Impact of Digital Marketing on Small Businesses in 2021

Digital marketing acted as a lifeboat for small businesses in 2020. Companies with digital marketing solutions found themselves in a situation of development and demand. Every business, understanding the importance of digital marketing, opted for digital solutions.

This trend has effectively followed itself to 2021. Many budding entrepreneurs have dived into digital marketing headfirst to acquire the first place. This has opened up gates of prosperity and growth for them, and the impact of digital marketing on small businesses has been profound. We will understand this in detail in this article.

Digital marketing, in simple terms, refers to the marketing that is done on digital platforms. It has various channels like email marketing, social media marketing, content marketing, online advertising, and many more. Through this marketing tool, the customer pool of a business expands to the whole internet. This strategy is essential for a small business growth plan.

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How Much are Small Businesses Spending on Digital Marketing?

It can be difficult to establish a digital marketing budget. This is because most companies will not set a budget until they are sufficiently large to afford it. The advertising budget is competing with other expenses once that happens. Every dollar must be justified.

This answer depends on the business size, industry, revenue, and much more. So how do you think about how much you should spend and the potential return?

The truth is that most customers make their budgets on the basis of their own subjective assessments of marketing value, frequently with little confidence. There are three easy strategies to create a data-based budget among small business growth hacks.

1. Cost Of Advertising

What is it going to cost you to buy a client? Responding to this simple question will give a good standard of information as to whether advertising is costly or comparatively cheap. You can also get an indication of the number of consumers you can expect on the basis of your expenses. Now, most companies cannot answer this particular issue without spending money.

We recommend using Google Search advertisements as an advertising proxy for the average cost per click (CPC). You can do that by searching the average CPC for your most focused search terms that will most likely be converted via the Google Keyword Planners. For instance, if you are running a rhinoplasty clinic, “rhinoplasty clinic near me” or “top rhinoplasty doctor” maybe your most targeted keywords.

A low CPC of a few dollars suggests that you can receive more from a small investment in certain keywords. But a high $10+ CPC suggests that you have to spend more on getting a new consumer.

2. Revenue Per Customer

This is our favorite way of looking at advertising expenditure because it enhances the discussion regarding investment return and client acquisition goals. You have to find low-cost strategies to purchase clients if your customer earnings are modest, say $100. If your customer earnings are high—in the thousands—you can probably spend a bit more on client purchasing and still see a return.

In this circumstance, we recommend establishing an acquisition cost (CPA) objective, which will allow you to realize a return.

Note that by acquisition you will notice different charges for various channels, thus it’s vital to test various marketing methods to prove these expenses.

Finally, it is crucial to establish what your customer’s actual income is. Usually, you will want to know that a customer’s lifetime income is — short-term income can be modest sometimes, but repeated income can be a far greater chance.

3. Percentage Of Your Total Revenue

Last but not least, considering your marketing budget as a % of your entire income, you know how much you should spend according to your size. You probably won’t shift the needle with a really tiny budget if you’re a major corporation. Consider the competitive benchmarks for other industry companies.

According to the February CMO Survey of Deloitte, 8.6% of their company sales in February accounted for 265 top marketers’ budgets. This percentage is industry-based, and these budgets frequently contain both advertising and operating costs, such as software and employee pay. What I have constantly observed is that the majority of higher-creation businesses spend less on advertising and internal resources, while the majority of lower-creation companies do so.

Which Digital Marketing Techniques Should Small Business Use?

Digital marketing is carried out by different effective methods which create a positive and powerful impact on startups. They are as follows:

Social media advertising

Social media marketing is a technique businesses use to market their product and services on social media platforms. This technique is helpful when millennials are your target audience.

With the popularity of this digital marketing technique, courses for small businesses can be found online to master this technique. We explained learning social media marketing previously on our blog post. You can check it to get more information.

Growth Hacking

Growth hacking is a newer concept in the digital field. This method involves taking traditional digital marketing methods like SEO, pay-per-click, social media marketing and executing them in a uniquely creative way. This helps in attracting new customers to the business.

Affiliate marketing

As the name suggests, affiliate marketing is a technique where a company or an individual promotes the products and services of another company. When the latter earn profits, it pays the former for the marketing services.

For better understanding, the ed-tech market has several Affiliate marketing courses that you can utilize to learn more about this method.

Lead generation

Lead generation is a way of expanding the customer base by enhancing web page optimization, customer experience, keyword updates, and mobile-friendliness of the website. This generates leads or potential customers, which can be further converted into paying customers.

Content marketing

Content marketing is an effective method where you create relevant content regarding your business and then market it across distinct digital platforms. This method includes email marketing, blogging, and so on. You can master this technique through several content marketing courses available in the market.

