why digital marketing is important for small business header icon

Why Digital Marketing Is Important For Small Business: 2023

Digital marketing turns sheer online buzz into meaningful foot traffic.

Take one of my clients, Aloa, as an example. When I started working with them, they only had a $5,194 monthly traffic value. 16 months later, it went up to $126,198/mo – that’s a 442% growth. Of course, that isn’t without setbacks. But with some adjustments along the way, Aloa ranked for more search terms, and in turn, brought more high-intent visitors to their website.

Ready to learn why digital marketing is important for small businesses? How will it get you more leads and conversions? This post won’t just convince you to get started with digital marketing, I’ll also show you how to kick things off. 

Let’s get right to it.

7 Reasons Why Small Businesses Need Digital Marketing

If you’re still on the fence and want to stop betting your resources on traditional marketing methods, this is the article for you. 

As you explore this list, you’ll learn of compelling reasons why you should get started with digital marketing for your small business, find invaluable tools to use, and get actionable tactics to boost your digital marketing efforts.

1. 24/7 promotion

In the traditional advertising world, think commercials, billboards, and print ads – your promotion has a limited lifespan. It’s confined by time and space. 

With digital marketing, your marketing campaigns can be evergreen. They’re always on, always reaching your target audience without breaking your budget. 

Why does this benefit your small business?

Big enterprises often have deep pockets to run continuous promotions across various platforms. They can afford prime-time TV slots and full-page magazine spreads. 

For small business owners like you, your resources may be needed somewhere more pressing like expansion plans.

But here’s the silver lining: digital marketing tools level the playing field. With a fraction of the budget, you can get higher online visibility that rivals the big players.

How do you get this 24/7 promotional leverage?

Start with chatbot widgets on your website. They guarantee real-time engagement, answering common queries even while you’re offline or away for the weekend.

Here are the best 3 chatbots to check out:

TidioIt integrates with digital channels like Facebook Messenger and email. It streamlines your communication while automating tasks like form-filling to improve your customer engagement strategy.
HubspotIt offers lead capture by prompting visitors to complete a form before chatting and multi-language support to boost your ability to market to international customers seamlessly.
Tawk.toThis free tool gets you real-time visitor insights, automated prompts, and GEO IP tracking. Plus, you can customize the chat widget so it aligns with your business branding.

Make sure to maximize your presence on social media channels. These platforms are bustling activity hubs, day and night.

Use them to engage with your followers and run targeted ads. This approach makes sure your brand is always in the conversation and your potential customers’ minds.

Why Digital Marketing Is Important For Small Business - Hootsuite Social Media Post Scheduler

Image Source

You won’t even have to be online to post since tools like Hootsuite let you schedule your posts on all your social media accounts.

2. Bigger Market Reach

With online marketing’s power, you can now tap into a global audience even if you’re a local business. This boosts your visibility and reach.

Why Digital Marketing Is Important For Small Business - Traditional vs Digital Marketing

This is in huge contrast to traditional marketing methods that rely on local radio spots, direct mail, or bus posters to reach the local community. While effective for a local audience, they’re geographically limited.

Granted, big enterprises splash out on national or international advertising campaigns to reach a wider audience. But the costs? Prohibitive for small businesses.

With digital marketing, even a small budget can make a big difference for your business.

Why Digital Marketing Is Important For Small Business - Traditional vs Digital Marketing Costs To Reach 2,000 Audience

Image Source

How do you do this?

Use search engines and social media platforms to cast a wider net. They let you capture leads from every corner of the globe. Leverage content marketing to get you more organic traffic.

Dive deep into competitor analysis. Use Ahrefs’ Content Gap feature to spotlight opportunities you might be missing, getting you on an even playing field. It’ll let you identify what search terms your competitors are ranking for but you aren’t.

Why Digital Marketing Is Important For Small Business - Ahrefs Content Gap Feature

Moreover, utilize mobile marketing because 58.33% of global web traffic comes from mobile devices. With many consumers glued to their mobile devices, optimizing your digital channel for mobile guarantees you’re reaching potential customers on the go.

