Why MSMEs should not avoid online advertising

A recent study reveals that less than 6 percent of Indian MSMEs with access to personal computers advertise online. It is shocking why the sector is so much unaware of the benefits of using online advertising, which is, needless to say, cheaper, faster and capable of reaching more target audience as compared to traditional media.

I think one of the reasons for MSMEs' lack of awareness lies in the fact that most of them are run by first generation entrepreneurs who are -- there's not an iota of doubt -- hardworking and have an entrepreneurial spirit, but most of them are lagging behind in many areas, which need to be taken care of in this modern day business environment. Online advertising is certainly one of these areas.

There is nothing new to say that hasn't already been said about the benefits of online advertising but here I want to reiterate that Indian MSMEs could benefit a lot from that revolutionary medium - the Internet. Online advertising can help them to withstand the onslaught of competition by enhancing their market share both within and outside the country.

There is a common misconception among many small industry players that online advertising is suitable only for exporting firms to overcome the disadvantage of being small in size and reach the global market. For others, which generate revenue from the local market, this is not required. But I think that online advertising is essential for every modern day business to create greater acceptance, strengthen the brand, and gain market shares from competitors.

Apart from online advertising, Indian MSMEs need to go also for other Internet technology tools like electronic direct mail and digital newsletter. In addition, websites and online directory listings can help them a lot to pull prospective buyers with rational effort and cost. It hardly matters what sector you're in, whether you're small or big -- given the evolution of the Internet, every business should learn to effectively use the Internet and explore the benefits of online advertising.