| NEWS ARCHIVES |
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| More SMEs turning to online marketing but not effectively |
| 4 Nov 2009 |
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By Yasmine Yahya
A recent survey has found that small and medium enterprises are now relying heavily on the Internet as their main advertising and marketing platform, given its low cost and wide reach.
But the study also shows that many of these firms are not using the platform effectively.
Among the 100 firms surveyed, almost 70 percent currently use email as a marketing tool and 52 percent are using social media networks such as Facebook, YouTube and Twitter.
In contrast, the survey conducted by marketing consultancy firm, NetProfitQuest, found that only 37 percent of the firms are buying ad space in newspapers, and fewer than 10 percent are spending on television or radio airtime.
The study also found that 80 percent of the firms are either considering putting a larger proportion of their marketing budget into social media, or definitely doing so.
NetProfitQuest CEO, Willy Lim, says the financial crisis was one major factor that has pushed firms to turn to alternative media as a marketing platform, as it costs virtually nothing to send out an email or set up a Facebook account.
But he adds that there are also long-term trends at play.
"It has to do with major shifts in consumer behaviour. Consumers are increasingly resistant to interruptive, one-way advertising and increasingly saying yes to inbound marketing. As in, they search for information themselves before they approach the company to buy their products and services. "
Despite the increasing reliance on online marketing, only 12 percent of the firms receive more than half of their sales enquiries through online channels.
For a third of the firms, none of their sales enquires come from online channels at all.
Mr Lim says this shows that most of the firms are not harnessing the power of the Internet effectively.
"That shows a huge gap -- they are willing to do it but they are not getting the results. It's a lack of a structured manner in the formulation, planning and implementation of social media marketing strategies and tactics. "
95 percent of the firms surveyed came from Singapore and Malaysia, with the rest coming from other parts of Asia and the US. |