V2I5P52

THE EFFECT OF ONLINE MARKETING ON SALES PERFORMANCE OF SMES IN NIGERIA: A GAME CHANGER IN THE DIGITAL ERA

Femi Seun Benjamin^1*

Abstract

In the digital era, online marketing has emerged as a transformative force, particularly for Small and Medium-sized Enterprises (SMEs) in developing economies like Nigeria. This study investigates the impact of online marketing strategies on the sales performance of SMEs in Ibadan, Oyo State, highlighting the potential of digital platforms to drive growth and competitiveness. Despite the increasing relevance of digital tools, many Nigerian SMEs have been slow to adopt them due to barriers such as limited technical knowledge, infrastructure challenges, and perceived inefficacy. Using a descriptive survey research design, data were collected from 278 SMEs and analyzed through multiple linear regression. The findings reveal that online marketing—especially social media marketing and search engine marketing—has a significant and positive effect on SME sales performance, with an R² value of 0.562 indicating substantial predictive power. The study affirms the role of online marketing as a cost-effective, scalable solution for overcoming traditional market limitations. It concludes by recommending that SMEs invest in digital literacy, leverage targeted online platforms, and integrate digital strategies into their core business operations to maximize market share and long-term sustainability.

Keywords:

Online Marketing; Sales Performance; SMEs In Nigeria; Digital Era