Myth 1: Smaller businesses can’t effectively use digital marketing tactics.
Not only can small- to medium-sized businesses (SMBs) cost-effectively use digital marketing tactics, but if they don’t, they will eventually find themselves at a competitive disadvantage. Surveys of SMBs typically find that digital marketing tactics are widely embraced and found to be effective at generating revenue. One recent study of 1,000 small businesses across various industries found that over three-quarters planned to increase their spending on digital marketing.
Increasing investments by SMBs in digital marketing are justified by key characteristics such as –
- Global reach – even small companies with an effective digital marketing campaign can speak to prospective customers regardless of their location. This levels the playing field against competitors regardless of their size.
- Capability to track and monitor marketing effectiveness – one of the most compelling selling points for digital marketing – collecting and analyzing the “footprints” of your customers and prospects allow you to attain a better understanding of your customers’ buying cycle – and act on that information.
- Building and reinforcing your brand – for many smaller organizations the cost of building brand recognition through traditional advertising or public relations is prohibitive. Digital marketing offers opportunities to get exposure without breaking the bank.
Myth 2: Analyzing digital marketing campaign results is too complex and expensive for smaller firms.
It’s not that most small businesses discount the value of using data analytics – according to a widely cited survey 51% of small businesses believe analytics are critical, BUT, only 45% track their data. Too many small businesses seem to embrace the myth that analytics is too expensive or too complex for them to apply to their businesses. While that might have been true a few years ago, it’s no longer true.
Analytical platforms that were expensive to acquire and required a mathematician or statistician to use have been streamlined and simplified. For example, the newest version of Google’s offering, Google Analytics 4, is used by more than 13 million websites to track traffic and customer behavior. Nine out of ten websites that use web analytics tools use GA4. GA4 offers users free access to a wealth of data including:
- Tracking customer conversions
- Insights into the value of purchases, user location, etc.
- Customization of dashboards and reports for easier access to data
- Measures of customer engagement.
Many GA4 users are self-trained and might augment their knowledge over time with formal training when they want to expand their use of the platform. Platforms such as GA4 offer the analytical capabilities that allow businesses to improve their digital marketing campaigns without the high cost and specialized talent that was once required.
Myth 3: Digital marketing isn’t as effective for B2B companies as for B2C companies.
The chart below tells a compelling story about how B2B companies have embraced digital marketing. If we look at actual spending on online media by B2B companies between 2019 and 2022 the compound annual growth rate for those years was approximately 14%. If estimates prove correct, the compound annual growth rate for the period shown below in the graph will be almost 21%. For B2C companies, if estimates prove correct, spending levels in 2026 will nearly return to the 2019 pre-pandemic levels. For B2B companies, it is highly unlikely we would find double-digit growth rates in spending over these 7 years if digital marketing was not proving effective. Billions of dollars would not continue to be allocated to ineffective tactics.
U.S. Actual & Estimated B2B Online Media Spending 2019 – 2026 $BB
The nature of the B2B marketplace is different from that of B2C companies. For example, the sales cycle for B2B companies can be much longer and more complex involving many decision makers. Sites such as LinkedIn are productive platforms for B2B marketers. Digital marketing has proven its value in helping B2B companies generate high-quality leads, build brand awareness, establish trust and credibility, increase reach, precisely target market segments, and grow revenues.
Myth 4: Organic SEO is the most cost-effective digital technique.
Organic SEO (unpaid search) can be a very effective digital marketing tactic – and having a high-quality and user-friendly website is a must. The drawback to organic search is when companies, primarily SMBs, rely too heavily on organic search for lead generation. Because there is no purchase of placement for search results, it can appear to be one of the most cost-effective digital marketing tactics (and for some firms it is) but an overreliance on organic search can start to have diminishing returns when it displaces other, often more targeted, tactics.
SEO is great if you can appear on the first page of Google results. One study found that nearly 60% of all organic clicks go to the first position. Position two garners 15% of all clicks. Position eleven, the first position on page 2 receives only 0.17% of all clicks. SEO can be an effective lead-generation tool but expectations about its value should be tempered by knowing how difficult it is to consistently attain high page rankings – and understand that the audience you do attract might not match your target market. Organic SEO might not end up being your most cost-effective digital marketing tactic.
Myth 5: Digital marketing is really the domain of the marketing team – the sales team doesn’t need to get involved.
The selling process has changed. Sales prospecting, often involving indiscriminate cold calling, used to be a somewhat effective lead-generation technique. Statistics about the effectiveness of this type of cold calling vary widely. We suggest that you speak with your salespeople as your industry or offering might make it harder – or easier than average for the salesperson to connect with a good prospect. One widely cited survey found that 87% of respondents said they often or very often ignore phone calls from unknown numbers. Salespeople can spend too much time on too little results.
Many organizations have found that they can improve their sales team effectiveness by closely aligning marketing and sales. A study by the Aberdeen Group found a significant payoff arose from aligning marketing and sales. The numbers are stark:
- 32% higher revenue
- 36% higher customer retention
- 38% higher win rates
Other research has found that B2B firms that have closely aligned sales and marketing operations attain 24% faster three-year revenue growth and 27% faster three-year profit growth. In practice, the synergies from combining the knowledge that marketing brings on how to effectively leverage digital tactics coupled with the customer buying insights garnered by the sales team can produce a lead generation process capable of educating prospective customers who are actively looking for your products and services thereby enhancing the effectiveness of your sales efforts.
Seize the opportunities digital marketing offers.
Digital marketing done right offers you a competitive advantage. If your organization has been hesitant about applying digital marketing tactics or you haven’t received the anticipated benefits, we encourage you to look at what other firms – perhaps including some of your competitors have achieved through their digital marketing initiatives. We can help you develop or refine your digital marketing programs.
