Digital marketing has become a necessity for many of Australia’s 2.6 million small businesses,
exacerbated by the unpredictability of the recent global pandemic (Australian Bureau of Statistics,
2022). The increased demand for digital marketing services by Australian small business owners
has also resulted in an increase in enquiries and complaints received by the Australian Small
Business and Family Enterprise Ombudsman (ASBFEO) by small business owners against suppliers
of digital marketing services. Since 2020, the ASBFEO has reviewed 96 cases, approximately four
cases per month, relating to digital marketing services. This highlights an emerging issue in the
Business-to-Business (B2B) relationship between small business owners and the providers of
digital marketing services, which is the focus of the current report.
While previous research has focused on B2B service relationships in the Australian advertising
industry, limited to no research to date has explored the relationship between small business
owners and digital marketing service providers. This study undertaken by researchers at the
University of the Sunshine Coast in collaboration with the office of the Australian Small Business
and Family Enterprise Ombudsman, is among the first both nationally and globally to investigate
the relationship challenges between small businesses and digital marketing service providers.
Specifically, this research provides novel findings and insights from a mixed-methods research
project involving a series of semi-structured interviews (20) with Australian small business
owners and digital marketing service providers and an online survey of 420 Australian small
business owners.
Results in this study have identified four key stages of the B2B relationship between small business
owners and the providers of digital marketing services:
• Pre-Relationship: Attitudes About and Experience with Digital Marketing
• Beginning the Relationship.
• Mid-Relationship
• Exiting the Relationship (relationship termination).
The findings presented in this report are categorised by each B2B relationship stage. In addition,
fact sheets for small business owners and digital marketing service providers with advice on how
to navigate each stage and to overcome or mitigate potential relationship challenges with a
digital marketing service provider.
Overall, the research suggests challenges arise in the B2B relationship when parties:
i. Are “not a good fit” (in terms of budget, nature of appoin tment, and level of input
expected),
ii. Do not understand the needs of the small business, and the services provided, and/or
iii. When expectations surrounding return-on-investment (ROI) are not managed
transparently.