Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Small marketing spend dilutes the value of SME websites

Small marketing spend dilutes the value of SME websites

50 per cent of SMEs spend less than $1,000 annually on Marketing

A third of SMEs with websites get less than 50 visitors a week

Many New Zealand small to medium sized enterprises (SMEs) rely on word of mouth to deliver new business and spend modestly on digital marketing, according to new research released today from Dot Kiwi.

While only half of SMEs have a website (56 per cent) and most use email to communicate to their regular customers (81 per cent), even fewer use common marketing tools such as search engine optimisation (SEO) and digital advertising, which are being used by larger companies such as banks, retailers and utilities to their advantage.

The research carried out by Dot Kiwi, the internet domain name provider, found that 50 per cent of SMEs spend less than $1,000 annually on marketing, relying on existing networks and word of mouth to deliver new business enquiries. As a result, there is a direct correlation between their web traffic and their marketing spend, with low spend correlating with low visitor numbers.

A third of SMEs with a website say they receive less than 50 visitors each week, whereas 25 per cent had no idea about their web traffic numbers.

Angus Richardson, Managing Director of Dot Kiwi, said SMEs should be tracking their website visitors, at the very least, so they can track the effectiveness of their sales and marketing efforts. Beyond that, for a relatively low investment, website owners should optimise their existing digital assets by applying some automation to their marketing to make it quicker to communicate with customers.

“Many business owners don’t appreciate the value of a website visitor. Once a visitor is at your website, you have the chance of converting them to a customer either through e-commerce, an online newsletter, or a social media connection. 60% of New Zealand SMEs can’t take payment on their website, but that doesn’t mean they can’t convert someone into a newsletter subscriber.”

35 per cent of SMEs say they receive most of their enquiries from their website, but there is potential to do more.

“Using search engines such as Google and Bing has become routine for New Zealanders when looking for a business, product or service. It might come as a surprise though, that only 77% of SME respondents said they use them when searching for businesses online. 18% search the internet by typing in web addresses, while 4 per cent use a directory service.”

Despite the importance of search, only 27 per cent of SMEs optimise their website using SEO, and 22 per cent use paid search engine advertising. That is set to increase, as 15 per cent of SMEs will look to engage SEO and 16 per cent paid search engine advertising.

“SMEs are waking up to the prospects search engine marketing provides, but most are ignoring the benefits of a domain name strategy. Only 10% of SMEs have multiple domain names despite the volume of business searches being conducted through “type-in” traffic.

“SEO and paid search engine advertising are obvious, most prospective customers search for businesses that way, so make yourself visible in their results. Beyond that, owning a bundle of domain names captures that 18% who search by web address, while helping to avoid having your brand abused in phishing scams,” says Richardson


ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

TradeMe: Property Prices In Every Region Hit New High For The Very First Time

Property prices experienced their hottest month on record in December, with record highs in every region, according to the latest Trade Me Property Price Index.\ Trade Me Property spokesperson Logan Mudge said the property market ended the year with ... More>>

Motor Industry Association: 2020 New Vehicle Registrations Suffer From Covid-19

Chief Executive David Crawford says that like some other sectors of the New Zealand economy, the new vehicle sector suffered from a case of Covid-19. Confirmed figures for December 2020 show registrations of 8,383 were 25% ... More>>

CTU 2021 Work Life Survey: COVID And Bullying Hit Workplaces Hard, Huge Support For Increased Sick Leave

New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ... More>>

Smelter: Tiwai Deal Gives Time For Managed Transition

Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed to working on a managed transition with the local community,” Grant Robertson said. More>>

ALSO:

OECD: Area Employment Rate Rose By 1.9 Percentage Points In The Third Quarter Of 2020

OECD area employment rate rose by 1.9 percentage points in the third quarter of 2020, but remained 2.5 percentage points below its pre-pandemic level The OECD area [1] employment rate – the share of the working-age population with jobs – rose ... More>>

Economy: Strong Job Ad Performance In Quarter Four

SEEK Quarterly Employment Report data shows a positive q/q performance with a 19% national growth in jobs advertised during Q4 2020, which includes October, November and December. Comparing quarter 4, 2020, with the same quarter in 2019 shows that job ad volumes are 7% lower...More>>

NIWA: 2020 - NZ’s 7th-warmest Year On Record

The nationwide average temperature for 2020, calculated using stations in NIWA’s seven-station temperature series which began in 1909, was 13.24°C (0.63°C above the 1981–2010 annual average). New Zealand’s hottest year on record remains 2016, when... More>>

Quotable Value New Zealand: Property Market Set To Cool From Sizzling To Warm In 2021

Nostradamus himself could not have predicted the strange series of events that befell our world in 2020 – nor the wild trajectory of New Zealand’s property market, which has gone from “doom and gloom” to “boom and Zoom” in record time. Even ... More>>