t work anymore. This industry is dynamic and rapidly changing. If you want to make the most out of your digital ads, you have to follow the latest trends in this niche.

Today, digital marketing plays an important role in running your online business. If a company wants to increase sales and overall growth, it simply can’t do without powerful and effective digital marketing campaigns.

In this comprehensive post, we’ll look closer at all the benefits of small business digital marketing. We’ll define the meaning of this term, the importance of digital marketing, and the main reasons why you need to opt for it. Get comfortable and have a look!

Table of Contents

What Is Digital Marketing?

Let’s begin with the basics and define what digital marketing for small businesses is. It’s a kind of art that allows you to attract new visitors and convert them into real customers that will buy your products or services. This marketing form is based on electronic devices—modern users are contingent on their smartphones, tablets, wearables, TVs, laptops, and computers, and the only way to reach your targeted audience is to use these devices. 

Small business internet marketing uses different strategies to find potential customers. Simply put, it’s the type of marketing that is done on the web. Here are the most effective and popular methods that are used in this area:

  • Search engine optimization
  • Affiliate marketing
  • Pay-per-click
  • Inbound marketing
  • Content marketing
  • Email marketing
  • Social media marketing
  • Search engine reputation management
  • Influencer marketing

And it’s up to you to decide which digital channel to use to develop your brand awareness. You can use either one channel or opt for a few of them. The performance of all these methods is measurable and powerful.

Whether you have a small local business or you are a CEO of a big enterprise, your business will undoubtedly benefit from digital marketing strategies. Experts say that small business digital marketing can influence people’s habits, interactions, and lifestyles. Let’s see how this happens:

  • With the rapidly growing accessibility of the internet, the number of users going online is also growing. So far, we have 4,66 billion active internet users and 92% of them access the internet via mobile devices. The vast majority of these users can be your potential clients.
  • 82% of people use their smartphones to search online before they make a decision to buy a product or service.
  • 50% of users prefer a particular brand if its name appears more than once during their online search.

These figures prove that the influence of digital marketing is rapidly growing, and so far, it’s a must-have tool for running your business online!

How Digital Marketing Helps Small Businesses

So, you have a small local shop where you sell unique handmade items, but why do you need digital marketing? What are the benefits of this investment? 

First, you have to remember that digital marketing includes a few tactics to connect your brand with your potential customers. And if you run a small business, it’s a challenge to understand how to make it work for you. However, you can easily tackle that challenge by hiring a professional marketer or an outsourcing company that can help you build the right marketing strategy.

Nevertheless, it’s one of the most effective ways for a small company to reach out to clients. It’s the only method that allows you to come into the spotlight as the best company that sells things or services. With the help of digital marketing, you can build trust among your audience, get more customers, improve ROI, and make your business grow!

Benefits of Digital Marketing for Small Businesses 

Gradually, we are moving to the most interesting section of our review—what are the main benefits of digital marketing for small companies? Why should you invest in these digital tools? Let’s review the main reasons that might persuade you to opt for this powerful tool for your business. 

Provide Equal Opportunities for Everyone

It doesn’t matter what the size of your company is. Digital marketing for SMB is available for everyone. It’s not something that you can’t reach, even if your budget is limited. Even a small business can easily reach its target audience through the use of various strategies. Digital marketing is the space where everyone is equal. This is where small businesses can compete with big companies by leveraging various marketing tools and strategies. The selection of digital marketing tools is huge, so you can choose the one that suits your business needs—and most of all, your budget.

Target the Right Audience

As we have already mentioned, the internet has over 4 billion users, and most of them use their smartphones. So far, every single social media platform is a huge pool of potential clients that might be interested in your products or services. You just need to find them with the help of catchy online ads and the right marketing strategy.

To get the right audience, you can use the following targeting tools:

  • Google ads
  • Facebook custom audiences and retargeting
  • LinkedIn for keyword research
  • Search Engine Optimization


A few years ago, business owners used printed flyers, rented billboards, or placed banners to let people know about their business. However, this costs a lot. Some business owners use these strategies even today, especially in small towns. Nevertheless, the main downside of this technique is that it’s impossible to measure its effectiveness.

Even today, it is more effective and cheaper to invest in a digital marketing campaign instead of printing advertising flyers. If you want to get the most out of your campaign, you have to opt for the services of professional marketers or a trusted digital agency. Don’t deal with amateurs that lack experience in this area.

Overall, thanks to a massive collection of digital marketing tools and fantastic opportunities provided by them, business owners can quickly measure the effectiveness of ads, make changes, stop ineffective campaigns, and invest more in online ads that work well.

Build Brand Recognition

Another reason to choose online marketing for a small business is brand recognition. It allows you to introduce your products or services to people. In doing so, they will learn more about your company, concept, products, or services that you sell. It will help them remember your logo and brand, and next time, when a user sees the logo of your company, he or she is more likely to interact with your brand. Simply put, digital marketing tools enable people to connect emotionally with your company. 

