Features

86% of small businesses don’t bother with digital marketing. Why not?

Across any given week, Channel Seven airs six episodes of Home and Away. With the ads, that’s three hours of television a week.

Assuming you watch Home and Away — and a cursory glance at the nightly television ratings suggests a lot of us do — this three hour period could be otherwise spent* sorting out digital advertising for your business.

Research conducted by Localsearch revealed that a whopping 86% of small businesses spend less than three hours per week on digital marketing. As Alf Stewart would say, that’s a flamin’ outrage!

Even more shockingly, 23.5% of small businesses spend zero time on advertising. Zero! Nearly half of all Australian small and medium businesses haven’t even bothered claiming their Google Business Profile, which is the way most Australians look for products or services.

So why, in an age when advertising is available to anyone — when reaching an audience is no longer cost-prohibitive, or geographically-limited — would small Australian business neglect such an important element of business?

“Small businesses, mostly the mum and dad businesses of Australia, have a lot on their plate – and sometimes it can be hard to commit time to advertising their business,” reasons Daniel Stoten, chairman of Localsearch.

Stoten says by neglecting advertising they also neglect to maximise the opportunities that come with it. “Given the chance, small businesses will jump at the opportunity to grow and market themselves,” Stoten continues, “but we often find they lack the time, expertise, or both.”

Stoten finds that, for SMBs, “it can be as simple as not knowing where to start”. Not too surprisingly, given his role, he recommends these businesses first claim their free Localsearch Business Profile.

“This will allow them to be found by the millions of Australians searching for businesses just like theirs on Localsearch.com.au,” he explains.

The next thing he suggests they do is claim their Google Business Profile.

“Our research shows that nearly half of small businesses have not claimed their profile which is a staggering statistic. A Google Business Profile is essentially your business shopfront within Google’s organic search streams, giving an overview of what you offer to people searching queries directly relating to what you offer as a business.”

Once you have claimed your listing profile, it’s just as important to optimise it.

“This means making sure your contact information is up-to-date, your address is correct and it matches your website,” Stoten explains.

“While you’re there, add some images and give customers a good idea of the services your business offers.”

Localsearch has found that 60% of Australian customers check Google Reviews before visiting a business. “This makes it that much more important to be found and make a good first impression.”

The next step from there, according to Stoten, is to create “an informative, and compelling website” to build your presence online.

“Whether you are a bakery making specialty cakes or an auto mechanic specialising in car repairs, if you can’t be found, you won’t be seen.”

Stoten says, while businesses not claiming free visibility tools like Google and Localsearch Business Profiles is the biggest mistake he sees SMBs making, there are many others.

“Poorly optimised digital presence marketing is something we continue to hear about,” he says.

“Whether it be Google Ads or Meta advertising, understanding your audience, where they consume content, and how best to tailor your ads to them will help translate better into leads.

“If you don’t target properly — with poor wording, creative, or timing — your hard earned cash will be going to waste.”

A social media presence is also becoming more vital to businesses.

“Threads hit the scene in the last few months, and TikTok and Meta continue to update their algorithms, favouring engaging content. Those businesses that diversify their advertising avenues will continue to see the greatest impact on their bottom line.”

Any online visibility is better than none.

“We have seen digital presence go from a novelty, to a business mandatory. Competition is fiercer than ever, and those that evolve best will thrive”

The internet has upended most industries over the past few decades, as Stoten notes. “While word of mouth is still king, what is most worrying for me is how small businesses rest on those laurels and might think it is enough.”

As the high failure rate of SMBs shows, word of mouth is no longer enough.

“It is alarming to see so many businesses asleep at the wheel as the landscape changes around them.”

*The author in no way suggests the reader stops watching Home and Away. In fact, he recommends more. Here is a 24/7 FAST channel that plays nothing but classic Home and Away episodes. At the time of writing, the 2002 episode where Will marries Gypsy was airing.

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