Many Small and medium enterprises(SMEs) in South Africa are bootstrapped for marketing budgets,which between traditional and e-Marketing would help brands communicate their voice on a compact budget. The choice between different marketing strategies remain a huge challenge in the SMEs functional operations with most making costly mistakes in deciding on efficient strategies. These marketing method are wrestled against each other to present a best choice.

The first round is decided on the type of business the SMEs is involved in. The second round on the form of campaign objectives envisaged. Third round on the audience numbers that the business is offering its goods/services to and then cost and return on investment(ROI) is a top priority in gauging an efficient marketing strategy and thus a final factor in awarding this title.

  1. The type of business

It is crucial to determine whether the SMEs is in the business to business(B2B) or business to customer(B2C) space. The landscape in South Africa is interesting to observe, out of the 2,3 Million SMEs , almost half operate in trade and accommodation. These service industry dominate the features of SMEs landscape in South Africa.

Traditional marketing is focused on mass targeting with the same advertising which is better suited for B2C in the space whereby the customer share a common interest(for instance food). e-Marketing accommodate both B2B and B2C businesses ,in the online space ,customer are not mass targeted and each and every customer is reached in their unique way.

2. Campaign objectives

Marketing plan forms a huge integral part of the objectives of any small business, is the business running an awareness campaign? is the business looking to drive up sales ? before any action can be taken, SMEs must answer these questions first.

e-Marketing offers solutions to achieve any marketing objectives, including a search campaign to reach customers who are actively searching for a brand online. Display campaign to build brand awareness for customers who have interest that are similar to what the brand offers. A video campaign to engage and stimulate audience with visual content. A website conversion campaign to drive traffic to a SMEs website and a shopping campaign to encourage online purchases or booking of services.

Although traditional marketing offers some of these campaigns ,it delivers these campaigns in a rigid manner. A brand looking to build awareness among potential customer would be forced to focus on conversions also. The instantaneous is denied and customers are alienated from interacting with brands.

3.  Audience numbers(Potential customers)

The number of audience for a particular media remains a selling point for most SMEs ,South Africa boost a huge population of adults at 38,7 million (age 15+) . This create an opportunity for SMEs to target a particular media consumption as opposed to a futile one.

Traditional media consumption has considerable numbers with television viewership at 89.9%(34 million) on audience that watched yesterday. Radio listener-ship comes second at 69.9%(27 million) and cinema goers at 0.2%(77520) for July – December 2016.

e-Marketing media consumption on users figure has piqued considerable over the years with those adults who used internet at 38.8%(15 million) ,then users who had read a newspaper article online at 11.0%(4,2 million) and those who had magazine article online at 3.9%(1.5 million).

4.  Cost and return on investment

SMEs operates on small margins ,accounting for every expenditure on a bootstrapped budget therefore cost of marketing and return on investment is a bigger picture in choosing an effective marketing strategy. A CMO survey in 2015 found that small business to business firms spent around 7-8% of their annual budget on marketing. That figure rose to 9% for small business to consumer companies.

The average cost of an ad on Google AdWords is currently R 27.84 per click .The average cost of an ad on Facebook is currently R 20.64 per click and an average standard banner cost R 396.50 on major online media site ranging from business and finance to interest on women lifestyles.

Traditional marketing is popular with large business that command a bigger marketing budget ,The average spot on SABC1 spread 19:00 to 22:00 between September 2016 and August 2017 cost R 78,669. In this period the station delivered 4,785,400 adults daily at an average cost per thousand of R 27. Daily sun is a major  newspaper published by Media24 in English, distributed weekdays mornings. Its ABC circulation April-June 2017 is 164 900 and a single column centimetre Full Cover is R 444.00(2017, exc VAT & agency commission).

In the four rounds ,traditional marketing is undefeated in the ‘potential customers ‘ rounds but its knocked on the other three rounds in the ring by e-Marketing. The former remains exclusionary and dead place for creativity and innovation, the latter may reach half of the ‘potential customers’ but its method are best suited for SMEs on a limited budget . e -Marketing offers tailored made solutions to the type of business the SMEs might be positioned, with ample campaign options at varied cost and high return on investment.


Contact us for any e-Marketing solutions for your SME



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