Provide You With Exposure

If you want to get more customers, you need to remember that online visibility is of utmost importance—especially today, when the market is overloaded with competitors. If you have a small company, digital marketing tools allow you to build your own exposure space on your platform and concentrate on your potential clients online.

Increase Revenue

Surely, the services of digital marketers aren’t cheap. However, the main reason why business owners need to opt for digital marketing campaigns is the opportunity to get more conversions. The higher conversion rates, the better your revenue. Business owners that opt for digital marketing tools get more revenue compared to other companies that don’t use social media marketing. A combination of various marketing strategies allows you to create a better response and as a result, increase your revenue.

Give Measurable Results

Remember that the performance of each marketing channel is measurable and therefore you can easily evaluate the effectiveness of your campaign across each of them. After your advertising campaign is launched, you can easily check out the results and evaluate its performance. If it’s poor, you can switch this ad off. You’ll see what products or services are appreciated by your audience and which of them are less popular.

Getting Started on Digital Marketing for Small Businesses

So, how do you get started? How do you run the most effective ads that will surely bring income? Of course, the fastest and most effective solution is to hire a digital marketing agency for small businesses. In doing so, you’ll entrust this task to professionals in this area and save a lot of your personal time. 

However, you need to make sense of it all yourself. In other words, if you want to get the most out of your campaign, you should know how it works.

There’s no need to delay building your online presence. Here are the main directions on how to get started:

Define the Main Objective of your Business

Before running a marketing campaign or using digital marketing services for small business, you need to define the main objective of this campaign. Think about what goals you wish to achieve and how you will convert leads, improve web traffic, enhance brand awareness, get more qualified leads, etc.

Realize Your Target Audience Is Online and Analyze Your Competitors

If you want to make your business grow, your first and foremost task is to research online and find out more about your competitors. Check out what people say about you and your competitors. This information will help you learn more about the marketing strategy used by your competitors. This is where you may borrow some ideas.

Work on Building Social Media Presence

To get started, you need to create social media accounts for your company. First off, before people buy anything, they go online to check the account of a chosen company. Secondly, social media is a mandatory component of any digital marketing strategy.

Opt for Email Marketing Campaigns to Contact Your Customers

Although some marketers say that email marketing is not as effective as other channels, small businesses can use this tool to get personal connections with their users. It is easier to personalize or customize your email as in this case as you communicate directly with your targeted audience.

Use Video Marketing

Catchy videos are usually more effective than informative posts on Facebook or Instagram. In a simple one-minute video, you can quickly show your message. The videos may be funny or informative. Although it takes time to create an engaging video, the result is surely worth it.


Well, it’s time to wrap up what has been said. We hope that now you understand why digital marketing is important for small businesses and are ready to implement effective marketing campaigns for your business goals. You see that it can help boost ROI, target the right audience, get measurable results, get quality leads, build brand awareness, and, of course, save you money. So, entrust this task to a time-proven digital marketing company for small businesses with many years of experience under their belts. This is where you simply can’t do without the services of NIX United. We’ll help you implement advanced digital techniques to improve ROI and outsell your competitors!

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— Update: 02-02-2023 — found an additional article Why Digital Marketing is Important for Small Business from the website for the keyword benefits of digital marketing for small businesses.

When small businesses get started, their focus is often on how to get the first customers through the door. They may rely on traditional forms of advertising, such as print ads, coupon mailers or even outdoor advertising. Businesses may believe that since they offer a good product or service, it’s just a matter of time until customers find their way to them.

While this strategy may bring in a trickle of business, there is a better and easier way. Small businesses should consider the global marketplace of prospects online and benefit from converging their traditional and digital marketing. No small business, no matter how new, should overlook digital channels as a way to generate leads and convert interest into customers.

Let’s look at the benefits of digital marketing and the ways online platforms can be used to help grow your business. 

Benefits of Online Marketing

The potential customers you can find online is a much larger group than you’ll ever be able to attract only locally. Using digital marketing techniques, you can reach a global audience in a way that’s cost-effective, scalable and measurable.

Some of the key benefits of digital marketing include:

  • The ability to interact with your prospects and learn exactly what they are looking for i.e. get to know your customers better!
  • The ability to reach out to anyone and anywhere as there are no geographical boundaries with digital 
  • Target the right audience at the right time – personalization is simpler with digital marketing
  • Communicate with your prospects at every stage of the buying process
  • Save money and reach more customers for less 
  • Get to know your audience and drive engagement to create brand loyalty. Get some inspiration from the power of customer loyalty schemes. 
  • Track and monitor responses to your marketing efforts easily and instantly 

Getting started on digital marketing for small businesses

With endless opportunities, digital marketing can seem intimidating if you’ve never used it for a business before. There are a variety of platforms and digital marketing terms that may make it seem like a bigger project than it is.  

Small businesses can believe they don’t have the time or money to compete online. As a result, many prefer to take things slowly and stick with one or two forms of traditional advertising, assuming that their business will evolve as time passes.

