Online advertising brings $152bn annual revenue to SMEs. It could be more
Online advertising is generating an estimated $152 billion in annual revenue for Australian SMEs, with the potential to rise to $231 billion if adoption and capability continue to expand, according to Google-funded research.
The report, Gains From Online Advertising for Australian Small and Medium Enterprises, was written by NexTrade, which surveyed 1100 SMEs and highlights the growing role of digital advertising as a driver of small business growth.
More than three-quarters of SMEs already use online advertising, while a further 21 per cent plan to adopt it this year as businesses increasingly turn to digital channels to drive sales and reach new customers.
However, the report found that many SMEs face challenges that limit their ability to fully capitalise on the opportunity, with 90 per cent of respondents citing limited budgets as a key barrier, and 83 per cent saying they lack the internal tools or technical expertise required to maximise their online advertising efforts.
Bec Turner, government affairs and public policy manager at Google Australia, said strengthening digital capability among small businesses could play a key role in lifting national productivity.
“Online advertising gives SMEs a practical way to reach customers, grow revenue and compete more effectively,” she said.
“When paired with tools like automation and AI, it can also help business owners save time and make smarter decisions about where to focus.”
The findings are particularly relevant for regional businesses. With around one in three Australian companies operating in regional or remote areas, online advertising can help overcome geographic barriers and expand customer reach.
The report also found that businesses already using AI in their advertising strategies are seeing stronger outcomes.
Around 40 per cent of micro businesses and 52 per cent of medium-sized businesses that integrate AI for functions such as fraud prevention, targeting, and analytics reported stronger revenue growth and higher export intensity than their peers.
Digital agency owner Jemma Mrdak said online advertising has allowed small businesses to reach customers beyond their immediate networks and compete with larger firms without significant marketing budgets.
“Online advertising has allowed me to reach clients beyond my immediate network and compete with much larger agencies, without needing a big budget,” she added.
“Being able to see what is working and adjust in real time gives small businesses a real sense of control over their growth.”
- This story was originally published on Inside Small Business.
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