Boundaries are blurring and digital marketing offers you a golden ticket to play on the global stage, reaching audiences far beyond your local territory.

3. Faster Brand Awareness & Stronger Loyalty

Digital marketing channels like content marketing and social media are turning the tables, so you can experience the magic of real-time interactions with your customers. This lets you nurture relationships and cement loyalty.

On the contrary, old-school marketing meant paying for billboards and magazine features to get the word out for small businesses. These methods only offer limited interaction with your audience and don’t give them a way to engage with you.

Also, unlike large companies with expansive budgets to get prime TV ads and nationwide campaigns to boost brand awareness, your resources may not be enough to handle that. 

How do you use digital marketing to even the playing field?

Apply search engine optimization (SEO), social media marketing, and email marketing strategies to generate qualified leads and boost your brand recognition. These online channels let your local brand compete with industry giants. 

But to leverage those successfully, tailor your digital marketing campaign using data analytics. Let’s say your product is getting a lot of love on social media—likes, shares, and positive comments are pouring in.

Use this momentum and feature that product in your next email marketing campaign. Craft a compelling message that highlights its benefits. This lets you capitalize on the existing buzz and direct it to your targeted customers who may not be active on social media.

Why Digital Marketing Is Important For Small Business - Google Trends Results

Or suppose you uncover “sustainable fashion” as a trending search term in Google Trends in your country like Singapore. Create engaging articles or video content centered on sustainable fashion, positioning your brand at the forefront of current discussions and attracting interested audiences.

4. More Targeted Advertising

Digital marketing will help you navigate various digital channels with a compass finely tuned to their desired audience. That means no more casting wide nets and hoping for the best. 

Plus, you could make sure that every penny spent is directed towards an audience genuinely interested in what you offer. 

That’s a big change compared to what’s done in traditional marketing. Local radio spots, flyers, and newspaper ads are great for getting your brand name out in your community, but how many of those listeners or readers are your ideal customers?

As for the costs? Big enterprises have the luxury to spend lavishly on broad digital advertising campaigns, given their big budgets. For instance, a global brand might buy ad space during a major sporting event, reaching millions.

While you’re not at the level yet, digital marketing still allows you to get a shot and reach your intended market. 

To do this successfully, focus on studying your target customer’s behavior.

Leverage these tools to help you get data and analyze your customer’s behavior. 

Once you have the data, optimize your content around specific search terms or queries that your ideal customers are searching for. Dive deep into search terms to determine what your audience wants, making sure your content aligns with their search intent.

From there you can develop digital marketing campaigns that zero in on your target audience’s specific demographics, interests, and behaviors. Utilize search engine marketing and digital PR to promote your content and boost your campaigns.

5. Better ROI

The dream is to get out of the “small business” tag and be a bigger company. Digital marketing gives you a way to do that by increasing your ROI. With increased funds, you can expand and elevate your business, turning that dream of expansion into a tangible reality.

In traditional marketing, you would be investing in outdoor advertising (billboards, bus posters, etc.), TV commercials, or local ads. While these methods could work, they come with higher costs and less targeted reach. 

High-revenue businesses can afford to do that and run marketing campaigns on each possible traditional market avenue. As a local business, you’ll struggle to match a multinational company’s brand reputation and reach using traditional means.

However, the digital landscape changes the game with a fraction of the budget.


SEO, content marketing, and email marketing will give you impressive results. Look at these digital marketing channels and their ROI ratios:

Why Digital Marketing Is Important For Small Business - Digital Marketing ROI

Image Source

For every dollar invested in SEO, you can reap $22 in return, whereas email marketing offers an impressive $36 return on that same dollar.

Here’s a real-life case:

In just 16 months, one of our clients, Aloa, had a $126,198/mo traffic value, which is significantly higher than the $5,194/mo before Novum came to the scene. 

As a small business with a lean marketing team, these tactics will be your foundation for a strong digital marketing strategy that’ll give you more revenue with less costs.

For example, a well-optimized blog post, infused with relevant search terms and valuable content, can rank highly on search engines. This means that whenever someone searches for related topics, your post appears, driving steady organic traffic to your site without additional investment.