The fact is the marketplace is competitive and while word of mouth and customer recommendations can help drive traffic, customers will struggle to find your business unless you show up in the places they spend time. After all, 4.6 billion people use the internet for many reasons. That’s 60% global internet penetration according to Digital 2021: Global Overview Report.

So delaying building a presence online is not an effective approach. The best way to ensure success is to promote your business on a global scale and use targeting to attract customers that are interested in your service or product. 

Realize Your Customers Are Online

When someone is interested in your business, whether it’s in your niche or they are curious about your brand, the first thing they will do is research online and see what they can find out about you. 

In today’s digital age, customers expect to find a website and social media presence. They may be looking for reviews so they can learn what other people are saying about your company and whether it is a good place to do business. For local businesses, 87% of consumers read online reviews – a growth of 6% from 2019 to 2020.

So if a potential customer can’t find you online, they may conclude that your business doesn’t appear to be legitimate. There is a very good chance that a lot of these prospects may decide not to take your business seriously and they will quickly head somewhere else.

Tip: Find out 10 Ways Small Businesses Can Improve Their Social Media Presence. 

Find Out What Your Competitors Are Doing Online

For your business to be successful, you need to pay attention to what your competitors are doing and learn from it. Don’t think of your competitors as someone to beat, but as people who have something to teach you.

When you look at what your competitors are doing online, you will get some idea of what is and isn’t working. Most likely, whatever type of business you are in, your competitors have established a web presence. What kind of content do they use, is there a blog, or do they promote visual content such as videos? 

How do they communicate their brand and what makes them unique? How well do they engage with the audience? Can you do better? 

A great way to find out what your competitors are doing is to conduct research. Find out what platforms they use, do they focus on keywords, are there influencers they use to drive traffic? Luckily there are some great online tools that can help you do this:

  • Semrush – great for keyword ranking and keyword traffic
  • Ahrefs – useful for discovering competitors’ most linked content
  • Moz – another platform for keyword ranking
  • BuzzSumo – track popular content types and influencers
  • Google Alerts – a tool for tracking mentions of any competitor your choose to track
  • Ontolo – a great tool for backlinks and content marketing

There are also some awesome tools for customer insights to feed into your persona development and content marketing. 

Be Accessible to Your Customers

As we already discussed, your business needs to be present where your customers and that’s online. Whatever product or service a person looks for, they will most likely start their search with Google. If you have no online presence, then you won’t be found, and you can’t compete.

If you have an online presence but your competitors are easier to find as they rank higher in search, you still might not be found. Along with creating a website, learning what Search Engine Optimization (SEO) is and why it’s important will help you outrank competitors by being the first name that a prospect finds on a Google search.

Keywords are crucial in making this happen so make sure you understand the best keywords (long-tail and short-tail) for your business. Use this simple infographic to guide you through the five steps of keyword research. 

You should also include simple questions prospects may want quick answers to, such as where you are located, your opening hours, and details of your product or service. By looking at your website and competitors’ websites side by side, your prospects should be able to compare hours, prices, special offers and more to make the best decision for them.

We’ve developed this handy guide to SEO for small businesses if you need help getting started. 

Let Customers Come to You

Think of digital marketing as a way to make yourself accessible to the people you’re trying to target. The reach of your business can reach well beyond your locality and scalability becomes a reality. 

Through a web presence, your business is open for business even when you’re not! You can create an environment where your customers can contact you day or night.

This means that customers and prospects can send you emails with questions, make purchases and browse your inventory in a few simple clicks. In addition, potential customers who have no way of physically coming to you can still do business with you through an e-commerce function or simply by using social media. 

Get to Know Your Target Audience

The beauty of digital marketing is that it allows you to engage with prospects. You can get to know them and their pain points to provide a solution. On social media or through a blog you can start a conversation or run a survey to gain insights. Pay attention to any comments or survey responses.

By interacting with people online, you can start to get to know what they’re looking for. What are their pain points of issues? What keeps them up at night? Use this information to offer solutions through your product or service. Using digital marketing helps you take the guessing out of who your customers are so you can personalize communications and refine targeting. 

By doing this, you will build a relationship with your customers. You become much more than a business, you become a trusted partner. Remember, people are also more likely to buy from businesses that they have already bought from and had a good experience with.

Do more marketing for less money!

Few forms of advertising are as cost-effective as digital marketing. Small businesses and start-ups are always trying to achieve as much as possible through their marketing on a budget. 

Advertising online can stretch your budget further and will allow you to refine your target audience. Social media is particularly good for this as it enables you to set a daily budget for a discrete audience that has an interest in your brand or ethos. Most importantly, it allows your business to exclude the people that would never buy from you – saving you time and money!

The key with advertising on social media is to select the platform that will work best for you and your brand. Don’t pick TikTok just because it’s trending or advertise on LinkedIn when you’re not trying to generate B2B interest. Research social channels, check out a guide on social media demographics to find one that matches what you’re looking for and run some simple tests to see what messaging and content works. 

If you need help with budgets, check out this great digital marketing budget toolkit. 

