Social Media Advertising and Marketing Performance of Small and Medium Enterprises in Tema Metropolis, Ghana

Abstract

The study was carried out to assess the effect of social media advertising on the marketing performance of small and medium sized enterprises [SMEs]. The study was conducted in the Tema metropolis, in the Greater Region of Ghana. Explanatory research designed backed by quantitative research approach was applied in the context of the study. The target population included 15000 registered SMEs that were at the time of the study were operating in the metropolis. Stratified sampling technique was used to select the 248 SMEs. Owners and managers of SMEs served as proxies in the context of the primary data collection. Structured questionnaires were used for the primary data collection. Cronbach’s Alpha and principal component techniques were used to test the reliability of the primary data and the validity respectively. The regression analysis showed that changes in social media advertising accounted for a statistically significant positive and substantial variance in marketing performance of SMEs in Tema metropolis. Entertainment, advertising value and arousal were made some statistically significant positive contributions to predicting the change in marketing performance. Social media advertising had greater significant positive effect on the marketing performance of medium enterprises compared to small enterprises. SMEs are encouraged to adopt social media advertising to support their traditional media outlets in order to improve their marketing performance