What are the benefits of digital marketing in small businesses?

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In today’s fast-paced digital world, the benefits of digital marketing for small businesses are undeniable. It’s no longer a question of whether to invest in digital marketing but rather how to leverage its power effectively. Small businesses are increasingly recognizing the advantages of embracing online marketing strategies to stay competitive and thrive in their respective industries.

Digital Marketing Media Types

Before delving into the specific benefits, let’s take a closer look at the three overarching media types within digital marketing: Earned, Owned, and Paid Media.

Difference between Earned, Owned, and Paid Media

Earned Media

Earned media represents the organic exposure and visibility a business receives through word-of-mouth recommendations, press mentions, social media shares, and customer reviews. It is a testament to a business’s reputation and the quality of its products or services. 

Statistics show that 92% of consumers trust recommendations from friends and family over any other form of advertising. This underscores the power of earned media in building trust and increasing awareness.

To increase your earned media possibilities you may want to consider hiring a Customer Experience Professional, Content Writer, or PR Professional.

Owned Media

Owned media refers to the content assets a business creates and controls, such as blogs, websites, videos, and social media profiles. These platforms serve as valuable touchpoints for potential customers to engage with a brand.  Owned media also provides a platform to educate, entertain, and build a loyal customer base.

Did you know that websites with blogs tend to have 434% more indexed pages, which leads to more opportunities for organic search traffic?

To increase your owned media you will want to start with creating an engaging website that is professional and easy to use. Content writers or SEO Professionals are another great way to increase your online presence and expertise. Lastly, Social Media Managers are another good way to consistently engage with your customer base and increase value.

Paid Media

Paid media involves investing in advertising to promote your business. It includes paid social media campaigns, Google Ads, and other forms of online advertising. Paid media allows you to reach a wider audience and drive traffic to your website.

Statistics reveal that businesses make on average between  $2 and $8 in revenue for every $1 they spend on Google Ads. The return on investment (ROI) from paid media can be substantial.

To increase your paid media marketing and see a higher ROI you will want to hire a Digital Marketing Professional. You will want to make sure they are qualified to run at least Google and Meta campaigns along with other forms of online advertising.

Benefits of Online Marketing

Now that we have a better understanding of digital marketing media types, let’s explore the specific benefits of online marketing for small businesses.

Understand What Your Competitors Are Doing Online

Digital marketing tools and platforms provide valuable insights into your competitors’ online strategies. You can track their website traffic, social media engagement, and even their advertising campaigns. This information enables you to make informed decisions and stay competitive.

Provide Greater Customer Service

Online platforms allow you to engage with customers in real-time, addressing their inquiries, concerns, and feedback promptly. Social media, live chat, and email support create a seamless customer service experience, fostering trust and loyalty.

Attract More Customers

Digital marketing offers a multitude of channels to attract potential customers. Whether through social media, search engines, or email marketing, you can reach a broader audience and generate cost-effective leads.

Know Your Target Audience

Digital marketing tools provide valuable data on your audience’s demographics, behaviors, and preferences. This data helps you tailor your marketing campaigns to effectively target and engage your ideal customers. This also allows you to create a more robust buyer persona, guiding future traditional marketing efforts and business decisions.

More Marketing, Less Costs

Compared to traditional advertising, digital marketing often comes at a lower cost. It allows businesses to allocate their budgets efficiently, reaching the right audience without overspending.

More Measurable

Digital marketing provides extensive data and analytics. You can measure the success of your campaigns in real-time, allowing you to make data-driven decisions that enhance your marketing strategies. 

In addition, digital marketing can provide you with greater visibility into your customers’ interests, values, and pain points through data collection. 

Insourcing vs Outsourcing Your Digital Marketing

When it comes to implementing digital marketing strategies, businesses face the choice of outsourcing or insourcing their efforts. Each approach has its benefits.

Benefits of Outsourcing Digital Marketing

Outsourcing digital marketing allows businesses to tap into the expertise of seasoned professionals. These experts have years of experience in navigating the digital landscape, ensuring effective campaigns. Additionally, outsourcing can reduce overhead costs associated with hiring and retaining in-house employees.

Benefits of Internal Digital Marketing

Increased integration, greater influence, and cultural aspects of having employees.

On the other hand, internal digital marketing teams can seamlessly integrate with other departments, fostering collaboration and synergy. They have a deeper understanding of the company culture and can champion its values effectively. The fun aspect of having in-house employees dedicated to digital marketing is the sense of shared ownership and camaraderie.

Digital Marketing Channels for Small Businesses

Now that we’ve explored the benefits and considerations, let’s focus on the specific digital marketing channels that can benefit small businesses.

Social Media Marketing

Social media platforms like Facebook and Instagram offer a dynamic space for small businesses to engage with their audience. Organic posts, paid advertising, and interactive content are powerful tools for building brand awareness and generating leads.

Search Engine Marketing

Search engine marketing (SEM) and search engine optimization (SEO) are essential for small businesses looking to boost their online visibility. Effective SEO practices can lead to higher search engine rankings, driving organic traffic and positioning your brand ahead of competitors.

Blogs and Articles

Blogging and article writing establish thought leadership and expertise within your industry. By sharing valuable insights and information, you can build trust with your audience and position your business as an authority.


Videos are a versatile digital marketing tool. From short-form content like TikTok and YouTube Shorts to long-form videos on platforms like YouTube and Facebook Live, video marketing allows you to connect with your audience on a personal level and convey complex ideas effectively.

Email Marketing

Email marketing remains a potent tool for both B2B and B2C businesses. It enables you to nurture leads, send personalized messages, and drive conversions effectively.

In conclusion, the benefits of digital marketing for small businesses are vast and varied. By understanding the different media types, leveraging online marketing channels, and making informed decisions about outsourcing or insourcing, small businesses can harness the power of digital marketing to thrive in today’s competitive landscape.

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