Top Online Marketing Challenges For Mum And Pop Shops In Australia

Top Challenges That Smaller Retailers Like Mum and Pop Shops in Australia Face

I learned one thing quickly working on WordStream’s Pacific Region team: Australia is full of small businesses that have a handful of employees. There are a lot of solopreneurs out there doing everything on their own. Despite being small, these businesses provide specialized expertise for their clients, sell unique products, and manage to generate a lot of revenue. But many Australian mum and pop shops and smaller brick and mortar retailers do face an uphill battle.

Running successful online digital marketing campaigns is a full-time job in itself, so there are challenges for advertisers who are handling sales, customer service, operations, finances, and other responsibilities – all on top of managing their accounts!

I’ve consulted with hundreds of advertisers in Australia, and I’ve seen a lot of common roadblocks that many mum and pop shops face.

Here are the five most common and tips for working around these challenges to increase your revenue and lower your customer acquisition costs from Google Ads and Facebook Ads.

Challenge #1: Like most Australian mum and pop shops, your background isn’t marketing

If learning Google Ads is learning Spanish, then learning Facebook Ads is learning French.

Technically, both ad platforms are in English, but there’s so much new terminology to learn that it really is like learning a new language.

And many business owners, especially the smaller Australian mum and pop shops, get overwhelmed reading reports they don’t really understand.

The good news is that there are heaps of free resources available to help you learn more about paid google search ads and paid social media advertising.

Try Googling terms such as negative keywords, long-tail keywords, Quality Score, lookalike audiences, A/B Testing, and ad extensions.

Try following industry blogs for tips and how-to articles. No one likes doing their homework, but this is homework that can make your campaigns more profitable!

Still scratching your head? You may want to consider hiring a search marketing agency for your business or digital marketing firm. Look, it took me one semester of carpentry school to realize that I do not belong on a roof. Everyone’s brains are wired differently! If you want to hire an agency, you should find one that will be an extension of your business.

Retail Ecommerce Sales Worldwide

I know a bunch of Pay Per Click / PPC agency managers in Australia that know their clients’ business inside out, and they help with other digital aspects of the business such as SEO, landing pages, conversion rate optimization, and more.

Find someone that’s invested in your success.

Challenge #2: You don’t have a way to measure success

Let me ask this: What are you after? Do you want customers to buy your products from your online store? Do you want a potential client to fill out your contact form? Do you want them to call you?

Identifying your goal is crucial, and then you need to set up ways to measure your process.

Conversion tracking and call tracking, in particular, are essential to your success, so you’ll want to set that up ASAP if you haven’t already. Let’s say your keyword “financial planner Melbourne” got you 10 calls, and you got five clients out of it.

Another keyword “superannuation,” on the other hand, got you zero calls. Without call tracking, you don’t know where your calls are coming from. With it, you can wisely spend your ad budget on the best performing keywords that are bringing you customers.

Don’t know exactly where to start? Getting conversion tracking set up isn’t as complicated as it might seem, especially with WordStream’s guide.

Also, something many Australian mum and pop shops may not know – Google also offers free call tracking, but it does recycle phone numbers. That means if your customer writes your number down and wants to call you in a week, the call goes to someone else.

I’ve heard CallRail and CallTrackingMetrics work great in Australia if you want to track your calls but don’t want the phone number to keep changing.

Challenge #3: You have a limited budget

If you’re spending $30 per day on your ads and your clicks are costing $5, it can be hard to compete in a crowded marketplace.

Many small businesses and Australian mum and pop shops have a strict budget: they are already spending a lot of money on traditional media advertising, their websites, and day-to-day operations of the business.

Sometimes you can’t increase your budget, you can stretch that budget out.

My colleague Justine Harrington says:

“If you rank #1 on organic search results for a keyword, you shouldn’t waste your limited budget on the same keyword. You could put that money towards different keywords you aren’t ranking for, which is better use of your budget.”

Justine has been really helpful in teaching me about the unique challenges for smaller companies in Australia, and it’s also great that our names are quite similar.

Additionally, it’s usually a good idea to set your brand name as a negative keyword when you have a limited budget, as you don’t need to pay for clicks from customers who know who you are already.

Let’s say you sell dresses. All of your competitors are going to be bidding on the keyword “dresses.” That keyword is going to be expensive.

If you sell long formal dresses, for instance, try bidding on the keyword “long formal dresses.” Longer keywords have less competition so are a great way to lower your cost per click. You can go into the Search Terms report in Google Ads to see what people are searching for when they click on your ads. You’ll want to add the longer phrases into your account as keywords if they are relevant to your business.

And don’t forget about Facebook Ads, either! Facebook has a way of finding people that are likely to be interested in your product or services, and many of my clients are getting lower customer acquisition costs compared to Google Ads.

Not to mention, if you are using conversion tracking, Facebook can learn how to target your ads better.

You might get 100 sales from a campaign, and then Facebook will learn more about who your ideal customer is and target ads to people that are similar to your customers.