Consistently produce valuable content to establish your brand authority in your niche. This gets your intended audience to trust what you have to say and keeps them coming back to your site. 

Additionally, capitalize on email communications’ direct and personalized nature to nurture your leads and convert them into loyal customers. Your targeted email campaign, when crafted with your audience in mind, prompts immediate action.

6. Measurable Results

Digital marketing makes measuring progress easier. Every click, share, and traffic is tracked in real-time to let you see what’s working and what’s not so you can refine your strategies and maximize your resources. 

In contrast, traditional marketing would involve gauging an ad’s impact through direct customer feedback, tallying foot traffic after a local ad, monitoring sales spikes post-promotions, or using coupon redemption rates.

For example, if you’re running a local bakery, you might not know how many customers visited after seeing a flyer, but you can instantly see how many clicked on your online ad.

How do you fare against corporate practices?

Large companies have the resources to invest in extensive market research or surveys to gauge their campaign’s success. While these methods are effective, they can strain your budget and spread your resources thin.

However, with digital tools, you’ll get detailed insights. For example, while a multinational might invest in focus groups to gauge customer satisfaction, you can gather feedback through online reviews and social media posts.

But what metrics should you track to make sure your digital marketing strategies are effective?

6.1. Website Traffic

Google Search Console offers a detailed report on your content marketing efforts. It shows your site’s clicks, impressions, click-through rates, and the queries that land you on Google’s SERP. Plus, you’ll discover the countries driving your traffic.

Why Digital Marketing Is Important For Small Business - Google Search Console Performance Metrics

Image Source

6.2 Email Open Rates

Mailchimp provides data on how many recipients engage with your email campaigns through open and click rates. It shows you the average for those rates in your industry so you can gauge whether your campaigns need more work or you’re up to par with competitors.

Why Digital Marketing Is Important For Small Business - Mailchimp Click & Open Rates

Image Source

6.3. Social Media Engagement

You can see the likes, shares, and comments in real-time but if you want to compare your posts, Sprout Social offers comprehensive analytics. This gives you an idea of how your social media presence is going or what platform you need to focus on.

Why Digital Marketing Is Important For Small Business - Social Sprout

Image Source

With these digital marketing metrics and tools, it’ll be easier to measure, refine, and optimize your strategies. 

7. Better Flexibility & Scalability

In traditional marketing, once a billboard is up or a print ad is published, making changes is complicated and costly. 

For example, let’s say your local store is promoting a sale. If you want to adjust the discount or extend the sale dates, you’ll have to change your flyers or get new newspaper ads. That means your previous marketing materials are wasted and you’ll have to pay again to get new ones made.

In contrast, if your digital campaign is already running, but you want to tweak it based on a data suggestion that could attract more prospective customers, you can make real-time changes to optimize for better results.

But how does digital marketing help you fare against big businesses’ scalability and flexibility?

Big businesses, with their vast resources, can launch expansive campaigns across multiple channels. They can integrate digital marketing with TV spots, radio ads, and more.

Obviously, you’ll have to be more modest with your digital marketing strategies. For example, you might decide to prioritize on-page SEO to boost organic traffic for now, instead of going all-out with a comprehensive SEO strategy. 

However, you don’t have to worry because a multinational’s TV ad will stay static even for those corporations, but your small business can optimize your content based on immediate feedback, making sure you get the most bang for your buck.

Why Digital Marketing Is Important For Small Business - Digital Marketing Tools

But this doesn’t end here. You need to know and understand the challenges in digital marketing. Knowing potential hurdles helps you fine-tune your marketing efforts to reduce risks, maximize resources, and allow for a smoother strategy execution. 

3 Core Challenges To Overcome When Implementing Digital Marketing For Small Businesses

No strategy will be risk-free, including digital marketing. While you can’t control some situations, you can lessen the risks and possible problems. 

This proactive approach will help you get your small business out of trouble when you encounter challenges. Let’s explore what these threats are and watch out for golden nuggets on how to overcome them.

A. Digital Skills Gap

Without adequate expertise, your digital marketing journey will be more challenging than it needs to be. 

Why Digital Marketing Is Important For Small Business - Digital Skills Gap Statistics

Image Source

What should you do?

