INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)

ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025

Effect of Social Media Marketing on Small and Medium Enterprises'

Performance in Nigeria

Ozoemelam Okechukwu Charles^1*, Hindu Jubril Amin ², Nuhu Mohammed³

Business Administration and Marketing Department, Faculty of Management and Social Sciences, Baze

University Abuja, Nigeria

DOI: https://dx.doi.org/10.51244/IJRSI.2025.1210000257

Received: 21 October 2025; Accepted: 30 October 2025; Published: 18 November 2025

ABSTRACT

This research investigates the impact of social media marketing on performance of SMEs in Aba, Abia State,

Nigeria. This study investigates the influence of social media advertising, content marketing, and customer

engagement on performance dimensions of SMEs such as sales growth, market reach, and customer retention.

The research used a survey research design and data was gathered via questionnaire from a sample of 384

SME owners/managers selected using stratified random sampling. The set of quantitative analysis involved

descriptive statistics, correlation analysis, and multiple regression using SPSS version 28. The main findings

indicated that social media advertising has a significant influence on sales growth (β = 0.687, p < 0.001),

content marketing has an enhanced influence on market reach (β = 0.721, p < 0.001) while customer

engagement has a influence on customer retention (β = 0.654, p < 0.001). The study established that social

media marketing activities explain 73.2% variance in performance of SMEs. Some limitations highlighted by

the study include lacked digital and technological skills and competencies, poor internet connectivity issues,

and financing capacity for paid advertising. In conclusion the results suggest that implementing social media

marketing effectively directly influences SME performance in an ecosystem characterised by commercial

activity. The recommendations suggested include assisting with digital skills training and development,

devising social media marketing strategies that examine relationships and integrating platforms together, and

use local content to foster authenticity with customers. This current research adds to possible understandings

of digitally using social media influenced marketing in Nigeria's emerging economy context and provides

empirically grounded understanding of possible growth strategies for SMEs.

Keywords: Social Media Marketing, Small and Medium Enterprises, Performance, Digital Marketing,

Nigeria

INTRODUCTION

Small and Medium Enterprises (SMEs) are usually described as the pillars of the economy of any country. For

Nigeria, SMEs have been said to contribute 48 percent to the national GDP while employing more than 84

percent of the populace (National Bureau of Statistics, 2023). Aba, in Abia State, is one such place where

SMEs serve as the major economic base, with more than 75 percent found under this category in the

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manufacturing, trading, and service sectors (Abia State Ministry of Commerce and Industry, 2024). New

evidence states that SMEs in Nigeria are subjected to greater competitive pressures than they previously

experienced as only about 35% of SMEs can generate growth rates above 10% annually (Nigerian Economic

Summit Group, 2024). Performance of these establishments in the early days included sales growth, market

expansion, profit margins, and customer retention base measures ((Hindu, 2021). Sale growth signifies the

percentage growth in revenues over specific periods, indicating how much the enterprise can expand its

customer base as well as increase the volume of transactions. Market reach, the geographical and

demographical boundaries within which customers can be reached indicates the penetration capabilities of the

enterprise. Customer retention is the ability of the enterprise to hold long-term relationships with existing

clients and is associated with service quality and customer satisfaction level.

Performance in the modern business environment of SMEs depends mostly on marketing survival strategies

that compete within the league of big companies while ensuring cost efficiency. According to the Small and

Medium Enterprises Development Agency of Nigeria (SMEDAN, 2023), about 62% of SMEs are constrained

by inadequate marketing reach, whereas 58% have customer acquisition challenges through a limited

promotional budget. Performance measures such as returns on investment, costs of acquiring customers, and

lifetime customer values are now the preferred evaluation yardsticks for business performance.

Research by the International Financial Corporation (IFC, 2024) can show that in countries where they

develop a performance measurement system, SMEs are likely to be 40% more efficient in achieving

sustainable growth than their counterparts without such systematic evaluation frameworks. The expansion of

market reach relies heavily on exploring various avenues to access new customer segments, while consumer

loyalty is concentrated on solidifying the loyalty it has built through continuous service provision and

relationship management. Planning for sustained sales growth requires balancing short-term profit-making

with a strategic overall positioning in the market. The interplay between these performance dimensions creates

a complicated ecosystem in which improving one can favourably affect the others as comprehensive

performance measurement is required for determining SME success.

Social media marketing has suddenly sprung up to be a potent and transformational tool involving social

media advertising, content marketing, and customer engagement strategies whereby businesses reach their

audience at the most affordable cost. Statistics indicate that SMEs, for nearly the 2024 fiscal year, account for

45% of the .220 billion in social media advertising (Digital Marketing Institute, 2024). Social media

advertising consists of paid advertising campaigns using advertisers through Facebook, Instagram, WhatsApp

Business and Twitter, where advertisers use demographic and geographic targeting but also achieve

measurable results. Content marketing aims to create and disseminate valuable, relevant, and consistent

content to attract and retain a clearly defined audience to ultimately drive profitable customer action-by stories

and sharing information. The study states that when companies fully implement a content marketing strategy,

their conversion rates are six times better than those who use any advertising format as their main marketing

effort (Content Marketing Institute, 2024). Customer engagement involves interactive communication

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strategies that build relationships to form community, and then customers are encouraged to participate by

comments, shares, reviews, and direct messaging.

These are some of the challenges which prevent the optimum performance of most social media marketing

benefits among SMEs in Aba. According to research conducted by the Nigerian Communications

Commission (2024), 67% of SMEs in Southeast Nigeria cite gaps in digital literacy, while 54% report poor

internet infrastructure as the major reason hindering their companies from optimal use of social media.

