Press Releases

Small Business Falling Behind Mid-Tier Businesses Due To Inadequate Marketing Resources

08 August 2017

Small Businesses Falling Behind Mid-Tier Businesses due to Inadequate Marketing Resources

Sydney, Australia – 8 August, 2017: New research by leading Australian marketing services business, Salmat, reveals while half of (51%) Australian small companies* (1-24 employees) said they would increase their marketing spend 2017, most of them lack the time and resources to invest properly in marketing, limiting their ability to reach and convert customers against the better resourced mid-tier businesses* (25-200 employees).
Among their pain points, only 23% can afford to have a dedicated person for marketing, which hinders their ability to effectively plan. Almost two thirds of respondents (62%) said they were planning their marketing strategy only three months in advance, and nine out of ten (88%) six months in advance.
Their ability to measure their marketing campaigns is also a challenge that many are facing. Only 52% of small businesses say they measure their campaigns often, vs 75% for mid-tier businesses. Their two main barriers for measurement is the lack of time (44%) or lack of knowledge (18%). When they do assess their campaigns, small businesses fail to use the insights as much as mid-tier companies to improve their campaigns (58% vs 67%).
Accessing proper training is also proving to be a major challenge for small businesses. More than one in five respondents said they will not be doing anything to improve their marketing skills this year (22%). A third said (33%) they don’t have enough time, with a fifth not knowing how (21%), and another fifth not having budget (19%).
As a result, mid-tier companies have a significant advantage over small businesses. In 2016, 60% of mid-tier companies increased their marketing budget, twice as many as small businesses in the same period (32%). And while 51% of small companies are planning to increase their budget this year, it is generally because they need to increase sales (30%) and grow the business (26%), whereas mid-tier businesses are increasing budgets because revenue has increased (32%).
Salmat Head of Marketing, Ben Hillman said: “Time and resources are the biggest challenges small companies face, meaning that marketing activities sometimes fall by the wayside. It’s impossible to do everything, so small businesses should focus their energies on planning and evaluating their current marketing activities so they know what is and working. They can also increase their skills and knowledge without paying a fortune by reading trade media, attending online webinars and subscribing to online self-training platform.”

Looking at the channels small businesses plan to invest in for the first time this year, letterbox drops comes out on top (13.9%), followed by events / trade shows (12.7%) and their websites (12.3%).
“It is not surprising to see small businesses turning to letterbox as a new channel, as most small businesses rely on the local community for sales. Letterbox is an effective way of engaging a highly targeted local audience through the use of targeting tools that enable granular targeting based on more than 50 variables ,” says Hillman.
The survey also reveals a gap between investments in websites and Search Engine Marketing or Optimisation. While small companies spent most of their budget on their website in 2016 (57.5%), only 7.1% and 2.4% respectively invested in SEO and SEM.

“SEO and SEM is often viewed as complex by small businesses, which stops them from using these tools. However, small investments in search can translate into a competitive edge. You don’t need to be an expert, you just need to be better than your competition.

“To get the most out of their marketing, small businesses must understand their target audiences to craft relevant campaigns. When planning a campaign, be sure to consider what your competitors are doing, and what data you can access about your customers and potential customers. There are plenty of online tools such as Google Analytics and Swiftplan that are accessible to small businesses, allowing them to collect and use an increasing amount of data to improve their marketing efforts.” said Hillman.
The figures in the report are based on a study 
conducted by SSI between December 5th 2016 and January 19th, 2017. The questionnaire was administered online, across 500 marketing decision makers. The data in this release was based on a sub-section of that sample, specifically 250 marketing decision makers in small businesses, defined as having less than 25 employees.

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For further information, please contact:

Shane McClelland
Senior Manager - Corporate Communications
+61 423 603 105

Sebastien Meunier
WE Buchan
Account Manager
+61 292 372 809

About Salmat
Salmat is a leading Australian marketing services business. We partner with our clients to help them with the constant pressure of acquiring and servicing their customers, week-in, week-out. With media, digital and contact capabilities, we have the right solutions for our clients, enabling them to Reach, Convert and Serve more customers.
Founded in 1979, Salmat has evolved from a small letterbox distribution business to an ASX-listed company. With a talented team across four countries we work with some of Australia’s most recognised and trusted brands to manage billions of customer interactions every year.
Reach: We offer the broadest reach media (online & offline), with the ability to target individuals and up to 17 million people. Convert: We deliver conversion across multiple channels, creating more opportunities for our client’s customers to buy. Serve: We make every one of our client’s interaction count online and offline.

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