Going Digital | The Local Way
Knowing what a problem is helps you create a solution. KYML is a B2B company helping small and medium businesses reduce their annual costs for digital marketing while increasing their reach to consumers. Building a community of businesses and shoppers looking to make sustainable and value-oriented purchases. A single place to engage on-line and off-line with the local Mainstreet, where ever you are or may be traveling to.
Now some more facts. While going digital is the way, the cost of going digital can be expensive or unaffordable for small and medium businesses costing anywhere between $30,000 to $100,000 annually and often based on sales and size (BDC, n.d). The cost of a digital presence includes functions like website development, hosting, management, commission costs to digital marketplaces, social media marketing, digital ads or pay per click ads and annual subscriptions to services that support the online link between businesses and consumer markets. According to Santo (2019) the retail industry alone has the highest percentage of total spending on advertising costs [21% of total expenses] and globally, consumer brands spend on average 10.5% of their budgets on just digital advertisements.
The demand on small and medium businesses to increase their online presence has grown exponentially in recent years and most significantly in 2020. Concurrently, the cost and resources required to compete with leading companies is a reality. As a result, businesses have turned to a variety of marketing options including costly social media ads, traditional marketing platforms, pay per click ads, website developers, hosts and domains. To remain competitive, businesses are required to pivot and shift with consumer and market demand and this remains essential to business longevity.
In 2020, digitalization of consumer interactions increased at a rate of 65% in North America and 58% globally, while the number of products and or services offered partially or fully digital went up to 60% for North America and 55% globally (McKinsey&Company, 2021). In a report conducted in September 2020, McKinsey & Company identified that the majority of consumers expect to continue shopping online for items in all categories from groceries, clothing, household, entertainment and fitness (McKinsey&Company, 2020).
Yup, just a couple of stats. We also left out the specific stats regarding the trends to sustainable brand shopping… we did this on purpose and don’t worry, we will be exploring it in another blog. Possibly all its own as it’s that important.
As always, thanks so much for reading our blog! So for now, Cheers! And here's to many more.
BDC (n.d). What is the average marketing budget for a small business: How much you should spend depends onyour revenues, market and who you need to reach. https://www.bdc.ca/en/articles-tools/marketing-sales-export/marketing/what-average-marketing-budget-for-small-business
McKinsey&Company (2021). Exhibit 7. Accessed on July 18, 2021 from https://www.mckinsey.com/business-functions/strategy-and-corporate-finance/our-insights/how-covid-19-has-pushed-companies-over-the-technology-tipping-point-and-transformed-business-forever#
McKinsey&Company (Sept 2020). Authors Charm, T., Grimmelt, A., Kim, H., Robinson, K., Lu, N., Mayanak., Ortega, M., Staack, Y., & Yamakawa., N. Consumer sentiment and behaviour continue to reflect the uncertainty of the Covid-19 crisis. Accessed on July 18, 2021 from https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/a-global-view-of-how-consumer-behavior-is-changing-amid-covid-19
Santo, A., (Feb 20, 2019). The ultimate list of marketing spend statistics for 2019 (infographic). Published by Brafton: Fuel your brand. Accessed on July 18, 2021. https://www.brafton.com/blog/content-marketing/the-ultimate-list-of-marketing-spend-statistics-for-2019-infographic/#:~:text=Per%20The%20CMO%20survey%2C%20companies,of%20their%20budgets%20to%20marketing.&text=Marketing%20consulting%20services%3A%206.3%20percent,Marketing%20training%3A%203.7%20percent.