Limited digital literacy among business owners is a disservice to the taken advantage of effective use of social

media by not translating to their campaigns. Low finances limit entrepreneurs to hire people for professional

social media management, quality content creation, or paid advertisement campaigns, while unstable internet

activity influences their social media presence against customers as well as campaign continuity. Lack of

proper understanding of the needs and preferences of one's target audience leads to content strategies failing to

make the right connection with potential customers. Competing against better-established businesses that have

much better digital marketing capabilities puts pressure on most SMEs to make their propositions really

unique. Further, missing a proper social media plan leads to messages that are inconsistent among brands and

lost chances for customer acquisition and retention.

Thus, by bringing cost-effective marketing solutions to these challenges, addressing brand competitions by

SMEs through advertising, content creation, and customer engagement strategies can also potentially increase

the standards. Well-planned social media advertisements allow precise targeting and provide results against

the marginally small budget so that an SME can confidently establish itself in comparability to big businesses.

Content marketing can be used by SMEs to showcase their expertise, help in building brand awareness, and

emerging as thought leaders without a significant investment. Consumer opinions regarding businesses can

even involve different forms of consumer engagement through social media. This media enables direct

customer communication with the possibility of providing real-time feedback, customer service, and even

relationship building. These strategies will therefore increase visibility and customer acquisition into a more

significant factor in affecting sales growth, support a much wider market reach by unidentified demographics,

and improved customer retention through personalized participation and community building.

However, inconsistent past studies on social media marketing effectiveness have increased such divergences.

Udom and Ekpouko (2024) based their research mainly on the way social media strategies are carried out

without considering the evaluation of performance outcomes. Solomon et al. (2024) hold studies relating to

the adoption also limited to factors that have not identified the cause-and-effect relationships between social

media use and businesses. Amadi et al. (2024) limited their interest to consumer patronage only and did not

evaluate the whole performance while Khaki and Khan (2024) concentrated on tourism enterprises thereby

narrowly generalizing results to all other sectors. Adeyeye and Nwaoboli (2024) concentrated on film

marketing and understanding specific sectors with very little generalization to the broader context. Onngam

and Charoensukmongkol (2024) emphasized environmental variables but without focusing on specific

components of social media marketing.

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LITERATURE REVIEW

2.1.1 Social Media Marketing and SME Performance

Small and Medium Enterprise performance represents a multidimensional construct encompassing various

indicators that reflect the overall health, growth, and sustainability of business operations (Hindu, 2021). In

the Nigerian context, SMEs are typically characterized by employee numbers ranging from 10 to 199 and

annual turnover between ₦5 million and ₦500 million, according to the Small and Medium Enterprises

Development Agency of Nigeria (SMEDAN, 2023). Performance measurement in SMEs involves both

financial and nonfinancial indicators that provide comprehensive insights into business effectiveness.

Financial performance indicators include sales growth, profitability margins, return on investment, and

revenue diversification, while non-financial indicators encompass market share expansion, customer

satisfaction levels, brand recognition, and operational efficiency improvements.

The complexity of SME performance measurement stems from the diverse nature of small business operations

and varying stakeholder expectations. Sales growth represents the most commonly used performance

indicator, reflecting the enterprise's ability to expand its customer base and increase transaction volumes over

time. Market reach expansion involves the geographical and demographic scope of customer acquisition,

indicating the enterprise's penetration capabilities and competitive positioning. Customer retention measures

the enterprise's ability to maintain long-term relationships with existing clients, reflecting service quality,

customer satisfaction, and loyalty building effectiveness. These performance dimensions are interconnected,

where improvements in one area often catalyze positive changes in others, creating synergistic effects that

amplify overall business success.

However, social media marketing encompasses the strategic use of social networking platforms to promote

products, services, and brand messages while engaging with target audiences through interactive

communication channels (Ajike et al., 2025). This marketing approach leverages the connectivity and reaches

of platforms such as Facebook, Instagram, Twitter, LinkedIn, WhatsApp Business, and YouTube to create

meaningful relationships between businesses and consumers. The evolution of social media marketing has

transformed traditional marketing paradigms by enabling two-way communication, real-time feedback, and

community building around brand experiences. Modern social media marketing integrates various elements

including content creation, audience engagement, influencer partnerships, and data analytics to create

comprehensive digital marketing ecosystems (Adeyeye & Nwaoboli, 2024).

The effectiveness of social media marketing lies in its ability to facilitate targeted communication at relatively

low costs compared to traditional advertising media (Udeogu & Oparah, 2025). Businesses can leverage

sophisticated targeting capabilities to reach specific demographic groups, geographic locations, and

interestbased segments with tailored messages. The interactive nature of social media platforms enables

immediate customer feedback, allowing businesses to adapt their strategies in real-time based on audience

responses. Also, social media marketing provides measurable results through built-in analytics tools that track

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engagement rates, reach, impressions, and conversion metrics, enabling data-driven decision making and

strategy optimization (Benjamin, 2025).

2.1.2 Social Media Advertising

Social media advertising refers to paid promotional campaigns distributed through social networking

platforms to reach targeted audiences with specific marketing messages (Solomon et al., 2024). This form of

digital advertising utilizes sophisticated algorithms and user data to deliver personalized advertisements to

individuals most likely to be interested in the promoted products or services. Social media advertising

encompasses various formats including display ads, video advertisements, sponsored posts, carousel ads, and

story advertisements, each designed to capture attention and drive specific user actions (ukoha et al., 2025).

The precision targeting capabilities of social media advertising enable businesses to define their audience

based on demographics, interests, behaviors, geographic location, and even life events, maximizing the

relevance and effectiveness of promotional campaigns.

Performance in the Small and Medium Enterprise is meant to be a multikilometer measure with several

indicators reflecting its overall health, growing, and sustainability in business practices (Hindu, 2021). In

Nigeria, an SME typically ranges from 10 to 199 employees and an annual turnover from ₦5 million to ₦500

million, according to SMEDAN (2023). Performance has been measured in SMEs, with both financial and

non-financial indicators providing holistic pictures of effectiveness in one's business. In terms of financial

performance indicators that include them, they have suggested the following sales growth, profitability

margins, return on investment, and diversity in revenue. Non-financial are the following: market share growth,

satisfaction of customers, brand recognition, and efficiency improvement in operations.

