Impact of Digital Marketing on SMES Performance in Oyo State

Resumo

The performance of small and medium enterprises in Oyo State, Nigeria, is examined in this study in relation to digital marketing channels of social media marketing and search engine optimization. The study used population of 7,987 registered SMEs in Oyo State with SMEDAN as provided by the National Bureau of Statistics (2020). Krejcie and Morgan formula was used to determine the sample size of 366 SMEs in Oyo State, out of which 358copies of questionnaire were returned and used. In achieving the set objectives and test the relevant hypotheses, the inferential statistics of Ordinary Least Square (OLS) and Logit Regression were adopted for the study. A survey research design was used to collect data through the distribution of questionnaire and purposive and stratified sampling techniques were used to select SMEs using digital marketing in Oyo State, Nigeria. The significant F-statistics value of 247.36 showed that the test 0.0000 F-statistics p-value was below the critical value of 5%. The study concluded that digital marketing enhanced the performance of SMEs. The finding showed social media marketing and search engine optimization had favourable impact on the performance of SMEs and search engine optimization had a favourable and substantial impact on the SMEs' performance. The study recommended the need for the integration of social media marketing as part of the marketing channels to increase customer base and profitability. Also, businesses are encouraged to engaged experienced agents to promote their goods and services online in order to increase their visibility.