How to do digital marketing for your small business

Published Monday 30 March 2026

Table of contents

• What is digital marketing?
• Benefits of digital marketing for small businesses
• Understanding your target audience
• Types of digital marketing
• Getting started with digital marketing
• How to do digital marketing for free
• Paid digital marketing for small business
• How much does digital marketing cost?
• Measure your digital marketing results
• Do it yourself (DIY) or use a pro?
• Start your digital marketing journey with confidence
• FAQs on digital marketing for small businesses

Key takeaways

• Define your target audience clearly by identifying their demographics, problems, online behaviour, and search patterns before choosing any digital marketing channels or creating content.
• Start with free digital marketing tactics like SEO and content marketing, which can drive significant results without advertising spend, before investing in paid campaigns.
• Test multiple digital marketing approaches with small budgets initially, track key metrics like conversion rates and cost per acquisition, then scale up investment in the tactics that deliver the best return on investment.
• Focus on one or two digital marketing channels where your target audience spends time rather than trying to be everywhere at once, allowing you to master those platforms and create more effective campaigns.

What is digital marketing?

Digital marketing is the use of online channels to promote your products or services and generate sales. It includes tactics like search engine optimisation, social media, email campaigns, and paid advertising.

For small businesses, digital marketing offers a cost-effective way to reach customers, with digital platforms charging $3–$10 per 1,000 impressions compared to over $22 for traditional media.

"Some startups will straightaway blow their marketing budget because the return on investment is so good," says online business consultant Marc McKeown of FortBrave. "They make it all back, plus some."

Fellow consultant Shaheman Farid of Boobooks Accountants offers a different perspective. "I've seen businesses spend thousands on campaigns without getting a single conversion."

Test different approaches in a controlled way, track your results, and invest more in what works.

Benefits of digital marketing for small businesses

Digital marketing offers advantages that traditional advertising can't match, especially for businesses with limited budgets. It helps you connect with the right customers and grow your business in a cost-effective way.

Key benefits include:

• Lower costs: Reach thousands of potential customers for a fraction of what print, radio, or TV advertising would cost
• Precise targeting: Show your ads only to people likely to buy, based on their location, interests, and online behaviour
• Measurable results: Track exactly how many people see your ads, click through, and make purchases
• Flexibility: Start small, test what works, and adjust your approach in real time
• Equal opportunity: Compete with larger businesses by reaching the same audiences online

For small businesses, digital marketing means you can grow your customer base without the large upfront investment traditional advertising requires.

Understanding your target audience

Before choosing digital marketing tactics, you need to know exactly who you're trying to reach. Your target audience is the specific group of people most likely to buy your products or services.

Define your audience by asking:

• Who are they? Consider age, location, income level, and occupation
• What problems do they have? Identify the challenges your product or service solves
• Where do they spend time online? Determine which platforms and websites they use
• How do they search? Note the words and phrases they use when looking for solutions

Once you understand your audience, you can choose the right channels, craft messages that resonate, and avoid wasting money on people unlikely to buy.

Types of digital marketing

Digital marketing breaks down into two main categories: free (organic) and paid. Here are the core channels small businesses use:

• Organic digital marketing: includes SEO, content marketing, social media posts, and email newsletters
• Paid digital marketing: includes pay-per-click ads, social media advertising, display ads, and retargeting

Each channel works differently, and the right mix depends on your budget, audience, and goals.

Getting started with digital marketing

Getting started with digital marketing is simpler when you focus on a few high-impact actions first.

Follow these steps to get started:

1. Set up your online presence: Create or update your website and claim your Google Business Profile
2. Choose one or two channels: Pick the platforms where your target audience spends time
3. Create valuable content: Share helpful information that addresses your customers' questions and problems
4. Set a small test budget: If using paid ads, start with a modest daily spend to learn what works
5. Track your results: Monitor which tactics bring visitors and sales, then adjust accordingly

Start simple, measure your results, and expand your efforts as you learn what works for your business.

How to do digital marketing for free

SEO and content marketing are two of the most effective free digital marketing tactics, as brands that blog tend to have 434% more indexed pages, significantly boosting their visibility on search engines. Ben Charlton, owner of Air8 Digital marketing agency and an online shop, uses both to attract customers without spending on ads. "I'm focused on the free opportunities and haven't had to spend anything yet to get sales," he says.

SEO marketing

Search engine optimisation (SEO) helps your website appear higher in search results, which is crucial given the top result commands an average click-through rate (CTR) of 27.6%, while the tenth result gets only 2.6%. The goal is to make sure search engines understand what you sell and where you're located.

Here's how to get started with SEO:

1. Claim your Google Business Profile: This tells search engines where you're based, so you appear in local searches
2. Connect to product carousels: Link your e-commerce site to Google and Facebook so your products appear at the top of relevant searches
3. Optimise your website content: Use keywords your customers search for in your page titles, descriptions, and headings

SEO drives free traffic to your site. If you want faster results, an SEO consultant can help you refine your strategy.

Shareable content

Shareable content is helpful advice, stories, or resources that your audience wants to pass along to others. When people share your content, you get free exposure to potential customers.

Olivia Park of Olivia Park Coaching built her business this way:

I don't spend money on advertising. I create content aimed at helping my target customer and share it on Instagram or via podcasts. It attracts enough new clients to keep me busy.

Paid digital marketing for small business

Paid digital marketing lets you reach customers faster by paying for visibility. The three main approaches are:

• Pay-per-click (PPC): Pay to appear at the top of search results when people search for relevant keywords
• Social advertising: Pay to show ads or sponsored content in your target audience's social media feeds
• Display advertising: Pay to show banner ads on websites your potential customers visit

Pay-per-click (PPC)

Pay-per-click (PPC) advertising puts your business at the top of search results for specific keywords. You only pay when someone clicks on your ad, which makes it easier to control costs.