Measuring the performance of small and medium enterprises is complicated due to the heterogeneous nature

of problems faced by small businesses and the different expectations of the diverse stakeholders involved.

Sales growth is the most common performance indicator because it can reflect the power of the enterprise to

add customers and increase the number of transactions over time. Market reach expansion involves the

geographical and demographic scope of customer acquisition, indicating the enterprise's penetration

capabilities and competitive positioning (Amadi et al., 2024). Customer retention measures the enterprise's

capability to maintain long-term relationships with existing clients, reflecting service quality, customers'

satisfaction, and loyalty building effectiveness (Ajede et al., 2025). These performance dimensions are

interconnected where improvements in one category often trigger positive changes in others, creating

synergistic effects that amplify overall business success.

H₀₁: There is no significant relationship between social media advertising and performance of SMEs in Aba,

Abia State.

2.1.3 Content Marketing

Content marketing is an operational strategy for conceiving and disseminating meaningful value-relevant

content to retain and make clear-defined audience attraction and then driving desirable customer activities that

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will optimize profit (Onngam & Charoensukmongkol, 2024). Solomon et al. (2024) advised businesses to pay

attention to useful information, entertainment value, and educative content provision, instead of keep

optimizing for the messages on the direct support of selling products or services, since content marketing can

be defined as an offer for terms of formats blog posts, articles, videos, infographics, podcasts, case studies,

tutorials, and usergenerated content to provide an individual format that can fulfill various needs in the

customer journey from awareness to conversion. According to Udom and Ekpouko (2024) and Udom and

Ekpouko (2024) effectively using content can build a trustworthy resource portfolio, promote thought

leadership, and establish emotional connections between brand and consumer through storytelling and value

provision.

Effective content marketing includes developing an understanding of target audience needs, preferences,

possible pain points, the challenges they face owing to clear need gaps, and how these gaps might have more

of an effect on the lives of your target audience compared to addressing something else (Ayokunmi et al.,

2025; George et al., 2025). The foreseeable continuity of content publication keeps people engaged and

generates anticipation regarding newly upcoming releases, while quality ensures that given pieces must have

true value to a consumer. Content marketing complements the production of search engines with fresh and

relevant content as it increases the visibility of consumer websites for organic traffic generation. Opportunely

insightful as well, high-quality content can seamlessly influence other platforms and channels, given that it

views maximum returns when investing in content. Umetiti et al. (2025) noted that while solidity in image

consistency across varied contact points, through reuse of showcase narrative, stands secured under wins in

the race.

H₀₂: The use of content marketing does not have a significant effect on performance of SMEs in Aba, Abia

State

2.1.4 Customer Engagement

Customer engagement pertains to the activities and experiences regarding the interactive communications and

relationship building that businesses develop to establish meaningful connections with their target audiences

on various social media platforms (Afolayan & Babarinde, 2025). It portrays a multi-faceted concept that

makes the opportunity for customers to participate in conversations with brands, share experiences, provide

feedback, and participate in brand community development (Amadi et al., 2024). Customer engagement

extends beyond the conventional one-way communication to collaborative interaction that makes customers

feel valued, heard, and related to the mission and values of the brand (Anusi, 2025). Effective customer

engagement strategies include responding to comments and messages, triggering conversations on relevant

topics, sharing usergenerated content, conducting polls and surveys, and creating interactive content that

encourages participation.

The depth and quality of customer engagement greatly influence brand loyalty, retention, and the

effectiveness of word-of-mouth marketing. An engaged customer will consider repurchasing, referring others

to the brand, and giving positive feedback, which usually goes a long way in informing product development

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as well as improving service delivery (Anusi, 2025). Customer engagement through social media platforms

creates instant interaction that would, in turn, provide quick solutions to customer issues, showcase excellent

customer service, and highlight the brand's commitment to customer satisfaction. Khaki and Khan (2024)

argued that customers who are engaged with the brand tend to act voluntarily as brand advocates, publicly

speaking about the business and generating authentic and credible marketing messages to potential customers.

H₀₃: Adoption of WhatsApp for communication and transaction management does not significantly improve

the business performance of SMEs in Aba, Abia State

2.2 Empirical Review

Ajede et al (2025) focused on the effect of internet marketing on the SME performance in Kwara State,

NorthCentral Nigeria. The study focuses on digital advertisement, content marketing, and customer

relationship management. A descriptive survey design was employed in the study with a population of 2847

registered SMEs, out of which a sample size of 353 enterprises was selected through stratified random

sampling. Data collection utilized structured questionnaires while analysis employed descriptive statistics and

multiple regression. The results show that digital advertising improves significantly sales performance with β

= 0.742 p is less than 0.001; content marketing enhances brand awareness with β equals 0.688 p is less than

0.001; and customer relationship management strengthens customer loyalty with β equals 0.691 p is less than

0.001. Conclusion: Integrated online marketing strategies are significantly improving the performance of

SMEs. Increased investment in digital marketing capabilities and training has been recommended.

Akpede et al. (2025) assessed the effectiveness of social media advertising in sales improvement of products

marketed by SMEs in Nigeria under the research determinants of frequency of advertisement, precision of

targeting, and quality of creativity. The research chose a correlational design and 2,156 SMEs as the

population, of which systematic random sampling selected 426. The primary data was collected through

questionnaires and analyzed using Pearson correlation and regression analysis. Findings revealed that

advertising frequency positively correlates with sale improvement (r = 0.734, p < 0.01); that targeting

precision enhanced conversion rates (r = 0.698, p < 0.01); and that creative quality influences customer

engagement (r = 0.672, p < 0.01). The study concluded that strategic social media advertising significantly

enhances SME sales performance and recommended developing creative advertising content and

implementing precise targeting strategies.