Transform the marketing capabilities of your small business

Are you looking to develop a website that can generate leads? Or maybe you want to set up a Facebook campaign to see the results. The first step to achieving these goals is to develop an understanding of digital marketing and how it can have a positive impact on your business. DMI’s Professional Diploma in Digital Marketing will teach you the most relevant and up-to-date digital marketing skills. From social media to SEO and paid search, you will have the tools to ensure your business succeeds online.  

First published July 2018, Updated November 2021

— Update: 06-02-2023 — found an additional article Top 10 Advantages Of Digital Marketing For Small Business from the website for the keyword benefits of digital marketing for small businesses.

Digital marketing has gained huge popularity among businesses of all types around the world. It has become an important tool to promote a business’s products and services, allowing organizations, large and small, to foster a more personal relationship with their consumers globally. Digital marketing enables companies to deliver content to their customers through personalized and cost-effective communication.

Benefits of digital marketing for small businessesBenefits of digital marketing for small businesses

If you think Digital Marketing is not worth it, you’re wrong!

In a world where multi-channel digital marketing is growing by a whopping 140%, traditional advertising has lost its vigor. Last year, ad spending on Internet outdid advertising on television and cable networks. So, what prompted this upsurge in the use of Digital Marketing? It’s the consumers themselves.

According to research, a phenomenal 72% of consumers are already connecting with brands through their numerous digital marketing channels and activities. Nonetheless, despite the fact that both consumers and entrepreneurs are moving towards digital media, many small businesses have yet to pick up the momentum.

As opposed to what many small business owners believe, digital marketing is not as complex as it appears. Many businesses, even the large ones, have experienced and enjoyed the fruits of digital marketing, and it’s worth investing in this new and innovative domain. Still not convinced? Read these 10 big advantages of digital marketing and change your perception.

1. It Connects You with Your Consumers on the Internet

Gone are the days when people would sift through piles of phone directories or flip through pages of newspapers to find information about a product or service. Today, a staggering 80% of consumers use the Internet to find information on a broad range of products and services.

2. It Generates Higher Conversion Rates

Digital marketing helps you reach out to targeted audiences, generate leads and achieve as much as a 24% surge in conversion rates.

3. It Saves You Money

According to a study, a phenomenal 40% of small business owners are reported to have benefited from digital marketing.

4. It Enables Real-Time Customer Service

According to a report from eMarketer, your business can hugely benefit from this real-time response mechanism offered by digital marketing.

5. It Connects You with the Mobile Consumer

With mobile marketing generating up to 34% of all organic traffic, digital marketing makes it easy for you to tap this enormous market. Mobile technology, according to eMarketer, is also greatly impacting the purchasing behavior of these consumers.

6. It Helps Earn Higher Revenues

Digital marketing is the best tool to drive sales. You can create social media campaigns, refine your audience based on the interest, age group, and country. You can also use Google Adwords, bid on potential keywords, and land your audience on your Amazon landing page to drive sales.

7. It Offers Higher ROI from Your Campaigns

A HubSpot report said that digital marketing can help businesses produce better Cost-Per-Lead (CPL) than traditional marketing or even telemarketing.

7. It Offers Higher ROI from Your Campaigns

A HubSpot report said that digital marketing can help businesses produce better Cost-Per-Lead (CPL) than traditional marketing or even telemarketing.

8. It Keeps You on Par with Competitors

While it may be draining to keep up with the everchanging trends within your respective industry, doing so is the only way to remain on par with competitors. Digital marketing helps many brands and businesses beef up on their marketing campaigns, using numerous channels available including display, PPC, mobile and social media.

Read more  Does Marketing Really Matter? (8 Benefits That Show It's Critical)

9. It Helps You Compete with Large Organizations

Not only does digital marketing keep you on a par with your competitors, it can also help you compete directly with big brands and large organizations.

10. It Prepares You for a global online ecosystem

According to a report, by 2020, a projected 26 billion gadgets including smartphones, tablets, home appliances, shoes, eyeglasses, and other accessories will be interconnected in a global online ecosystem, which speaks volumes of the significance of digital marketing.

— Update: 08-02-2023 — found an additional article 5 Benefits of Digital Marketing for Small Businesses from the website for the keyword benefits of digital marketing for small businesses.

The group of potential customers found online is a much larger group of people than you are likely able to attract locally. Using digital marketing, you can reach an enormous audience in a way that is both cost-effective and measurable. This post will help you better understand the benefits of digital marketing so that you are better equipped with the tools you need to optimize your small business.

Let’s get started!



1. Budget Friendly:

As a small business owner, you likely need to be very particular with how you spend your marketing budget. While traditional methods of advertising on billboards and newspapers can get very expensive very quickly, marketing on digital channels usually requires less investment and you can be more precise with who your ads are targeting so you know you’re spending your marketing dollars on the people that matter to your business. Initially, I recommend investing a budget amount you’re completely comfortable with and measuring the results.  As you see performance increase, you can confidently increase your investment over time. Additionally, results tend to come in more quickly through digital channels, so you can quickly see the return on your investment.