Consider investing in upskilling and reskilling your team. For instance, your content marketing efforts will get a boost if all in the team has more than basic SEO knowledge. Encourage your digital marketers to dive deeper into SEO, say for example, mastering keyword research using tools like Ahrefs and creating content.

Form external partnerships. Get you and your team involved in conferences, seminars, or specialized training programs to bridge the skills gap. This can help you get fresh perspectives and be updated with current best practices in digital marketing.

You should also encourage collaboration and knowledge sharing among your team members. Regular brainstorming sessions or cross-functional projects can help with this. 

B. Data Privacy & Navigating Regulations

Protecting customer data while effectively engaging your audience requires a delicate balance because as much as you want to learn your customer’s preferences, it’s equally vital to make sure their information isn’t accessible to other companies.

Why Digital Marketing Is Important For Small Business - Data Privacy Statistic

Image Source

How do you overcome this?

Clearly communicate your data usage policies and practices to potential customers. Tell them what data you’re collecting, how you’re using it, and who has access to it. This builds trust and will boost brand loyalty.

But that’s not all. Invest in robust cybersecurity measures to safeguard customer information. Regularly update software and train your team on data protection.

You should also educate yourself on data privacy laws, like GDPR or CCPA, that may apply to your business. Implement necessary procedures and documentation to comply with these regulations. 

C. Negative Feedback & Online Reputation

Negative feedback and online reputation can be formidable challenges because they can impact your brand’s credibility and deter potential customers.

Why Digital Marketing Is Important For Small Business - How Negative Feedback Affects A Business

Image Source

How do you deal with this?

Have digital marketers who have strong online marketing skills to employ strategies effectively and efficiently.

They’ll know how to respond to negative feedback with empathy. Acknowledge concerns and address them constructively. For example, if a customer complains about a delayed shipment, respond promptly, apologize for the inconvenience, and provide a solution, showcasing your commitment to customer satisfaction.

Accept mistakes gracefully and apologize when necessary. Honesty and accountability go a long way in restoring trust.

Also, invest in online reputation management to monitor your brand’s online presence and actively engage with your target audience. Encourage satisfied customers to leave positive reviews to offset negative ones. 

Understanding the challenges in digital marketing is a make-or-break for small businesses. However, equally important is monitoring industry trends to make sure you can compete in your niche.

3 Small Business Digital Marketing Trends To Look Out For

Knowing digital marketing trends puts you in the frontline of the race and lets you craft an effective digital marketing strategy that keeps your company online to resonate with a global audience.

However, it’s not just about being in the game; it’s about leading it and making sure your brand stays relevant, engaging, and primed for growth in the bustling digital marketplace. 

Ready to ride the wave of innovation?

I. Voice Search 

The premise is simple, it lets users ask questions and search online without typing. 

Now, why is this a game-changing trend in online marketing?

Because people speak differently than they type. Here’s an example:

  • Search engine input: “best Italian restaurants NYC”
  • Voice search: “Hey Siri, what are the best Italian restaurants near me in New York City?”

As you can see, users ask more conversationally when using voice search.  

To deal with this trend, be more conversational. Focus on targeting long-tail search terms and phrases that sound natural. Think about how people talk, not just how they type.

Additionally, voice searches are often questions, so create content that answers common questions in your industry. 

Leverage Answer the Public to uncover frequently asked questions within your niche. Simply input a search term, select your desired country and language, and choose a platform to retrieve tailored insights.

Why Digital Marketing Is Important For Small Business - Answer The Public Homepage

Adapt your SEO to consider conversational, voice-friendly queries to make sure they remain visible to your target audience.

II. Augmented Reality (AR) & Virtual Reality (VR)

AR overlays digital elements in the real world to improve user experiences, while VR immerses users in a fully digital environment.

As these technologies become mainstream, they’re shaping digital marketing strategy, offering immersive ways to engage your target audience. For small businesses like yours, this means an opportunity to provide interactive experiences that influence buying decisions.

For example, if you have a furniture store, you could offer an AR feature built-in in your mobile application to let your customers visualize how a sofa looks in their living room before purchasing.