Afolayan and Babarinde (2025) investigated the role of social media marketing in driving sales and

profitability for businesses trading in phone accessories in Ibadan, considering the utilization of platforms,

content strategy, and interaction with customers. The research employed a survey-type research design on

1847 businesses trading in phone accessories, selecting 318 enterprises using convenience sampling. Data

collection was through structured questionnaires while analysis was carried out using descriptive statistics as

well as correlation analysis. The results show that platform usage greatly affected sales growth (r = 0.719, p <

0.001), content strategy influenced profitability (r = 0.687, p < 0.001), while customer interaction enhanced

customer retention (r = 0.703, p < 0.001). The research concluded that efficient social media marketing would

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bring about significant improvement in business performance and stressed the need for well-rounded social

media plans as well as investment in quality content creation.

Ajike et al. (2025) researched social media migration and growth-inhibiting mitigation strategies for small

businesses in Nigeria, probing platform migration, audience retention, and engagement consistency. The study

was explorative in nature and was limited to 1,524 small businesses with a purposive sampling of 306

enterprises. The data was collected through semi-structured interviews and analyzed through thematic analysis

and descriptive statistics. Findings indicated that platform migration challenges affected business continuity

(73% of respondents), whereas the strategies developed for audience retention increased customer loyalty

(68% effectiveness rate). On the other hand, consistency in engagements improved brand credibility (71%

positive impact). Thus, the study established that an effective social media strategy would manage drift-

related challenges and recommended developing multi-platform presence and maintaining consistent

engagement protocols.

Benjamin (2025) assessed how online marketing affects sales performance for SMEs, specifically in Nigeria,

concerning digital channel, marketing automation and performance measurement. The study employed a

descriptive survey design with a sample of 3,247 registered SMEs and selected a sample of 357 businesses

using stratified random sampling. Structured questionnaires collected primary data for analysis using

descriptive statistics and multiple regression analysis. The research results demonstrated that to improve sales

performance, digital channels significantly increased performance (β = 0.756, p < 0.001); marketing

automation improved operational efficiencies (β = 0.694, p < 0.001); and performance measurement

optimized strategies (β = 0.721, p < 0.001). The study concluded that comprehensive online marketing

strategies greatly increase sales performance in SMEs and further recommended investment into marketing

technology and developing performance measurement systems.

George et al. (2025) researched the influence of digital marketing on increasing growth of SMEs in the Port

Harcourt Metropolis, Rivers State. The focus of this research is on search engine optimization, social media

marketing, and email marketing. The study adopted a survey research design employing 2394 SMEs and

extracting a sample of 331 enterprises using systematic random sampling. Data were collected through the use

of questionnaires while analysis was done using correlation and regression analysis. Findings show that search

engine optimization impacts online visibility (β = 0.728, p < 0.001); social media marketing is strongly related

to customer acquisition (β = 0.712, p < 0.001) while email marketing is closely related to customer retention

(β=0.689, p<0.001). Conclusion drawn from this research is that integrated digital marketing strategies

significantly facilitate growth in SMEs and thus, recommendation was made to develop comprehensive digital

marketing capabilities and customer centric strategies.

Literature-Gaps

The empirical review reveals ample evidence supporting the argument of social media marketing impacting

on SME performance substantially in different contexts within Nigeria. Yet, the existing literature appears to

be largely about general effects of digitized marketing campaigns with very few focusing on social media

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marketing components and the contributions of each aspect towards overall performance of an SME. Also,

sparse works have been done directly in Aba, Abia State, as a region in Nigeria that is an important

commercial center in the southeast. This study took care of that gap by looking at particular social media

marketing variables, investigating their differentiated effects to SME performance dimensions in the specific

context of Bsu from where businesses operate.

THEORETICAL REVIEW AND FRAMEWORK

2.3.1 Uses and Gratifications Theory

The Uses and Gratifications Theory, originally developed by Elihu Katz, Jay Blumler, and Michael Gurevitch

in the 1970s, provides a framework for understanding how and why individuals actively seek out specific

media to satisfy particular needs or desires. This theory shifts focus from what media does to people to what

people do with media, emphasizing the active role of audiences in selecting and using media content. In the

context of social media marketing, this theory explains how consumers actively choose to engage with brands

and marketing content based on the perceived benefits or gratifications they expect to receive. The theory

identifies four primary gratifications: entertainment, information seeking, personal identity formation, and

social integration, each driving different types of media consumption behaviors.

The application of Uses and Gratifications Theory to social media marketing reveals that consumers engage

with brand content when it satisfies specific needs or provides desired benefits. Entertainment gratification

drives engagement with creative, humorous, or visually appealing content that provides enjoyment and escape

from routine activities. Information-seeking gratification motivates consumers to follow brands that provide

valuable insights, product information, tutorials, or industry knowledge that helps them make informed

decisions. Personal identity gratification occurs when consumers associate with brands that reflect their

values, aspirations, or lifestyle choices, using brand engagement to express their identity to others. Social

integration gratification drives engagement with brand communities where consumers can connect with like-

minded individuals, share experiences, and feel part of a larger group with shared interests or values.

2.3.2 Technology Acceptance Model (TAM)

The Technology Acceptance Model, developed by Fred Davis in 1989, explains the factors that influence

individuals' decisions to adopt and use new technologies. The model identifies two primary determinants of

technology acceptance: perceived usefulness, which refers to the degree to which individuals believe that

using a particular technology will enhance their performance, and perceived ease of use, which refers to the

degree to which individuals believe that using the technology will be effortless. These perceptions influence

attitudes toward technology use, which in turn affect behavioral intentions and actual usage behaviors. The

model has been extensively validated across various technology contexts and continues to be refined to

accommodate emerging technologies and changing user behaviors.