Challenge #4: You’re getting bad advice

People ask me all the time, “Someone told me that I’m not getting sales because my budget is too low. Is that true?”

Certainly, things are easier when you have bigger budgets, but doesn’t usually fix poorly preforming campaigns. If I hand you a cup of water with a hole in the bottom of it, you wouldn’t pour more water in the cup. You’ve got to patch that hole first!

Every country has “experts” who really watched a few YouTube videos and don’t know what they are talking about. Whether it’s a friend trying to helpful or a consultant you are paying for, double check their advice with other resources.

Although there’s a ton of new PPC managers that do a great job, most actual experts will have testimonials from their clients to validate they know what they are doing.

Challenge #5: You just don’t enough time

You’re about to optimize your ads, and then a pallet of inventory arrives. Then you get a call from client that urgently needs help, and then you finish your day filing taxes.

Next thing you know your partner is ringing you wondering where you are, and you haven’t even had a chance to write that new ad! I quickly learned Aussie slang such as “it’s been full on,” “I’m snowed under,” and “I’m up in my armpits” talking to small business owners.

I learned quickly this isn’t what anyone meant by “snowed under.”

Many small businesses that I know that are having success with their campaigns are setting aside some time for marketing in the early morning or even on weekends.

Personally, I prefer watching American football or seeing live music on weekends, but sometimes I’m catching up on work. If you can set two or three hours per week aside for marketing, you’ll have enough time to do your research and manage your ads more effectively.

Not everyone has those two or three hours to spare, so might I suggest looking into online marketing platforms that can help you manage your campaigns in less time.

Remember, regardless of if you are big retailer, or one of the many, smaller, Australian mum and pop shops, you know your business best!

No matter what you do, it’s important that you are applying your business acumen to your online marketing campaigns. If you are managing it on your own, that’s great. No one understands your industry, your clients, and your goals as well as you do.

Computer nerds like me know a lot about marketing, but we learn so much about different industries talking to business owners, marketing managers, and the all-star employees out there that wear many hats for their company.

Even more online marketing challenges for small mom and pop shops

Mum-and-pop shops in Australia face several marketing challenges that can impact their growth and sustainability. One significant issue is the limited resources available to small businesses. Operating with constrained budgets and staff makes it difficult to invest in comprehensive marketing strategies, hindering their ability to compete with larger enterprises that have more substantial marketing budgets.

Another challenge is customer acquisition and retention. Finding new customers and retaining existing ones are significant concerns. Without effective marketing, small businesses may struggle to expand their customer base and maintain loyalty among current clients.

Digital marketing presents its own set of challenges. The rapid evolution of digital marketing platforms and tools can be overwhelming. Small businesses may lack the expertise to navigate these changes effectively, leading to missed opportunities in online advertising and social media engagement.

Competition from larger businesses is also a significant concern. Competing with larger businesses that have more resources and established brand recognition can be daunting. Small businesses need to find unique selling propositions and niche markets to differentiate themselves.

Regulatory compliance adds another layer of complexity. Adhering to marketing regulations and standards can be complex, especially for small businesses without dedicated legal teams. Non-compliance can result in penalties and damage to reputation.

Addressing these challenges requires strategic planning, resource allocation, and staying informed about marketing trends and regulations. By leveraging local networks, embracing digital tools, and focusing on customer relationships, small businesses can enhance their marketing effectiveness and competitiveness.

Breaking down some of the challenges:

Small “mom and pop” shops in Australia face several online marketing challenges when trying to establish and grow their digital presence. While the internet provides vast opportunities for small businesses, competing with larger brands and mastering digital marketing can be tough. Here are some of the biggest challenges they face:

Limited Budget for Digital Marketing

Many small businesses operate on tight budgets, making it difficult to invest in SEO, paid pay-per-click ads, or social media marketing. Unlike big brands that can afford aggressive marketing campaigns, mom-and-pop shops need to prioritise cost-effective strategies like organic SEO, local listings, and social media engagement.

Lack of Digital Marketing Knowledge

Many small business owners are experts in their trade but may not have the experience or time to master digital marketing. Understanding what SEO is, PPC, email marketing, and social media advertising requires a learning curve, and without proper guidance, businesses may struggle to implement effective strategies.

Competing with Larger Businesses

Small businesses often struggle to compete with big chains and corporations that have stronger online visibility, bigger budgets, and well-established branding. Large companies dominate search engine rankings and social media ads, making it difficult for smaller shops to stand out.

Keeping Up with SEO Changes

Search engine optimisation (SEO) is crucial for visibility, but search engine algorithms constantly evolve. Many mom-and-pop businesses struggle to keep up with changes in Google’s ranking factors, local SEO updates, and best practices that influence their website’s traffic and rankings.

Building and Managing an Engaging Online Presence

Simply having a website isn’t enough. Small businesses need to actively engage with their audience through content marketing, social media, and online reviews.

Many struggle with:

• Posting regularly on social media platforms.
• Responding to customer inquiries and reviews.
• Creating fresh and valuable content that attracts and retains customers.

