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Dublin: 7 °C Thursday 23 May, 2013

Irish SMEs are ‘stuck in the 20th century’

A survey has found that some Irish SMEs don’t use social networking site to promote themselves – and some are even still using faxes to get the word about about their services.

Some businesses still try to promote themselves using fax
Some businesses still try to promote themselves using fax
Image: Abhisek Sarda via Creative Commons/Flickr

SMALL AND MEDIUM sized businesses in Ireland are “stuck in the 20th century” and continuing to use outdated and traditional methods of communication instead of embracing social networking as a way of promoting themselves, according to a new survey.

Many are still opting to send daily emails, telephone calls and even faxes to promote their businesses – with 40 per cent never using Facebook and 48 per cent never using Twitter to do so, the research by the DG Group revealed.

“Small to medium sized businesses are living in the past and not taking advantage of the fantastic online tools that they have at their disposal,” said Franco De Bonis, Co-founder, The DG Group.

“As our economy is flat lined, the world of digital marketing has accelerated. This new era of marketing holds the solutions to many of the problems that businesses face in expanding their revenue and customer base,” he added.

According to the research, 25 per cent of SMEs say they “do not understand” digital marketing. The large majority of companies said that they do not have a mobile web site or a promotional video –  the main reasons for which being budgetary concerns or a lack of understanding about the benefits posed.

Main findings:

  • 76 per cent do not have a mobile website
  • 71 per cent do not have a promotional video for their company
  • 40 per cent never use Facebook, 48 per cent never use Twitter, 46 per cent never use LinkedIn
  • 66 per cent want to implement digital marketing campaigns but are frustrated by a lack of knowledge or time
  • 59 per cent do not dedicate specific time or budget to promote their business
  • 32 per cent of respondents currently use Google Adwords and 18 per cent have abandoned it
  • 8 per cent use Facebook advertising and 14 per cent have abandoned it

“We have found that because business owners don’t understand how digital marketing can help them and struggle with the intricacies of the many tools available, they either do nothing or do too much on their own,”  De Bonis said. “Either way they are losing out as they’ll be missing out on potential business and in many cases wasting their hard-earned budgets on bad campaigns.”

To help business owners, the group has organised a free digital marketing event which is being held on Thursday 19 April 2012 at Bewleys Hotel, Newlands Cross (N7) in the Joyce Room, 6pm – 8pm.

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Comments (22 Comments)

  • Rubbish infomercial article. The problem with social networks is that there’s such an amount of crap flowing through them that a lot of people take time out to filter content on their feeds. Some company placement will get lost that way. Also, I’d personally rather receive a listings mail once a week than numerous Facebook reminders about “what’s on tonight” at a pub. I find that after a certain amount of time frequent messages like that get annoying, hence another round of filter updates.

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  • Did the survey ask how many SMEs had broadband?

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    • I would have thought that it only matters that their customers have broadband access.

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    • If the SMEs don’t have broadband they don’t do much online except (slow) email. But yes I agree not all customers are on social networks either and for some businesses it’s not actually relevant. I run the online presence (from a city far away) for my parents (in rural Ireland) – very little activity online in the area and very little business generated online unfortunately.

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  • “Company that sells digital market services are encouraging more Irish businesses to use their services” would have been a better headline. Is this a paid for / sponsored story? Junk.

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  • Journal.ie whoring itself out for a few bucks, or else an author corting out a mate with advertising masquerading as an article. Dave Milligan is right, “Company that sells digital market services are encouraging more Irish businesses to use their services”. This is shamlessly blatant.

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  • “Company that sells digital marketing services are encouraging more Irish businesses to use their services” would have been a better headline.” Is this a paid for / sponsored story?

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    • Hi Dave,

      Yes, it’s true that we offer digital marketing services, amongst other things. Then again it’s unlikely that we would have any interest in running this research if we were chicken farmers ;-) But no this is not a paid for story and we are happy that this story had enough interest for The Journal to pick it up.

      We decided to run this research and the free event in conjunction with a number of companies who also shared my interests in this area because of the anecdotal evidence that pointed to SMEs not engaging properly, engaging incorrectly and in some cases doing too much of the things that they shouldn’t do.

      Anyone who runs a digital marketing agency would agree that their customers would be better served creating content about their business and posting it on their websites and blogs rather than trying to manage a PPC campaign that they don’t fully understand. This is at the heart of the message we are giving to the attendees of this event.

      It is true that much of the results we saw (and continue to receive) backs up our anecdotal evidence, however there were some very eye-opening datapoints. Namely the high abandon rate of Adwords and Facebook advertising amongst SMEs.