PPC platforms also let you target precisely. "I have a client who pays to appear when people search for a builder, but only if that person is within 25km," says Ben Charlton. "My client doesn't want jobs that require a lot of travel."

Paid social ads

Paid social advertising places your ads or sponsored content directly in your target audience's social media feeds. Platforms like Facebook, Instagram, and LinkedIn let you define exactly who sees your ads based on demographics, interests, location, and behaviour. This targeting helps you reach your ideal customer without wasting budget, especially on platforms like LinkedIn where four out of five members drive business decisions.

Display ads and retargeting

Display ads are banner advertisements that appear on websites across the internet. For small businesses, display ads work best as part of a retargeting campaign, which shows ads to people who've already visited your site, as customers are 70% more likely to make a purchase from a retargeting ad.

Marc McKeown explains the power of retargeting:

Your ads can follow them around the internet for a little while. If they abandoned a cart, you can retarget them with an ad offering a discount or free delivery. If they already bought something, you could retarget them with an ad for a complementary product.

Digital marketing success comes from testing, measuring, and refining. Here's how to approach paid campaigns:

1. Test broadly at first: "Try a lot of stuff in those first three months," says Marc McKeown. "Tactics that you may have dismissed might turn out to work very well."
2. Track your results: Most advertising platforms show you key metrics like impressions, click-through rate, and conversions
3. Invest more in what works: Identify which campaigns give you the best return on investment and increase your spend there
4. Keep monitoring: What works today may not work tomorrow, so review your results regularly

How much does digital marketing cost?

Digital marketing costs vary widely, from nothing for organic tactics to thousands per month for paid campaigns. You can start small and scale up as you learn what works.

Here's what small businesses typically spend:

• Testing phase: As little as R4–R8 per day to test ads on multiple platforms
• Startup budget allocation: Marc McKeown recommends putting 40% of your startup budget toward marketing
• Ongoing spend: Reduce your marketing percentage once you've identified what works

"You don't have to break the bank to test ideas," says Ben Charlton. Start cautiously, track your results, and increase spend on campaigns that deliver returns.

Is there a way to advertise your small business for free or for a low cost? Absolutely. Many small businesses build their customer base entirely through free tactics before investing in paid advertising.

Measure your digital marketing results

Tracking your results helps you understand what's working and where to invest more. Measurement helps you make informed decisions.

Key metrics to track:

• Website traffic: how many people visit your site and where they come from
• Conversion rate: the percentage of visitors who take a desired action, like making a purchase or signing up
• Cost per acquisition: how much you spend to gain each new customer
• Return on investment: the revenue generated compared to your marketing spend
• Engagement: likes, shares, comments, and click-through rates on your content

Tools to help you measure:

• Google Analytics: free tool that tracks website traffic and user behaviour
• Platform analytics: built-in reporting from Facebook, Instagram, LinkedIn, and Google Ads
• Accounting software: track marketing expenses and compare them to revenue using tools like Xero

Review your metrics regularly, at least monthly, to identify trends and adjust your strategy.

Do it yourself (DIY) or use a pro?

Should you handle digital marketing yourself or hire help? The answer depends on your budget, time, and expertise.

Do it yourself if:

• you have more time than money
• you want to learn how digital marketing works
• you're comfortable using online platforms

Consider hiring help if:

• time is your biggest constraint
• you're spending upwards of R1,000 per month on ads
• you want faster results

Options for getting help:

• Freelancers: "If someone charges you R200 and saves two days of your time, then spend the money," says Ben Charlton. Try LinkedIn or marketplaces like Fiverr
• Overseas experts: Shaheman Farid recommends searching for "small digital campaign" to find affordable talent. "We've discovered some great talent at a quarter the price in those markets"
• Agencies: Best suited for businesses with larger budgets who need ongoing support

McKeown says there are plenty of good resources and tools if you want to do your own digital marketing. "Lots of platforms help you create and launch ad campaigns, plus they'll report results afterwards. But time may become a limiting factor when you're also trying to run the business."

Start your digital marketing journey with confidence

Digital marketing success comes down to three things: knowing your audience, testing different tactics, and tracking your results.

Key actions to take:

• Define your target customer: know exactly who you want to reach and what language they use
• Start with free tactics: SEO and content marketing can drive results without ad spend
• Test paid campaigns carefully: start small, track results, and scale what works
• Measure everything: check your campaign stats regularly and adjust your approach

As you grow your digital marketing efforts, tracking your spend and measuring return on investment becomes essential. Xero helps you manage your marketing budget alongside your other business finances, so you can see exactly what's working. Get one month free and start your digital marketing journey with confidence.

FAQs on digital marketing for small businesses

Here are answers to common questions about digital marketing for small businesses.

How do you begin digital marketing?

Start by setting up your online presence with a website and Google Business Profile. Then choose one or two channels where your target audience spends time, create helpful content, and track your results.

Can you start digital marketing with no money?

Yes. SEO, content marketing, and organic social media posts cost nothing but your time. Many small businesses build their customer base entirely through free tactics before investing in paid advertising.

Can you teach yourself digital marketing?

Yes. Free resources like YouTube tutorials, Google's Digital Garage, and platform help centres can teach you the basics. Start with one tactic, learn by doing, and expand your skills over time.

What are the four types of digital marketing?

The four main types are content marketing, social media marketing, search engine marketing (including SEO and PPC), and email marketing. Together, they help you attract audiences, generate leads, and drive sales.

How long does it take to see results from digital marketing?

Paid advertising can generate traffic within days. Organic tactics like SEO and content marketing typically take three to six months to show significant results. Consistency and ongoing optimisation improve outcomes over time.