Australian Businesses Slow To Take Up Online Marketing 

- April 4, 2016 2 MIN READ

A new study has revealed that just 22.6 per cent of Australian businesses are utilising online marketing channels. Digital marketing agency SponsoredLinx has developed an algorithm to analyse the online marketing activity of 10,000 businesses across Australia.

The research shows that New South Wales in leading the way, with 26 per cent of businesses using platforms such as Facebook advertising and Google AdWords. In South Australia, 18 per cent of businesses are utilising these advertising channels, the lowest figure of any state.

SponsoredLinx CEO Ben Bradshaw said digital marketing represented a missed opportunity for thousands of businesses across Australia. “Over the last decade the marketing landscape for small businesses has changed drastically.  The local newspaper or phonebook is no longer the go-to place for people when they are looking for a product or service,” he said.

“Instead they are beginning their search for information online. Google has become the modern day battlefield for businesses and it’s highly competitive. Most people searching for businesses online won’t look past the first few ads and search results listed on Google.

“Without a clear digital marketing strategy in place, businesses are at risk of missing out on great growth opportunities both here and overseas.”

Bradshaw said complacency was a leading factor behind the slow adoption of online marketing. “When we speak to businesses who are reluctant to implement an online strategy, one of the most common reasons they cite is that the majority of their clients are acquired through word of mouth.

“However we have seen this dynamic change in a number of industries. For example, only a few years ago, most home sellers chose a real estate agent based off their profile in the local area and face-to-face meetings at home inspections. Today, agent comparison websites have given sellers access to a suite of statistics and sales data which has shaken up the industry. Companies who don’t recognise these trends can quickly find themselves playing catch up.”

Google’s AdWord revenue has been on a steady growth trajectory for the last 15 years and totalled $67 billion in 2015.

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