      So, of course we are not a charity and it may be that my company or one of the other organisers will benefit from new customer engagements and they would be welcome, but our main goal here is to educate attendees and ultimately brand awareness for all involved. In other words, attraction marketing in its purest form.

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    • The datapoint that interests me is actually the one you point out. Not so much the high abandon rate, as the suggestion that fully 50% of Irish SMEs either have used or still use Google Adwords. I was quite surprised by that, it does not tally at all with anecdotal evidence as I’d see it. I’d be far more likely to guess that 50% of SMEs have no idea what Adwords is. Of course it depends on the sample and the type of businesses.

      But I do agree that PPC campaigns are not easy to manage in a way that ensure a decent return on investment – whether the investment is in time or money.

      I’d encourage a business thinking of getting into this to seek out someone with a Google Adwords Certification as a starting point, then to speak to several previous customers of anyone they are considering employing. Every marketer and his dog claims expertise and great results on their website. Many, many businesses have been suckered in by this sort of marking bumff, only to find themselves with much lighter pockets and little else to show for the experience. It’s one of those areas where really and truly you cannot be too careful.

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  • Most business’s ask how do I get a good Google listing when they build a new size. They fail to see that it’s the social sites linking back to there main sits that will give them more bang for there bucks. The new Web 2.0 is also much cheaper to setup then companies realize.

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    • Its funny how the people who did this research last update their twitter feed a month ago! They are hardly setting a good example.

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    • Hi David,

      I think this is the whole point of the survey and the event we are going to run. We talk about regular updates and being reasonable with the expectations. To give an analogy from real-life, I am sure that we would all want to exercise every day and fitness experts would say that would be excellent, but even exercising once a week is better than nothing if that’s all you can do and IF you exercise correctly when you can.

      With that said, organising this event has taken it’s toll on my ability to engage in my usual activities, so thanks for the kick in the backside ;-)

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    • Fair enough Franco, I see you updated your Twitter feed! ;)

      I don’t know anything about you or your company so this isn’t directed at you. My point is more of a reflection the whole digital marketing industry in Ireland. There seems to be a lot of traditional marketing professionals jumping on the digital bandwagon that don’t seem to understand it, they are there because it the next BIG thing. Many SME’s are being led by the blind in some cases. Its the lack of digital marketing knowledge, experience and talent that has this country so far behind the rest of the world in this area. Having said that there is some great work starting to emerge and it can only improve with the next generation of marketing professionals coming out of college with knowledge and focus on new media.

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    • Really? A two hour event where a few people with services to sell get to market themselves is so hard to organise?

      But back to the survey. How large was the sample – enough for the results to be statistically significant?

      How were respondents chosen? Was it self selecting or did you seek people out? How great was the spread of business type/size? What methodology was used to ensure that the questions were phrased so as to elicit accurate responses?

      Is there any independent verification of methodology or polling/analysis of results?

      In summary, does it have any validity or usefulness at all, aside from its function in promoting some marketing event?

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  • In many ways Ireland itself is stuck in the 20th century. No surprise SME’s are the same. The company that did the research definitely blatantly know how to put word out there, right Journal?

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  • jimbo 12/04/12 #

    Where the results of this came from is mind boggling.

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    • Hi Jimbo,

      The survey is still open, so we have not created the final results or formulated a report. We will be closing the survey in the coming weeks and will then publish the results fully on our website and the websites of the other event organisers.

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  • It’s all part of being in a smart knowledge based economy which is run by expert knowledge based teachers!

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  • Break that down to B2C and B2B and it may be more interesting.

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  • I’m sure ISME will blame the public sector no matter what

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  • I am interested in the topic as the owner of a long established business with a bunch of websites, a couple of which have full eCommerce functionality. While I am also doing the odd opinion piece for thejournal.ie, I hope that I retain my impartiality. We are just now trying to address the whole issue of social media. I do admit that I simply do not really get it. What I do know is that every blog and web related newsletter I subscribe to, in an effort to learn more, screams at me, SMEs GET ON BOARD. I think the issue raised in the piece is more important than a bitch about who is in it for what benefit. I want to know does it work or more importantly can it work for my business.

    I don’t like the Black Arts, I am around long enough to remember the BS merchants that tried to rob us blind in the whole Y2K scare. However we do need to learn, we need knowledge that allows us to be able to buy valid value services to benefit our businesses. I do know one important thing, if the supply side has all the knowledge and the buyer knows naff all, the buyer gets screwed. When the buyer get shafted, he runs away.. Not a great recipe for a mutually beneficial business relationship. It puts quite an onus on the supply side to come to the table with clean hands, Honest Injun’ will do well.

    Peter Faulkner

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  • jimbo 12/04/12 #

    @ Franco De Bonis which backs up my comment even more its mind boggling….

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