A recent report, Advertising Part 2: How Advertising can unlock UK growth potential, show that only 30 percent of SMEs spend their resources in advertising for growth and development as well as to compete with established brands.
Published by Deloitte and the Advertising Association, it is revealed that SMEs account for fifty percent of work in UK and 40 percent of nation’s income but only 18 percent of the entire advertising expenses.
About 40 percent of small businesses aim to make marketing the top priority along with fund raising for business growth. However, these businesses need the right guidance in order to be successful.
Most small businesses see advertising as an expensive element to incorporate, which becomes a hindrance for them to invest in.
They should realise the potential of social and digital platforms as their advertising tools. Content marketing and social media marketing are ideal methods as they are affordable than any traditional advertising strategy.
However before you offer your products to the audience, you have to determine your marketing goals and then place the budget to achieve these objectives. If you have identified your target audience and you know how and where to reach them, then it is time to develop an effective marketing strategy. You could include other marketing disciplines such as PR and advertising to bring the desired result.
The report also stated that advertising is a huge factor for growth. Each £1 spends on advertising increases growth eight times more. In fact, 59 percent of medium-size businesses that use advertising show boost in sales.
Marlon Wolff, CEO of Ingenious Britain, a business advice agency, said that if the advertising industry is serious about encouraging small business to advertise, then they should show the strategies that are affordable and could generate valuable results. He also stated that although the report presents a valuable insight, it does not reveal a solution.
There are tools available for SMEs in order to advertise cheaper and proficiently. Internet provides numerous options in order to compete with the giant brands.