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SMEs from Insurance, IT and Travel spend 45% media budget on internet: Google India

According to a survey conducted by Google India, among 785 small and medium enterprises (SMEs) surveyed in the country, those involved in sectors like insurance, IT, travel and tourism spend around 45 per cent of their overall media budget on online marketing. Annual online spends are also high among SMEs in the media and entertainment, gems and jewellery and apparel space. The survey also revealed that display advertising and email marketing are the most popular forms of internet advertising and 30 per cent of SMEs use search engine advertising to market their product and services.

According to a survey conducted by Google India, among 785 small and medium enterprises (SMEs) surveyed in the country, those involved in sectors like insurance, IT, travel and tourism spend around 45 per cent of their overall media budget on online marketing. Annual online spends are also high among SMEs in the media and entertainment, gems and jewellery and apparel space. The survey also revealed that display advertising and email marketing are the most popular forms of internet advertising and 30 per cent of SMEs use search engine advertising to market their product and services.

The survey further stated that 58 per cent of SMEs use the web to generate business leads, though, traditional media like newspapers and outdoor hoardings still accounts for most of SMEs’ advertising spend. Amongst the SMEs that have an online presence, 56 per cent of them feel the internet is a cost-effective medium as compared to traditional advertising mediums like print and television and 79 per cent of SMEs believe that internet advertising can provide a greater reach.

Out of 785 SMEs surveyed, 71 per cent use the internet to search for vendors and suppliers and about 40 per cent of them use the internet to create online listings and advertise online. However, accessing email is the main purpose for using the internet for all the SMEs.

“While the absolute number of SMEs with an online presence is very low compared to the actual number of businesses in India, we are pleasantly surprised to see increasing understanding amongst Indian SMEs to use the web for business growth. In the last two years, we have seen a significant increase in the number of businesses that have started to advertise online. But with over 35 million SMEs in the country, we have a long way to go,” Sridhar Seshadri, head, online sales, Google India, said.

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