2. Reach:

Digital marketing allows you to reach out a wide audience quickly. People constantly spend more and more time on screens and digital advertising are present on almost every website we visit. By investing in digital marketing, you’ll be showcasing your brand in front of people instantly. It’s likely that 60% of your website traffic today is coming from mobile devices, and so a great opportunity lies in reaching these mobile consumers wherever they are. Social media platforms utilize specific audience targeting, allowing you to reach the people most likely to read and respond to your content.

3. Define your Audience:

You probably have an idea of who your target audience is and where to reach them. With digital marketing, reporting metrics will show you exactly who is interacting with your ads and on what channels – you may find new audiences you hadn’t thought of before. You’ll also find that some audience groups outperform others, so then you’ll be able to adjust media dollars accordingly.

4. Time Effective:

There’s no waiting on third party print shops to print all your materials. You don’t even have to leave your office chair to deliver the highest quality content straight to your audience. With all of your marketing being done in a time effective manner, you’ll have more time in your day to think about the other aspects of your business. With digital marketing, it’s very quick to go into the back side of your social platforms and track your analytics to make sure your money is getting spent in the right way and reaching as many people as possible.

5. Increased Brand Awareness:

It’s no surprise that the average person spends a ton of their day online. In fact, Nielsen Total Audience, found that the average adult spends 11 hours a day interacting with some form of media online. In correlation, there is an average of 3.2 billion social media users worldwide. Utilizing social media platforms as part of your digital marketing plan will increase the number of people who know about your business and can recognize your name. Your customers are already on social media, you may as well put your brand out there and in front of their face to promote your business even faster.

In a technology era where more consumers are using the internet to shop, socialize and search more than ever before, utilizing digital marketing strategies is a must if you desire to reach today’s audience. Each of these top strategies will help you generate the awareness needed as a start to building a sustainable brand online.

Kevin Wilhelm is the founder and President of POD Marketing, a full-service digital marketing agency.  

Listen free to our podcast episode about content marketing:

Benefits of digital marketing for small businesses



Read More: 

How to Complete a Digital Marketing Strategy in 4 Simple Steps

POD Marketing – Small Business, Epic Story ft. Kevin Wilhelm

A Key Marketing Concept that Every Small Business Owner Should Know

Equip yourself with the marketing tools to beat the competition. Download Olympia’s FREE Marketing eBook today

— Update: 08-02-2023 — found an additional article Benefits of Digital Marketing for Small Businesses from the website for the keyword benefits of digital marketing for small businesses.

Digital marketing is all about reaching out to targeted clients at the right time. In today’s technological and digitized world, connecting with your customers online is the best way to develop your business. 

Since the internet has become an inevitable part of the modern world, today’s competitive marketplace requires intelligent digital marketing strategies for the launch and growth of any business.

Especially startups and small businesses need a higher level of a digital marketing plan to generate and enhance their communication with potential customers.

You can check out our article to see digital marketing agencies for startups that can help you find the most effective strategy to grow your business. 

If you are a startup or small business owner, you should choose the most profitable digital marketing strategies to achieve your specified marketing objectives while promoting a product or service to hit the marketplace.

Here we have listed the benefits of digital marketing strategies for small businesses to help them market their products or services with the right digital media planning. 

Higher conversion rates with the right strategy

One of the top benefits of digital marketing is providing higher conversion rates. The conversion rate is basically the percentage of visitors to a website who take the desired action.

Through conversion rate optimization, digital marketing agencies will enable your business to reach out to a higher number of visitors completing your desired goal out of the total number of visitors.  

Regardless of what type of business you own, the primary purpose of a growing business is to generate sales leads in promoting products or services. The generated leads will help you get higher sales through online advertising and digital marketing strategies. 

For instance, the aims mentioned above can be achieved with a pay-per-click tactic. It is a method of paying an amount for each click your advertisement gets.

It means that you can pay for more visitors to your website. According to the studies, more than 60% of digital media users click on Google ads while surfing on the Net to buy any item.

Here is our article about PPC marketing for small businesses that can inform you about what is PPC, how it works, and what its benefits to your business are in detail. 

Achieving more targeted customers

As a startup or small business owner, you can accomplish your marketing goals and connect with your target customers easily via online marketing. With digital developments all around the world, millions of people use at least one online platform to get information about several services and products. 

With the right strategy at the right time, you can connect with more potential clients for your business, and this efficient access is possible with an intelligent digital marketing plan.

Digital marketing agencies help you achieve more customers through various strategies, including content marketing, search engine optimization, e-mail marketing, video marketing, and so on.

Those agencies analyze your current situation and your ultimate business goals to choose the most profitable plan for online marketing and advertising.

Among the benefits of digital marketing, the crucial role of reaching out to targeted customers is unquestionable. Digital marketing will lead to an easier and faster way to find a product or service online for digital network users. 

Higher revenues with minimum cost

As one of the benefits of digital marketing for startups, marketing with minimal cost and higher revenues is the most desirable scenario, especially for small businesses.