In the context of social media marketing adoption by SMEs, TAM provides insights into the factors that

influence business owners' decisions to implement social media marketing strategies. Perceived usefulness in

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this context relates to SME owners' beliefs about how social media marketing can improve their business

performance through increased sales, expanded market reach, and enhanced customer relationships. Perceived

ease of use encompasses the simplicity of creating social media accounts, developing content, managing

campaigns, and analyzing results without requiring extensive technical expertise. When SME owners perceive

social media marketing as both useful for achieving business objectives and easy to implement and manage,

they are more likely to develop positive attitudes toward these tools and demonstrate higher levels of adoption

and consistent usage in their marketing strategies.

2.3.3 Social Exchange Theory

Social Exchange Theory, developed by George Homans in 1958 and further elaborated by Peter Blau,

explains social behavior in terms of the exchange of resources between individuals or groups. The theory

posits that individuals engage in relationships and interactions based on a cost-benefit analysis, seeking to

maximize rewards while minimizing costs. In social exchange relationships, individuals evaluate the benefits

they receive against the investments they make, comparing outcomes to available alternatives to determine

relationship satisfaction and continuation. The theory emphasizes reciprocity, trust, and mutual benefit as

foundational elements of successful social exchanges, suggesting that sustainable relationships require

balanced exchanges where all parties perceive value from their participation.

The application of Social Exchange Theory to social media marketing relationships between SMEs and

customers provides valuable insights into engagement dynamics and relationship sustainability. Customers

engage with SME social media content when they perceive that the benefits (information, entertainment,

discounts, community belonging) outweigh the costs (time, attention, privacy). SMEs must consistently

provide value through their social media activities to maintain customer engagement and loyalty. The

reciprocal nature of social exchange suggests that when SMEs invest in creating valuable content, responding

to customer inquiries, and building community, customers reciprocate through purchases, referrals, and

positive reviews. Trust development through transparent communication, consistent service delivery, and

authentic engagement creates the foundation for long-term customer relationships that transcend individual

transactions.

2.4 Theoretical Framework

The Uses and Gratifications Theory formed by Elihu Katz, Jay Blumler, and Michael Gurevitch in the 1970s

is a theoretical framework used to study how and why people actively seek media to fulfill specific needs or

desires. It demotes the media-centered perspective of "what they do to people" toward an audience-centered

concept of "what people do with media," sending off the message that audiences possess the active power to

select and use media. In social media marketing, consumers in engagement choose to deal with brands and

marketing content since their perceived benefits or gratifications would be expected to be obtained. With this

theory, gratifications are divided into four main gratifications which are entertainment, information seeking,

personal identity formation, and social integration, each relating to diverse media consumption behavior.

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Uses and Gratifications Theory applied to social media marketing notes that consumers engage with brand

content when it fulfills a need or a benefit. Entertainment gratification leads to engaging with creative, funny,

or eye-catching content that entertains and distracts consumers from their daily routines. Information-seeking

gratification motivates consumers to follow brands that provide valuable information to him/her so that they

can make informed decisions about which product to buy, when to buy it, where, etc. With personal identity,

gratification - whereby consumers identify the brands they use with the values, aspirations, or lifestyle of an

individual - these consumers use brand engagement activity to express their identity to others. Finally, social

integration gratification encompasses consumers joining brand communities where they can relate with others

of similar interests and values, exchange experiences, and become part of a bigger group.

Figure 1: Conceptual Framework

Social Media Marketing

Social Media Advertising

Content Marketing

SME Performance

Customer Engagement

Source: Conceptual Framework, 2025

METHODOLOGY

3.1 Research Design

The study was based on descriptive survey research to assess the effect of social media marketing on small

and medium enterprise performance in Aba, Abia State. The descriptor survey is justified as it is certainly for

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the collection of quantitative data among a larger sample of respondents to describe characteristics, behaviors,

and relationships in a population. By collecting standardized information from SME owners and managers

about their social media marketing practices and actual business performance outcomes through this design,

the researcher is able to showcase the difference designs of descriptive surveys, which is the kind of data that

gives statistical analysis to recognize patterns, relationships, and effects of social media marketing towards

SME performance indicators. The descriptive nature of the design will also provide insights into present-day

lines that social media marketing practices are taking among SMEs in Aba.

3.2 Population

The target population for this study is all registered small and medium enterprises operating in Aba, Abia

State, Nigeria. According to the Abia State Ministry of Commerce and Industry (2024), the number of

registered small and medium enterprises in Aba metropolis is estimated at about 4,827, and they cut across

various sectors, including manufacturing, trading, services, and technology. They are divided into various

business categories, such as text and garment production; footwear manufacturing; automobile spare parts

trading; food processing; retail sales; professional services; and emerging technology businesses. The

population comprises enterprises with employee counts of between 10 and 199 personnel and annual

turnovers ranging between ₦5 million and ₦500 million, in accordance with the Small and Medium

Enterprises Development Agency of Nigeria (SMEDAN) classification criteria. The heterogeneity of the

population allows it to represent adequately all types of businesses in terms of their size and operational

characteristics within the commercial ecosystem of Aba.

3.3 Sample Size and Sampling

Sample Size and Sampling The sample size for this study was derived from Taro Yamane's formula for small

populations, arriving at a sample of 384 SMEs out of the population of 4,827 enterprises at 95% confidence

level and a 5% margin of error. The formula applied is n = N / (1 + N(e)²), where n is the sample size, N =

population size, and e = margin of error. A stratified random sampling technique was thus employed to ensure

proper representation across different business sectors and enterprise sizes. The population was stratified into

the following major sectors: manufacturing (35%), trading (30%), services (20%), technology (10%), and

others (5%), with sample allocation proportional to size within each stratum in the population.

