The Facts

Small businesses that leverage digital marketing can significantly enhance their reach, engagement, and profitability.

According to Statista, over 4.5 billion people worldwide use the internet, and more than 3.8 billion people are active on social media platforms, making these channels powerful tools for businesses to connect with a vast audience. Additionally, HubSpot reports that 64% of marketers actively invest in SEO to increase website traffic, while 81% of people research products online before making a purchase (Source: Nielsen).

Digital marketing also offers cost-effective solutions for small businesses. For example, small businesses can run targeted Facebook ads with a budget as low as $5 per day, reaching a highly specific audience. Email marketing boasts an impressive ROI, with every $1 spent yielding an average return of $42 (Source: DMA).

Moreover, small businesses can track campaign performance in real-time, allowing them to adjust strategies for maximum impact. By using digital marketing, small businesses not only stay relevant in a crowded marketplace but can also compete with larger brands by engaging customers where they spend the most time: online.

1. Digital Marketing Spend by Small Businesses

  • Small businesses spend approximately 6-10% of their annual revenue on marketing.
    *Source: The Small Business Marketing Trends Report by HubSpot, 2023).

  • According to a 2023 Clutch survey, small businesses allocate around 30% of their marketing budget to digital marketing, with search engine optimization (SEO), social media, and email marketing being the most popular channels.

2. Social Media Advertising Investment

  • A 2022 report by Hootsuite found that 47% of small businesses planned to increase their investment in social media marketing in 2023, with Facebook, Instagram, and TikTok being the top platforms for ROI.

  • 61% of small businesses use paid social media ads, with small businesses spending an average of $200–$800 per month on social media marketing campaigns (*Source: Fundera by NerdWallet, 2023).

3. E-commerce Spending

  • Small businesses are increasingly investing in e-commerce. According to a 2023 survey from Shopify, 42% of small businesses in the U.S. reported increasing their e-commerce spending by 10% or more year-over-year, particularly as more businesses build out their online stores and improve the customer experience.

  • The average small business in the U.S. spends $1500+ annually on e-commerce software (platforms like Shopify, BigCommerce, etc.) to set up and maintain online stores (*Source: Tech.co, 2023).

4. Search Engine Optimization (SEO) Spending

  • A 2023 study by Ahrefs found that 60% of small businesses plan to invest in SEO in the next 12 months, with SEO being one of the top five digital marketing activities for businesses looking to increase online visibility.

  • Small businesses that invest in SEO see an average increase in traffic of 30-50% within the first 6 months of implementation.

5. Email Marketing Investment

  • Email marketing remains a highly cost-effective channel. According to the Direct Marketing Association (DMA), small businesses see an average return of $42 for every $1 spent on email marketing, making it one of the highest-ROI channels for small business marketers.

  • Approximately 60% of small businesses use email marketing, investing an average of $300–$500 per month on email marketing platforms such as Mailchimp or Constant Contact (*Source: Small Business Trends, 2023).

6. Mobile Marketing

  • Small businesses have significantly increased investment in mobile marketing. According to BIA Advisory Services, in 2022, small businesses allocated around 30% of their marketing budget to mobile channels, including mobile search and in-app ads.

7. Influencer Marketing

  • 11% of small businesses report using influencer marketing, and 38% of them plan to invest more in influencers to drive product sales. This shows a growing trend toward partnerships with micro and nano influencers (*Source: Business News Daily, 2023).

These data points highlight how small businesses are increasingly shifting their marketing investments toward digital channels—especially social media, SEO, and e-commerce platforms. They reflect a broader trend where businesses of all sizes are relying on digital tools to increase visibility, engage customers, and grow revenue.