Here’s a great example: 

Other than improving user experience, it can also boost SEO as customers research online for brands offering such immersive shopping experiences.

III. Video Marketing

This involves using videos to promote and elevate a brand’s message. Platforms like TikTok and YouTube have democratized content creation.

This lets your business, with a modest budget, reach vast audiences. This trend offers a dynamic way to showcase your products, tell stories, and engage customers.

Why Digital Marketing Is Important For Small Business - Video Marketing

Image Source

How do you ride this wave?

Develop your digital marketing skills in video creation and storytelling. Together with your social media marketing skills, you can leverage YouTube and TikTok to share videos that resonate with your audience and highlight what your brand offers.

For instance, if you’re managing a dog training business, you could post a tutorial on YouTube demonstrating a specific training technique, then share bite-sized clips showing training methods and success stories on TikTok.

As your viewers engage and share, you can increase your reach and reputation exponentially. Thus, driving more traffic to your site and getting you more clients.

What’s Next?

The reason why digital marketing is important for small businesses is that it ushers in opportunities that yesteryear startups could only dream of. Digital marketing helps level the playing field against your competitors, as well as bridge the gap between your business and a global audience. 

Every technique and tool you’ve encountered here holds the potential to transform your brand’s online presence. However, the key lies in application and adaptation. The digital age is dynamic and ever-evolving, what works today may not work next year.

Stay agile, apply what you’ve learned, and continuously refine your approach based on results and feedback.

Are you ready to elevate your online presence?

Novum is here to help you unlock your business’s full potential. With our tried and proven system, we’ve helped Estuary reach 2,407% of organic sessions.

We can optimize your digital marketing strategy, and together, we can drive your customer loyalty, engagement, and sales. Book your free consultation call now and let’s get started!


What is the importance of digital marketing for businesses in 2023?

It can drive lead generation, sales, and site traffic. But more than just numbers, it fosters deeper customer loyalty and engagement, making sure your brand resonates powerfully in a crowded online landscape.

Is digital marketing relevant in 2023?

Absolutely, digital marketing helps businesses thrive in 2023, remaining a cornerstone for brand visibility and customer engagement.

What will the digital marketing market be worth in 2023?

According to the “Global Digital Marketing Market Report and Forecast 2023-2028,” the digital marketing market is projected to reach a $523 billion value in 2023, up from USD 477.8 billion in 2022.

What are the digital trends in business in 2023?

The 2023 digital trends include:

  • Personalization
  • Cloud migration
  • Leveraging data
  • Partner ecosystem 
  • Artificial intelligence

Plus, there’s a heightened focus on sustainability in digital strategies, all tailored to improve user engagement and brand loyalty.

What are the challenges of digital marketing in 2023?

Digital marketers face challenges like navigating ever-changing algorithms, guaranteeing data privacy amidst stricter regulations, learning about customers, and standing out in an increasingly saturated digital space, all while maintaining authentic customer engagement.

What do marketers need to know in 2023?

In 2023, marketers should prioritize authentic storytelling, focus on quality over quantity, leverage user-generated content, create short-form videos, and harness interactive content’s power.

How do you market a small business in 2023?

Small businesses should craft compelling digital marketing campaigns, harness content marketing to tell their unique stories, and optimize their online presence using SEO to improve visibility and engagement. 

What is the best marketing strategy in 2023?

There’s no right or wrong answer for this one. The best marketing strategy in 2023 hinges on understanding your unique brand, the resources at your disposal, and the nuances of your target market.

Burkhard Berger

Founder @ Novum™. Letting wonderful companies become the Beyoncé of their industry (through modern SEO). Passionated about Unique.

Recent Articles

I guarantee real-world SEO results in your first month, or your next month is free. Curious about what makes Novum™ stand out from everything else you’ve encountered before? Let’s find out here.

Keep Learning

Let's make SEO your most profitable acquisition channel

⚠️ Our Holistic SEO 2.0 solution is currently fully booked, but you can join the waitlist to be notified as soon as a spot becomes available again.

Let's make SEO your most profitable acquisition channel

Let's make SEO your most profitable acquisition channel