Social media is taking the lead in marketing by small and medium size businesses across the African continent.
According to a new survey, most Micro, Small and Medium Enterprises have turned to online marketing with social platforms being the most used, followed by search engines and MSMEs own website.
The survey, jointly executed by GeoPoll, Africa 118, and the African Talent Company, unveiled that more than half of small and medium enterprises use social media for digital marketing and sales.
“Social media remains the standout marketing channel for MSMEs with 67 per cent saying they promote their business via social media channels,” it states.
The survey’s data collection occurred between mid-December 2022 and mid-January 2023, using Computer Assisted Telephone Interviewing (CATI) survey technology.
Data was collected from 440 MSMEs randomly selected from Ethiopia, Kenya, Nigeria, and South Africa.
The survey aimed at providing a comprehensive understanding of the key issues and trends affecting small businesses in Africa today.
The report findings have revealed that many MSMEs have identified the opportunity in taking their businesses online.
Among those surveyed, Kenya is the leading in the use of mobile apps at 64 percent, followed by South Africa at 37 percent. Ethiopia is third with 35 percent.
This report further reveals that Kenya primarily uses the mobile apps for finance.
In the report, over half of these MSMEs say they advertise online (53%).
“Forty-five percent sell products or services online and 24% use online channels to stock up,” it states.
When asked on the likelihood of these businesses hiring staff in the next three months, Kenya scored the largest segment among those surveyed, with 45 percent saying they are “not likely” to hire.
When asked about their sources of business finances, findings show that Kenya has the highest percentage to have received a bank loan at some point in running their business.
“Kenya has the highest percentage (27%) that say they have received a bank loan at some point in running their business,” the report reveals.
“Access to formal credit for small businesses remains a challenge, with only Kenya having a sizeable number of businesses that have accessed bank loans and organized savings cooperation – SACCOs."
According to the report, several global estimates indicate that digital advertising spends are expected to increase in 2023 compared to 2022, albeit with a slower growth rate.
“Digital media spending is expected to grow over the next year, with 59% of businesses saying they will spend more on digital marketing platforms. This is less than the 71% in last year’s study,” the report states.
