The primary function of any business can be boiled down to revenue growth. eCommerce businesses are no different.
Companies of all shapes and sizes are always looking for the best ways to grow. As a recent study by DesignRush revealed, social media marketing investment is the top growth strategy for the majority of eCommerce businesses.
In our survey, over 150 eCommerce businesses were asked questions about the marketing channels they use, including SEO, paid search ads (PPC), offline marketing, and social media.
After providing information about their business, respondents were asked to weigh in on which marketing channel gave them the highest ROI in 2018, and where they plan on spending their marketing dollars in the future.
Businesses were also asked about the use of marketing agencies and the difficulty they experience with the various channels.
Small eCommerce businesses with less than 10 employees were the primary participants in this survey. However, to gain some greater insights into the market as a whole, we also received feedback from larger companies, some with tens of thousands of workers.
Nearly half of our respondents take in less than $500,000 a year in sales, with a small percentage making upwards of $40 million.
Respondents utilized a variety of eCommerce platforms in 2018, primarily their own websites, Amazon, and mobile apps.
This study examines the ways that eCommerce businesses plan on growing, with a focus on marketing investments.
While every eCommerce company needs to utilize a variety of marketing tools to cultivate growth, social media appears to be the clear leader when it comes to ROI.
Many businesses call upon the services of a social media agency to give a boost to their social footprint, which, in turn, can fuel conversions.
Let’s dive into the data to find out how eCommerce businesses are trying to cultivate growth in the coming years.
Marketing Investments Are on the Rise
Our survey found that while many companies plan on keeping their marketing budget the same as the previous year, a majority of them are planning on increasing their marketing investments:
Where These Marketing Dollars Are Going
Survey respondents were asked which marketing channel was their primary investment in 2018. Social media claimed the top spot by a large margin:
Business growth cultivation through social media marketing investments is slated to continue into the future, as our survey indicates:
Utilizing Marketing Agencies for Growth
The utilization of marketing agencies is one of the favorite ways that eCommerce businesses cultivate growth. Our findings point out the popularity of marketing agencies in their respective channels:
Our survey also indicated that an even greater number of businesses plan on using marketing agencies in 2019:
It All Comes Down to ROI
When you look into the responses relating to ROI, the reason for increased social media spending and agency utilization is clear:
Summary of Findings
This study looked into the ways that small eCommerce businesses plan to cultivate growth via their marketing investments.
We found that social media marketing is the primary channel for businesses to invest in, whether it’s directly with promoted posts or through a marketing agency.
To utilize social media platforms such as Facebook, Instagram, and Twitter effectively, near-constant engagement is required. Many businesses do not have the time or resources for this, which is why they work with a social media agency.
Small business growth trends in 2019 are a continuance of those going back to 2017, when nearly half of all small and medium-sized businesses planned on growing by 25% annually, according to BigCommerce.
Social media is clearly the springboard for most eCommerce companies, who depend on social sharing to build brand visibility and make conversions.
For eCommerce businesses looking to maximize their growth potential, our study has shown that there is no better avenue for doing so than with social media marketing.
Partnering with an agency is one of the best way to invest in a marketing channel, and social media agencies exist to assist companies in perfecting their digital footprint.
DesignRush provides an unparalleled agency listing service, where businesses can compare agencies by expertise, reviews, and budget. The end result is an increased revenue growth potential for businesses of all sizes.
Check out our list of top digital agencies to start making the most of your eCommerce company today!