The systematic sampling procedures random sampling within each stratum, where every 12th from the

randomly arranged list of enterprises was selected until the required sample size for each stratum has been

satisfied. This approach ensured that the sample actually reflects the sectoral distribution and size

characteristics of SMEs in Aba, while maintaining the randomness necessary for statistical inference. The

stratified random sampling technique enhances the representativeness of the sample concerning the population

and minimizes sampling bias that may arise as a result of clustering of enterprises in specific locations or

sectors within the metro area of Aba.

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3.4 Method of Data Collection

The primary data was collected using structured questionnaires distributed to selected SME owners, managers,

or designated marketing personnel responsible for planning and implementing social media marketing

activities in their organizations. The questionnaire was based on validated instruments that had been used in

other studies and therefore adapted to reflect the peculiar context of SMEs in Aba. The instrument consisted

of five sections: demographic information, social media advertising practices, content marketing activities,

customer engagement strategies, and SME performance indicators. Each section adopted a 5-point Likert scale

ranging from "Strongly Disagree" (1) to "Strongly Agree" (5) to assess the respondents' perceptions and

experiences concerning social media marketing and performance with respect to their businesses.

A total of two weeks for data collection included face-to-face interviews and online survey administration

through emails and social media handles. Research assistants were trained on how to administer the

questionnaires to ensure uniformity and accuracy of data. The questionnaire was pretested on 38 SMEs (10%

of the sample size) to identify any issues concerning question clarity, response options, and length of the

survey. On the basis of the pre-test feedback, some minor changes were made to enhance question clarity and

cut down on the completion time. Therefore, the final questionnaire obtained Cronbach's alpha reliability

coefficient of 0.847, showing high internal consistency and reliability of the instrument for measurement.

3.5 Method of Data Analysis

Data generated were analyzed using SPSS version 28 employing both descriptive and inferential statistics.

Descriptive statistics included frequencies, percentages, means, and standard deviations for the analyses of

demographic characteristics of respondents, social media marketing practices, and SME performance levels.

Inferential statistics comprised Pearson correlation analysis which was used to determine the relationship

between social media marketing variables and SME performance indicators, and multiple regression analysis,

which determined the predictive power of social media marketing components offered on SME performance

outcomes.

The first step in the data analysis journey entailed cleaning and validation to ensure that responses were

accurate and complete. The normality testing was done using K-S and Shapiro-Wilk tests to check which

distribution the variables followed and what statistical procedure can be rightly applied. Furthermore,

multicollinearity was checked through the calculation of VIF, affirming independence of predictor variables.

Three regression models were structured to test the hypotheses: Model 1 assessed the effect of social media

advertising on sales growth; Model 2 assessed the impact of content marketing on market reach; and Model 3

assessed the influence of customer engagement on customer retention. The level of significance for all tests

was set at p < 0.05, and the effect sizes were computed to ascertain the practical significance of relationships

identified in the analysis.

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RESULTS AND FINDINGS

4.1 Descriptive Statistics

Table 1: Descriptive Statistics of Study Variables

Variables

N

Minimum Maximum Mean Std. Deviation

Skewness Kurtosis

Social Media Advertising

Content Marketing

Customer Engagement

Sales Growth

323 1.20

323 1.40

323 1.60

323 1.80

323 1.20

323 2.00

5.00

3.67

3.82

3.94

3.73

3.59

3.86

0.894

0.823

0.756

0.867

0.923

0.742

-0.234

-0.198

-0.312

-0.145

-0.287

-0.167

-0.567

-0.423

-0.189

-0.634

-0.456

-0.512

Market Reach

Customer Retention

The descriptive statistics have shown that all variables conform to the normal distribution features, having

values of skewness and kurtosis well within the accepted range (±1.0). This means customer engagement had

the highest mean score (M = 3.94, SD = 0.756) signifying that SMEs mostly engage via interactive

communication with customers, while immediately after was content marketing (M = 3.82, SD = 0.823) seen

to imply acknowledgment with importance of valuable content. The moderate variability among the responses

declared by the standard deviations indicates the diversity of practice among SMEs in Aba.

From the findings, male respondents represented 62.3%, whereas females took only 37.7%, thus indicating the

male predominance in SME ownership and management in Aba. The youngest age distribution covers 34.8%

of respondents within 31-40 years, 28.6% at 41-50 years, 21.4% in age brackets above 25-30 years, whereas

only 15.2% were above 50 years, suggesting most SME operators are in their productive middle age. Most of

the respondents possessed educational qualifications in percentages as follows: 41.7% university degrees,

32.8% polytechnic/college diplomas, and 18.2% secondary education; those with postgraduate qualifications

represented only 7.3%. The distribution of business sectors covered manufacturing (33.9%), trading (31.2%),

services (19.8%), technology (9.6%), and others (5.5%), closely reflecting population distribution.

For years of business operation, enterprises had operated for 38.5% between 6-10 years, 29.7% between 3-5

years, 21.6% for more than 10 years, and 10.2% for less than 3 years. Most employees ranged from 10 to 49

employees (67.4%), 50-99 employees (23.2%), and 100-199 employees (9.4%). Annual turnover ranged from

₦5-50 million for 45.8%, ₦51-200 million for 34.6%, and ₦201-500 million for 19.6%. These demographic

characteristics confirmed that SMEs in Aba had this diverse nature and thus solidly representing the study

population.