Generating Local Traffic and Leads

Local SEO is essential for small shops, but ranking well in local searches requires optimising Google My Business, earning local backlinks, and encouraging customer reviews. Many businesses struggle to implement these strategies effectively, leading to missed opportunities in their local community.

Managing Paid Advertising Effectively

Google Ads and Facebook Ads can drive targeted traffic, but small businesses often struggle with:

• Setting the right budget and targeting the right audience.
• Understanding bidding strategies and ad optimisation.
• Avoiding wasted spend on ineffective campaigns.

Adapting to Changing Consumer Behavior

Customer expectations have shifted, with more people preferring online shopping, local searches, and mobile-friendly experiences.

Many mom-and-pop shops struggle to adapt by:

• Creating an e-commerce website or online booking system.
• Offering delivery or click-and-collect options.
• Ensuring their website is mobile-optimised and easy to navigate.

Encouraging Customer Reviews and Social Proof

Online reviews influence purchasing decisions, but many small businesses struggle to get customers to leave positive feedback on Google, Facebook, or other platforms. Without strong social proof, it can be harder to build trust and attract new customers.

How Small Mom and Pop Businesses Can Survive in the Digital Age

In today’s digital age, small “mom and pop” businesses face unique challenges, but they also have a wealth of opportunities to thrive by embracing technology. While larger businesses may have more resources, small businesses can still compete effectively by leveraging their personal touch, local knowledge, and agility. The key to surviving and succeeding in the current landscape is staying connected with customers and adopting digital strategies that are both cost-effective and efficient.

One of the most powerful tools small businesses can use is a strong online presence. Building a website is no longer optional—it’s essential. A professional website helps to establish credibility, serves as a digital storefront, and provides an opportunity to showcase your products or services. It’s also important to integrate e-commerce functionality into your site, allowing customers to make purchases or inquiries online, even if your business operates primarily in a brick-and-mortar space.

Alongside a website, social media marketing is a must. Social media adverting Platforms like Instagram, Facebook and even TikTok offer small businesses an opportunity to reach potential customers, engage with their community, and build brand loyalty without breaking the bank. Social media also allows for authentic, real-time interactions, which is one of the hallmarks of a successful mom-and-pop business. Posting regular updates, responding to comments, and running sales promotions can help maintain a close connection with both existing and new customers.

Another critical digital tool for small businesses is optimising the website for local near me online searches. Optimising your website and online content for local search terms can increase your visibility to customers who are actively searching for services or products in your area. This can be as simple as registering your business on Google My Business, ensuring your contact details are up-to-date, and encouraging happy customers to leave reviews. Local SEO ensures that when someone nearby searches for a business like yours, they find you first.

Small businesses can also benefit from email marketing. Collecting email addresses through your website or in-store can provide a direct line of communication with your customers. Offering exclusive promotions, product updates, and newsletters can keep your audience engaged and drive repeat business. This type of personalised communication can set your business apart from larger competitors who may not offer the same level of attention.

Finally, adaptability is crucial. The digital age is ever-changing, and small businesses must remain flexible to keep up with the trends. Whether it’s experimenting with new digital advertising strategies, integrating a new software tool, or responding quickly to customer feedback, staying agile allows mom-and-pop businesses to find innovative solutions to challenges that arise. Embracing the digital transformation doesn’t mean you need to abandon your personal, community-focused approach—rather, it’s about using digital tools to enhance the experience you already provide.

By leveraging a blend of digital marketing, local SEO, e-commerce SEO, and social media, small businesses can not only survive but thrive in the digital age, standing out in an increasingly competitive market while still maintaining the personal, local touch that makes them special.

How Small Businesses Can Overcome These Challenges

• Leverage Free and Affordable Marketing Tools: Use free tools like Google My Business, Google Analytics, and social media to improve online presence without a huge budget.
• Focus on Local SEO: Optimising for local searches can help small businesses compete in their community.
• Create Quality Content: Blogging, FAQs pages, and social media updates can help attract and engage customers organically.
• Encourage Customer Reviews: Positive reviews boost credibility and local search rankings.
• Outsource When Needed: Hiring an SEO or marketing consultant can save time and provide expert guidance.

If small businesses take on these challenges strategically, small mom-and-pop shops can successfully grow their digital presence and attract more customers without breaking the bank.

If you are going to outsource, it should be with someone who asks you a lot of questions and knows what you’re after.

Communication is key, and it’s best to review the account with your SEO agency and PPC manager at least once a month.

About the Author

Danny Andrawes

Danny Andrawes, Chief Executive Officer of OMG, plays a pivotal role in shaping the agency's strategic direction. With nearly 20 years of experience, he progressed from Content Specialist and Digital SEO Specialist to CEO, leveraging his impressive background in SEO/SEM delivery, client acquisition and retention, and change management to enhance OMG's service offerings. Danny’s leadership emphasises client partnerships and the integration of cutting-edge tools to optimise digital campaigns, positioning OMG as a trusted partner for businesses worldwide.