Digital Marketing and the Financial Performance of Small and Medium Enterprises (SMEs) in Etsako West Local Government Area, Edo State

• Bright E. Edoh

• Williams O. Odiwo

The study examined the relationship between digital marketing and the financial performance of Small and Medium Enterprises (SMEs) in Etsako West Local Government Area, Edo State. Despite the increasing availability and potential of digital marketing tools, SMEs in Nigeria, particularly in non-metropolitan areas, have not consistently translated digital marketing adoption into improved financial performance outcomes such as return on investment, gross profit margin, and net profit margin. Specifically, the study examined the relationship between affiliate marketing, social media marketing, content marketing and Return on Investment (ROI), Gross Profit Margin, and Net Profit Margin. A survey design was adopted, utilising a structured questionnaire to collect a sample of 200 SME owners and managers from a population of 250 SMEs using the Krejcie and Morgan sample size determination. The data were analysed using both descriptive statistics and inferential statistics, including simple and multiple linear regression, analysed via SPSS version 21. Findings from the tests revealed that affiliate marketing, social media marketing, and content marketing all exert a positive and statistically significant influence on financial performance indicators. A multiple regression analysis was conducted as a robustness check, which showed that the integrated digital marketing dimensions account for 97.4% of the variance in financial performance. The study concludes that digital marketing is a critical determinant of financial sustainability, with affiliate marketing emerging as the most dominant predictor in a combined strategic framework. The SME operators should prioritise performance-based affiliate partnerships and adopt an integrated content-to-commerce strategy to optimise profitability.

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