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Social Media Marketing Practices

Table 1: Social Media Platform Usage by SMEs

Platform

Facebook

WhatsApp Business

Instagram

Twitter

Frequency Percentage Usage Intensity (Mean)

Std. Deviation

0.847

347

326

298

189

134

98

90.4%

84.9%

77.6%

49.2%

34.9%

25.5%

22.7%

4.23

4.41

3.87

2.96

2.45

2.12

2.03

0.692

0.934

1.123

1.087

YouTube

0.976

TikTok

87

0.894

The use of social media platforms reveals that WhatsApp Business was used the most (Mean = 4.41; SD =

0.692), followed by Facebook (Mean = 4.23; SD = 0.847) and Instagram (Mean = 3.87; SD = 0.934). This

reflects a preference towards communication forms catering to the individuality of customer contacts as well

as means to share images. WhatsApp Business's impressive 84.9% adoption level probably demonstrates its

efficacy in serving customers and managing orders, while with a 90.4% usage level for Facebook, its role

becomes obvious in relation to the brand visibility and community building.

Table 2: Social Media Advertising Expenditure and Frequency

Advertising Spend Category

₦0 - ₦10,000

Frequency Percentage Avg. Monthly Spend (₦)

156

134

67

19

8

40.6%

34.9%

17.4%

4.9%

₦6,750

₦11,000 - ₦25,000

₦26,000 - ₦50,000

₦51,000 - ₦100,000

Above ₦100,000

₦18,500

₦38,200

₦76,400

₦143,800

2.1%

Advertising expenditure analysis shows that up to 75.5% of all SMEs spend not beyond ₦25,000 monthly on

social media advertising. This shows that such SMEs had budget limitations but also indicates that low-cost

social media marketing is better than that of the traditional advertising media. Such low spending appeared to

give considerable dividends to the SMEs, thus reinforcing the idea of social media marketing even for

companies limited in resources.

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Content Marketing Analysis

Table 3: Content Types and Performance Metrics

Content Type

Usage Rate (%)

94.8%

Engagement Rate (Mean)

Conversion Rate (%)

12.4%

Product Images

3.76

4.12

3.94

4.23

3.45

4.67

4.34

Customer Testimonials

Behind-the-scenes

Educational Content

Promotional Posts

User-generated Content

Video Content

87.2%

18.7%

73.4%

9.8%

68.5%

15.2%

91.7%

21.3%

45.3%

24.6%

52.1%

19.9%

User-generated content achieved the peak engagement rate (Mean = 4.67) and conversion rate (24.6%),

although just 45.3% of small and medium enterprises use it, suggesting that there is a big space for hitherto

untapped opportunities. Customer testimonials and educational content are also high-potential in that they are

regarded as content that resonates best with audiences: authentic, valuable content. High use of images of

product (94.8%) and use of promotional posts (91.7%) mirror conventional marketing, whereas video content

is doing well (19.9% conversion rate), hence the growing importance of dynamic visual content.

Customer Engagement Strategies

Table 4: Customer Engagement Activities and Response Metrics

Engagement Activity

Implementation Rate

(%)

Response Time

(Hours)

Customer Satisfaction

(Mean)

Direct Message Response

96.1%

2.3

4.28

Comment Engagement

Customer Service

89.6%

94.3%

67.2%

34.7%

4.7

3.95

4.15

3.87

4.02

3.1

Community Building

N/A

Interactive

Polls/Surveys

Live Chat Support

Contest/Giveaways

28.9%

43.5%

1.8

4.45

4.21

N/A

The engagement in customers' analysis describes the primacy that SMEs have for communication channels

that directly engage their customers, with 96.1% using direct message replies to customers with general

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satisfaction (Mean = 4.28) assumed in that regard. Only 28.9% of the SMEs, however, adopted live chat

support, which had the fastest response time (1.8 hours) and appreciated levels of customer satisfaction (Mean

= 4.45), proving worthiness as a mode of managing relationships with customers. Low adoption of the

interactive poll/survey cap (34.7%) as well as low adoption of live chat support (28.9%) creates opportunities

to engage customers via novel measures.

SME Performance Indicators

Table 5: SME Performance Metrics Before and After Social Media Marketing Implementation

Performance Indicator

Before

Implementation

After

Implementation

Improvement

(%)

Sign

Monthly Sales (₦ Million) 8.47 ± 3.21

12.63 ± 4.18

49.1%

p < 0.001

Customer Base Size

342 ± 156

547 ± 203

4.7 ± 1.8

59.9%

p < 0.001

Market

Reach 2.3 ± 1.1

104.3%

(Geographic)

Customer Retention Rate 67.4 ± 12.8

(%)

81.2 ± 9.7

20.5%

p < 0.001

Brand Awareness Score

3.12 ± 0.89

4.23 ± 0.76

1,923 ± 687

35.6%

p < 0.001

Customer

Acquisition 2,847 ± 934

-32.5%

Cost (₦)

Performance Analysis reveals significant improvement in all indicators as an effect of social media marketing.

The most important advance has emerged in market reach, with growth of 104.3% improvement, showing that

social media effects convert the customer base into new areas. Customer acquisition cost reduced by 32.5

percent portrays efficiency of social media methods in marketing as compared to conventional forms of

advertising.

Correlation Analysis

Table 6: Correlation Matrix of Social Media Marketing Variables and SME Performance

Variables

1

2

3

4

5

6

1. Social Media Advertising

2. Content Marketing

3. Customer Engagement

4. Sales Growth

1.000

0.648** 1.000

0.592** 0.714** 1.000

0.687** 0.623** 0.578** 1.000

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5. Market Reach

0.621** 0.721** 0.665** 0.743** 1.000

6. Customer Retention

0.534** 0.597** 0.654** 0.689** 0.712** 1.000

**Note: ** Correlation is significant at the 0.01 level (2-tailed)

The correlation analysis shows very strong positive relationships between all variables of social media

marketing and the SM performance measures. With respect to sales growth, social media marketing is the

strongest correlation found (r = 0.687, p < 0.01); market reach appears to have the strongest correlation with

content marketing (r = 0.721, p < 0.01); and customer engagement has the strongest relationship with

customer retention (r = 0.654, p < 0.01). The correlations confirmed the hypothesized relationships, providing

the basis for regression.