Benefits of digital marketing for small businesses

Bigger corporations can afford the higher charges of marketing, but startups and small businesses need to make an effort to keep the costs low and get more profit.  

At that point, digital marketing gives a hand to businesses to minimize the expenses in promoting products or services. By aiming the potential customers, digital marketing ensures favorable sales outcomes and eliminates the possibility of wasting your time and money. 

Working with a digital marketing agency, you can find out the cost-effective digital plan for your business and get higher revenues.

Multiple platforms are available to reach the targeted customers, and those agencies choose the best strategy to make a considerable profit for your business. Through the right digital marketing experience, lead generation and customer acquisition are not so difficult anymore. 

Benefiting from the power of social media

With the increasing number of social media platforms such as Facebook, Twitter, and Instagram, you can hit the headlines with your business by reaching out to lots of people in a short time.

Social media is so impressive that it can shape users’ preferences, decisions, and choices in any subject. Depending on the type of your product or service, social media tools are the best to be noticed by the people who are more likely to be interested in your business. 

Small business owners and entrepreneurs may consider this process as complicated. Still, there are lots of social media agencies for startups providing you with professional assistance to improve your business’s recognition through social media platforms. 

Facebook has currently over 2.6 billion monthly active users as the most influential social network site in the world. Imagine how many potential customers may can the advertisement of your business on Facebook in a second. Therefore, an effective digital marketing strategy should benefit from the power of social networking platforms to support businesses. 

Competing with other corporations

Traditional marketing plans require a high amount of budget to achieve advanced business growth, and it is not easy to compete with larger corporations that can afford any marketing expense.

Startups and small businesses need a lower cost with a higher rate of return. This is possible only with digital marketing because it undertakes any size business to be noticed and grow in any location worldwide. 

The digital world allows you to create an online store and an online platform to interact with your clients regardless of where you and your clients are.

The right digital marketing strategy provides advertising options, running, and monitoring the outcomes in a very short time. In this way, you can boost your business with high-quality and fast services that will enable you to compete with larger companies at little cost. 

Providing real-time customer service 

Customer service is essential if your target is to dominate the market because customer satisfaction is the key point to establishing an absolute market presence.

Among the benefits of digital marketing, real-time customer service is one of the most profitable concepts offering a high rate of return for any size business.

Traditional marketing methods are insufficient to connect with customers directly. Therefore, almost all businesses benefit from digital marketing to interact with their customers in real-time to offer a faster solution. 

Easy and quick communication brings along trust and credibility, which means your business will be reliable to share with others.

So, if you provide well-structured customer service to your customers, they can suggest your company to their contacts who will be your new customers. It must be a part of the planning for further goals that will produce more profit later on. 

As can be understood from the information above, digital marketing helps startups and small businesses produce more profit than you can imagine. The right strategy minimizes the expenses and maximizes the profits of marketing through digital advertising.

We have listed only the top benefits, but when you start working with a digital marketing agency for promoting a product or service, you will discover more benefits that will boost your business’s presence and sales. 

— Update: 10-02-2023 — found an additional article Does Marketing Really Matter? (8 Benefits That Show It’s Critical) from the website for the keyword benefits of digital marketing for small businesses.

Many small businesses don’t think they “do marketing,” or need to “do marketing.” In fact, around 37% of small businesses in a survey of 500 small businesses don’t have a website to market their products and services.

Benefits of digital marketing for small businesses

The basis for this line of argument for many of them is that they’re too busy trying to get customers through the door to be bothered about “fancy marketing.”

Benefits of digital marketing for small businesses

However, marketing is a more effortless and surer way to bring in the business they want. This article will reveal some benefits of digital marketing for small businesses and show that marketing truly matters regardless of the business you run.

They believe that customers would inevitably find their way to them since they have a great product or service. But unfortunately, although this strategy might bring some customers (after all, who doesn’t love great products and service?), its results pale compared to what they’ll get if they use digital marketing.

The global pandemic and measures to curb its effects have changed the business and retail landscape. Many people have integrated online reviews and searching online into their decision to purchase a product or service. This reveals just how much digital marketing helps small businesses and why it’s in their benefit to take advantage of this new situation.

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The market out there is simply too big and important to be ignored. According to the Global Overview Report, more than 4.6 billion people worldwide use the internet, and 46.3% of them use the internet to research products and brands.

Benefits of digital marketing for small businesses

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So, what does this mean? Having a great product or service is essential, but it’s ultimately futile if nobody knows about it. Digital marketing is how you get your product out there and should be part of every small business’s strategy for growth.

Why some small businesses don’t invest in digital marketing

Since marketing offers many benefits, it’s bewildering to see small businesses fail to invest in it.

However, it’s important to note that these owners have their reasons. Some of the common reasons include:

Service-based companies don’t need to do marketing.

On the surface, this looks like a genuine reason, but it turns out to be smoke and mirrors. As long as you’re a business selling something, you can benefit from a sound digital marketing strategy.

The business has tried marketing before and it didn’t work.

