Small firms in dark on web ads: survey

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The opportunities of online advertising are immense but many smaller businesses have no idea whether they are reaching potential customers, a new survey has found.

A survey of 1800 small and medium-sized enterprise (SME) owners by Yellow Pages found that 69 per cent did not measure the return on their online advertising investment.

Only 13.2 per cent based their decisions on where to advertise on their return on investment.

Sensis chief operating officer Gerry Sutton said most SMEs were unaware of whether they were reaching potential customers through their online advertising and how they could make it work harder for them.

In addition, 79 per cent of SMEs did not have a digital business strategy guiding their investment, highlighting the confusion that exists around the strength of online advertising.

"For SMEs, making the right decisions about where to advertise and how to find more customers requires a clear view of how the different elements of their advertising are contributing to the bottom line," Sutton said.

"This is why measuring and reporting return on investment is so important."

He said even more worrying was that SMEs were not sure where to turn for strategic advice on their digital marketing strategies, indicating there was a high level of confusion for them in the marketplace.

Only 4 per cent of SMEs are using the expertise of an online advertising supplier to make advertising decisions.

Almost one-third (30 per cent) of SMEs make decisions about where to advertise by asking customers how they found them, rather that using call tracking or online analytic tools, such as web blogs, which are often more accurate and cost effective.

"The world of digital media is growing and changing at such a rapid pace that it's no wonder SMEs are confused," Sutton said. "Being able to access the right professional advice is critical to getting the most from the opportunities on offer."

- AAP