Google My Business

One of the most significant things you can do for your business is to place your Google My Business (GMB) listing.
In fact, I dare argue it’s THE most powerful technique that you have to manage a local firm targeting local customers.
For instance, if you look for a “Portland contractor,” that’s what you see:

Without a few days of advertising, you may rank your GMB in the top three in a large number of highly qualified tracks.

All Google My Business platforms on Google are united in one single place, including your page Google+, your profile for Google Maps, Google reviews, access to data from Google Analytics, information from Google Insights, and more.

Google Adwords

On Google, every second there are over 40,000 search inquiries. No other type of advertising can get your business in front of so many eyeballs

Google Adwords is a kind of internet marketing channel godfather. It was a long time around. This is competitive. It is competitive. It’s costly. And it can work very, very well for you if you know what you are doing.

While Adwords is a paid channel, the objective is still to supply consumers with suitable search results, so that the right SEO on the web page is less costly for you.

Google gives your ad a quality score that is CTR (Click through Rate), relevancy, and traffic on the landing page of your ad. These quality score factors are important for the bid rate that you must present an ad that reduces bid costs by better scores.
In contrast to many of the channels we are discussing today, Adwords is a remarkably symbiotic channel that can be combined with many more output maximum tactics.

As these methods are useful and essential, let us understand how they impact a business when used practically.

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Why You Should Use Digital Marketing Tactics for Small Businesses?

Growing a business in 2021, amidst the escalated competition, is not a piece of cake. Therefore, you need to maximize your customer base, create an online brand, work on brand awareness, and connect with your customers. All this is possible by employing innovative digital marketing techniques.

Cost-effective deal

Digital marketing consumes much less capital than traditional marketing methods. Small businesses cannot reach far with traditional methods. In this digital world, every business requires digital solutions, which is highly beneficial for a startup business. You can market your products and services without breaking your bank account.

Online digital marketing tools like Google AdSense demand very less advertising cost as compared to traditional newspapers and television ads. It is important for every small business owner to indulge in digital advertising for cutting costs.

Higher conversion with less capital

Digital marketing for SMEs is beneficial as it promises a higher conversion rate without employing large amounts of money. Techniques like search engine optimization, social media advertising, content marketing help in reaching the full potential of the business and convert potential leads into paying customers.

Small businesses should make efforts to come up with new and innovative marketing strategies to increase conversion and maximize profits.

Equal opportunities for everyone

The best thing about digital marketing is that its techniques grant equal opportunities to everyone. So, any startup with minimal funds can use the trending digital marketing tactics and explore new realms of development and growth.

Small businesses can stand well in competition with established businesses by crafting efficient marketing strategies and engage with prospective clients to increase customer reach.

Increased revenue

Higher conversion rates lead to increased revenue. With increased traffic on your website and a loyal customer base, you can increase your revenues. If you execute the right strategies the amounts of revenue generated will be profitable. So, you should always practice your digital marketing skills to be up-dated.

Accurate audience targeting

The digital marketing methods assist in targeting the right audience. They help in targeting a specific audience. For example, with email marketing strategies, you can target your customers individually. This creates a personal connection between you and your lead. This form of marketing is impossible when it comes to traditional marketing. Personalized interactions are much more result-oriented.

Targeting Mobile Devices

About 85% of the population has access to the internet via mobile phones. Digital marketing helps small businesses in creating mobile-friendly websites and targeting their potential audience. If you wish to grow your business, then constructing a mobile responsive website and social media presence is the way to go.

Increased brand awareness

The best way to spread awareness about your brand is via digital marketing. It is the fastest and most reliable method to increase your brand reputation. For this, the SMEs should focus on getting the maximum clicks on all the marketing platforms. Soon enough, more and more people start connecting with your brand once it is established.


What digital marketing can accomplish has become evident to us in the last decade. With the increased usage of the internet every minute, digital marketing has become a pioneer for small businesses.

Beneficial Small Business Kits

Salesforce small business growth kit
There might be many twists and turns in the way to growth. However, you can think of three things to make the trip easier: your plan, your preparation and your tools and solutions for bringing your vision into existence.

This kit provides instruction in all three fields. Then you can find some useful insights here, whether you are just starting to define your destination or are well on your way.

Get what you need with your new Small Business Growth Kit to bring your business’ growth to new heights. Here are just some of the things you’re going to get, for free:

    • Best practices to develop your company
    • a 5-stage plan for a higher level of sales
    • Successful entrepreneur growth stories

Conclusion

Small business growth and sustainability are necessary for a thriving economy. The community also benefits and prospers when small enterprises are healthy and profitable.

Small enterprises in America are 28 million. These companies employ 55% of employees and account for 54% of transactions year-round. Since the 1970s, 66 percent of the net employment creation in the economy has been done by small firms. Small companies combine to give the US workforce a big boost to stability.

This powerful impact of digital marketing on startups will continue to grow in the future as well. This is why it is prudent to adopt these marketing techniques as soon as possible to get established in the competition.