Just because you’ve tried something before and it failed doesn’t mean it can’t ever work. Have you tried something else? Sometimes, some businesses have started on the right marketing path but fall off because of a lack of patience.

It’s essential to measure the right metrics in any marketing campaign to judge whether it’s working or not accurately.

There is plenty of help available to small business owners who want to improve their marketing strategy.

The business is small and plans to stay small.

Growth isn’t for everyone and small businesses that say this can’t really be faulted. However, just because you don’t want to grow bigger doesn’t mean you can’t benefit from marketing.

For example, marketing can help you increase your retention rate and even improve the quality of customers or clients you attract.

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Benefits of digital marketing for small businesses

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Why Digital Marketing is Important for Small Businesses

Relying solely on traditional marketing methods will not achieve the desired results, so small businesses should adopt digital marketing.

With so many people connected to the internet, online searches have increased in volume and frequency over the past year. 79% of consumers currently use the internet to find information about local businesses, and a digital marketing strategy makes it possible to be found easily by searchers.

Benefits of digital marketing for small businesses

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Another reason why digital marketing is excellent for small businesses is that it can turn customers into brand ambassadors. Using digital testimonials can complement the “word of mouth” way of marketing and since 89% of consumers read reviews before buying products, integrating such testimonials is a no-brainer.

Digital marketing widens your reach. By using multichannel, you can increase conversions and reach potential customers where they are. Social media is a gem, with 4.20 billion people using it. So by tailoring your message on the different channels, you can boost your reach over time.

1. It increases your reach

Considering that people today are spending more time than ever before in front of their screen, digital marketing offers small businesses a great chance to reach new audiences.

Small businesses can use either organic or paid digital efforts to reach these new audiences.

2. You can target your audience at the right time

Most digital marketing channels have personalization and segmentation features that allow you to reach your audience with the right message at the right time.

For instance, you can send time-limited offers to subscribers on your email list. Or run Twitter ads during specific holidays to target your audience at the right time.

3. It improves communication at all stages of the buying process

People rarely go from being unaware of your brand to become customers. There’s typically a buying process they go through, and digital marketing channels help you guide your audience through this process.

For instance, you can create valuable content that answers questions your audience might have with your blog. Also, you can use social media to drive conversations and engagement among your audience.

4. It’s cost-effective

Compared to traditional marketing, digital marketing offers a low-cost method to reach your audience. Sometimes, with channels like social media and email marketing, you might not even have to pay to market your products and services to potential customers.

5. It’s easy to tack and monitor

Most digital channels come with analytics that help you quickly identify what elements work within your marketing strategy.

Once you identify an under-performing area of your strategy, you can quickly switch things up and monitor how well the new elements are working.

6. Marketing allows you to know customers better

Before starting your business, you likely had an idea of your ideal customer. However, marketing helps you even get to know this ideal customer more.

How they interact with your campaigns and marketing messages helps you identify what’s important to them and how you can connect better with them.

7. It lets the customer come to you

Consistently creating valuable content for your audience helps you build authority and subject matter expertise (SME) in your industry. When people have problems concerning the topics you talk about, it’s easy for them to turn to you.

8. Digital marketing can increase your revenue.

Assuming your conversion rates are constant, it goes without saying that you’ll make more money if you reach more people — and that’s exactly what digital marketing helps you do.

Using social media, a website, email marketing, and more digital channels, you’ll have more avenues to reach more people through at a marginal cost difference than you would if you used traditional or in-person marketing methods.

Use Digital Marketing for Small Businesses

Digital marketing can have a huge, positive effect on your business. Developing a marketing strategy might take some time, but it’s time well worth it. No business, big or small, new or old, should overlook the opportunity to generate leads and improve conversions that digital marketing offers.

Editor’s note: This post was originally published in November 2006 and has been updated for comprehensiveness.

Benefits of digital marketing for small businesses

— Update: 10-02-2023 — found an additional article The Importance of Digital Marketing for Small Business Owners from the website for the keyword benefits of digital marketing for small businesses.

Digital marketing has seen tremendous growth as a marketing career path, with no signs of slowing down—but even if you aren’t looking to change careers and become a marketing expert, this skillset is critical for small business owners and others working to attract and convert customers. Read on to learn why, and how you can get started on your digital marketing learning journey.

Why is digital marketing important for business?

When internet users are comparison shopping, they’ll default to the business that provides the best customer experience. Basic information like hours of operation, location, prices, special offers, and contact info should be easy to find. If customers don’t feel that your digital store is open at their convenience and on their terms, they will find another store.

That being said, online marketing is much more than a defensive play. It’s not just about keeping potential customers away from competitors. Instead, think of it as a proactive strategy that shows customers that a brand has thought about them and their purchase journey. An effective digital marketing strategy starts with making that journey as easy as possible, even for brands that are not strictly focused on e-commerce.

Does digital marketing replace traditional marketing?

Embracing digital marketing doesn’t mean you must abandon all traditional marketing efforts. Instead, leverage digital marketing to go deeper on traditional campaigns. Digital media such as videos, photos, and audio can provide context, depth, or clarity around advertising claims you’ve already made.

