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May 26, 2021
New Insights on Personalized Ads and Social Media’s Impact on Small Businesses
The coronavirus pandemic has had a tremendous impact on small businesses around the world, forcing business owners to change the way they sell their products and market their business. For many small businesses, social media and digital tools have become a lifeline.
Today, Facebook is releasing a new report from Deloitte called: Dynamic Markets: Unlocking small business innovation and growth through the rise of the personalized economy, which offers new insights into how businesses have changed and the impact that personalized advertising has had in helping businesses grow.
New Insights on Personalized Ads
The report surveyed 30,500 small-medium size business founders, owners and senior managers in 18 countries. The results highlight the role that social media and other digital technologies play in boosting the personalization of products, services and customer experiences. Small-medium businesses (SMB) shared that these tools helped them launch their businesses, grow, reach people in other countries and become more resilient to changing market conditions:
- 86% of respondents reported using social media to help start their business.
- 58% of respondents reported using forms of online crowdsourcing or social listening to develop new products and services.
- Small businesses using personalized ads were 16% more likely to report positive sales growth in the past year in comparison to those that did not use personalized ads.
Click the button below to download the full report.
Personalized Marketing Helps Small Businesses Grow and Extend Their Reach
The report explains how social media allows small-to-medium businesses to personalize and tailor their advertising to reach their target audience. Obia Ewah, Founder of US-based OBIA Naturals experienced the benefits of these targeting capabilities firsthand.
Ewah began developing her own haircare products in 2009 after successfully battling thyroid cancer at just 26 years old. After her diagnosis, Obia became aware of the potential risks that the chemicals in hair products can have. Obia developed organic, home-made alternatives for her own use, which laid the foundation for what would evolve into OBIA Naturals.
Starting in 2013, Ewah used personalized ads to target an audience that she modeled after herself — young women interested in an organic lifestyle. With the help of these ad campaigns, over time Obia grew a community of more than 80,000 followers on Facebook and Instagram and believes social media will continue helping her grow.
The report reveals that SMBs using social media were twice as likely to report that more than half their sales came from overseas customers.
“Our business wouldn’t exist in all these countries without social media,” Ewah says.
Businesses Don’t Have to Spend Much on Ads to See Their Value
Despite the low proportional average spending, the report finds that 74% of SMBs using personalized ads stated that they were important for the success of their business.
This study highlights how digital technologies can make it easier and cheaper for SMBs to personalize their business processes and have the potential to play a critical role in helping entrepreneurs to launch their businesses and then achieve sustainable growth.
Digital technologies and social media can help SMBs successfully develop tailored products, unlock the potential demand for their products and services and remain resilient in the face of economic turbulence.
Learn more by downloading the full report.
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