Effects of Online Marketing Strategies on the Performance of Small and Medium Enterprises in Calabar Metropolis, Nigeria

Abstract

The increasing adoption of digital technologies has transformed the marketing landscape, creating opportunities for small and medium-sized enterprises (SMEs) to improve their competitiveness and performance. Despite the growing relevance of online marketing, many SMEs in Calabar Metropolis continue to face challenges linked to limited digital skills, inadequate technological infrastructure, and uncertainty regarding the effectiveness of emerging digital marketing tools. This study examined the effect of online marketing on the performance of SMEs in Calabar Metropolis, Cross River State, Nigeria, focusing on social media marketing, online advertising, content creation, internet payment systems, and online ordering and delivery. A cross-sectional survey design was adopted, targeting registered and unregistered SMEs in Calabar Municipality and Calabar South Local Government Areas. Using the Topman formula for an unknown population, a sample size of 169 respondents was determined, and data were collected through a structured questionnaire with reliability coefficients ranging from 0.703 to 0.831. Descriptive statistics were analysed using SPSS version 27, while Partial Least Squares Structural Equation Modelling (PLS-SEM) with SmartPLS and 5,000 bootstrap samples tested the hypotheses. The findings showed that all dimensions of online marketing had positive and significant effects on SME performance: social media marketing (β = 0.297), online advertising, the strongest predictor (β = 0.324), content creation (β = 0.265), internet payment systems (β = 0.299), and online ordering and delivery (β = 0.309), all significant at p < 0.001. The model fit indices confirmed adequacy (SRMR = 0.054; NFI = 0.822). The study concludes that online marketing is a critical driver of SME performance in Calabar Metropolis and recommends that SME operators intensify the adoption of social media marketing, online advertising, content creation, internet payment systems, and online ordering and delivery to enhance customer patronage, market coverage, customer retention, and sales performance. The study contributes to the growing literature on digital marketing by providing empirical evidence on the roles of content creation, internet payment systems, and online ordering and delivery in enhancing SME performance in Nigeria.