What are the benefits of digital marketing? 

Digital marketing offers many advantages over traditional advertising methods, such as print ads and direct mail, billboards, TV and radio. It allows brands to do more with their resources while empowering the customer to do business with that brand on their terms. 

At a minimum, online marketing allows customers to find the information they need even after you’ve closed up shop for the night. It gives them the option to email questions at any time, rather than forcing them to call during business hours; it puts your interactions on their schedule and not the other way around. 

Done well, digital marketing is the ultimate way to build authority and brand awareness in the largest market on Earth: the Internet. Brands can engage directly with their target audience through social media to learn exactly what consumers are looking for, and forge authentic relationships that create trust and brand loyalty. 

In short, the importance of digital marketing goes beyond making a sale; it is a long-term investment in the health and growth of your business. Here are some of the benefits of adding digital strategies to your marketing plan:

1. Reach

Most types of digital marketing are far less expensive yet have far greater potential reach than classic strategies, making digital ads a cost-effective choice for small businesses who are worried about ad spend.

Direct mail and billboards depend on customers living in a certain area, while radio and television demand that consumers pay attention to specific media formats that are falling further and further out of style. By comparison, online marketing can reach anyone, anywhere, even on a global scale. 

Most potential customers are using mobile devices, or are at least spending a big chunk of their day online. Brands can use content marketing, email marketing, social media marketing, and other digital marketing channels to meet those customers where they are. 

2. Targeting 

Digital marketing tools and analytics can help brands identify and target customers who are most likely to want their products or services, so they can invest resources into the demographics where they will deliver the most value. A strong digital marketing strategy enables companies to better use their budget and personnel while driving greater return on investment.

3. Flexibility

Modern marketing analytics tools provide real-time insights that let businesses adjust marketing campaigns on the fly. In contrast, traditional marketing methods demand sunk cost: The money is already spent, and if the campaign fails, there is nothing to be done until the next one. A faulty digital campaign can still be salvaged, and so can the money spent on it. 

4. Measurability

Unlike billboards, TV ads, and radio jingles, digital marketing channels come hard-wired with the tools brands need to measure performance. 

“These days, it is critical for marketers to have a fundamental understanding of analyzing customer and market data in order to make informed decisions,” said P. K. Kannan, Dean’s Chair in Marketing Science at the Robert H. Smith School of Business at the University of Maryland and instructor for the Fundamentals of Digital Marketing course.

It’s easy to see how many impressions, clicks, and likes are being generated by social media posts, or how many visitors are coming to your website and from where. Attribution modeling traces a customer’s first sale back to their first point of digital contact with your brand. Choose the metrics you value most and start learning how your digital marketing campaigns affect conversion rates. 

5. Legitimacy

Potential customers are more likely to trust businesses that have an online presence that includes:

  • A website
  • Testimonials
  • Social media accounts

A healthy online presence shows that a brand is established and trusted. Trust can make or break the deal for consumers who are considering a new product or service. 

Tip: Collaborating with influencers on social networks is one of the most powerful ways to improve your brand reputation.

6. Democratization

Digital marketing (when done right) can level the playing field for small businesses competing with major corporations. Amazon, Walmart, and other big box retailers may have the deepest pockets, but money can’t buy search engine relevance. The only way to land at the top of the Google results page is to establish relevance through strategies like pay-per-click (PPC) advertising and search engine optimization (SEO).

Is digital marketing a good career? 

Maybe you’re looking for more than just a value-add for your business; maybe you’re ready for a career change and wondering if digital marketing is right for you. This field couples high earning potential with a low barrier to entry. It’s ripe with opportunity and promises to keep growing on pace with internet usage. It is currently in LinkedIn’s top 10 most in-demand jobs. 

Every business needs digital marketing, so landing a job in this field offers excellent job security, as well as plenty of room for growth for folks who can demonstrate consistent wins. It also pays well: According to data from ZipRecruiter, the national average salary for a digital marketing manager is $71,914, and digital marketing directors can earn well over six figures. According to the Bureau of Labor Statistics (BLS), marketing managers are among the top ten highest paying jobs in 2021—and continue to grow despite pandemic effects.

Digital marketing can also be attractive because it allows flexible scheduling and remote work. It’s also dynamic, presenting new challenges and technologies almost daily. If you are disciplined, creative, and seeking an exciting, ever-changing occupation, digital marketing can be a stimulating long-term career choice. 

How to get started in digital marketing

If you do not have experience in digital marketing, get your foot in the door through online courses and side projects.

“Start a site, start a blog, try affiliate marketing, run small-scale digital marketing campaigns,” said Ken Berman, Director of Digital Marketing at edX. “You can gain a lot of interesting experience from building a website and how to capture that information and market to those people—the barrier to doing that is lower than ever now.”

Learn digital marketing skills

Whether you’re looking to change careers or add value to your business, you have nothing to lose and everything to gain from learning digital marketing skills. edX hosts a variety of marketing courses and programs that can help you get started on your journey.


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About the Author: Tung Chi