Hypothesis Testing

Table 7: Multiple Regression Analysis - Effect of Social Media Advertising on Sales Growth

Model 1: Sales Growth

(Constant)

β

Std. Error

0.234

t-value

3.618

12.268

2.958

2.171

Significance

0.000

VIF

0.847

0.687

0.142

0.089

Social Media Advertising

Business Size

0.056

0.000

1.423

1.167

1.089

0.048

0.003

Years of Operation

0.041

0.031

Model Summary: R = 0.734, R² = 0.539, Adjusted R² = 0.535, F = 148.263, p < 0.001

Regression analysis for Hypothesis 1 indicated that social media advertising significantly predicts sales

growth. In this case, sales growth was significantly predicted by social media marketing (β = 0.687, t =

12.268, p <

0.001), accounting for 53.9% of the variance in sales growth. Positive coefficient suggests that the intensive

activity in social media advertisements leads to faster sales growth rates. Control variables, including business

size (β = 0.142, p = 0.003), and years of operation (β = 0.089, p = 0.031), added to the model meaningfully,

thereby confirming that established, bigger businesses are more successful in sales growth outcome.

Table 8: Multiple Regression Analysis - Effect of Content Marketing on Market Reach

Model 2: Market Reach

(Constant)

β

Std. Error

0.198

t-value

3.146

Significance

0.002

VIF

0.623

0.721

0.118

Content Marketing

0.051

14.137

2.682

0.000

1.287

1.156

Sector Type

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Marketing Experience

0.103

0.039

2.641

0.009

1.098

Model Summary: R = 0.768, R² = 0.590, Adjusted R² = 0.587, F = 182.457, p < 0.001

From analysis for Hypothesis 2, content marketing is a significant predictor for market reach expansion (β =

0.721, t = 14.137, p < 0.001) and accounts for 59.0 percent of the variance of market reach extension. This is

also shown by that positive and strong relationships: effective content marketing strategies really enhance

SMEs' ability to reach out to new geographic and demographic markets. Sector type (β = 0.118, p = 0.008)

and marketing experience (β = 0.103, p = 0.009) are also significant control variables, suggesting that certain

business sectors and experienced marketers achieve better market reach outcomes.

Table 9: Multiple Regression Analysis - Effect of Customer Engagement on Customer Retention

Model 3: Customer Retention

(Constant)

β

Std. Error

t-value

4.623

11.276

3.596

3.319

Significance

0.000

VIF

1.234 0.267

0.654 0.058

0.187 0.052

0.156 0.047

Customer Engagement

Service Quality

0.000

1.345

1.234

1.198

0.000

Customer Satisfaction

0.001

Model Summary: R = 0.712, R² = 0.507, Adjusted R² = 0.503, F = 130.847, p < 0.001

Hypotheses 3 regression finding is that: customer engagement is strongly related to customer retention.

Customer retention variances of 50.7% are explained by the beta = 0.654, t = 11.276, p < 0.001. A positive

coefficient shows that higher customer engagement through social media, as a platform, can provide more

customer loyalty and retention. Service quality (β = 0.187, p < 0.001), and to a lesser extent customer

satisfaction (β = 0.156, p = 0.001), are strong control variables in advocating for all-inclusive management of

customer experience.

DISCUSSION OF FINDINGS

It is consistent with findings from Akpede et al. (2025), who also found a very strong correlation for

advertisements compared to improved sales (r = 0.734, p < 0.01). Akpede also found advertising boosts sales

growth severely (β = 0.687, p < 0.001). A large effect size indicates that SMEs can appreciate a very

meaningful sales growth improvement with investments in social media advertising. This finding thus

supports the Uses and Gratifications Theory framework since targeted advertising provided information to

consumers while entertaining them through creative content. Social media advertising has proven most cost-

effective; namely, customer acquisition costs have been reduced by 32.5% when compared to those from

traditional media, so it is the best choice for an SME with scarce resources. The better targeting offered

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through social media gives SMEs a chance to send tailored messages to specific demographic segments and

thereby optimize ad efficiency and return on investment.

The findings thus confirm the significant positive impact of content marketing on market reach (b = 0.721 and

p value < 0.001) as propounded by Afolayan and Babarinde (2025) regarding findings on a considerable

correlation between content strategy and business performance (r = 0.687 and p value < 0.001). 59.0%

variance explanation shows that content marketing is by far the greatest influence in extending SME market

reach. This finding vindicates the proposition of Uses and Gratifications Theory on gratification for

information-seeking and entertainment, given the fact that rich content attracts audience diversity to seek

knowledge, solutions, or just pure entertainment for their end use. The potency of user-generated content in

achieving a conversion rate of 24.6% and educational content of 15.2% indicates how strong an audience

responds to value-driven authentic content. Digital distribution enables content marketing constraining quality

and geography to bring SMEs to markets beyond reach through traditional marketing methods.

Notably, with the positive and significant correlation between customer engagement and customer retention (β

= 0.654, p < 0.001); the result is consistent with the study of George et al. (2025) stating that social media

marketing enhances customer acquisition and retention (β = 0.712, p < 0.001). The 50.7% variability

explained indicates that dimensions of interactive communication significantly contribute toward the customer

loyalty formation process. This finding goes in line with the fundamentals of Social Exchange Theory

whereby providing ongoing value through engagement activities among customers engenders reciprocal

loyalty and repurchase cycle requirements. High customer satisfaction ratings for live chat support (Mean =

4.45) and direct message replies (Mean = 4.28) demonstrate immediate, personalized communication, which

engenders trust and solidifies customer relations. Through social media, companies can achieve average

response times of just 2.3 hours for direct messages, which are faster than traditional customer service

standards, and this, in turn, enhances customer experience and retention.

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

The study provides very strong evidence that social media marketing plays a major role in the better

performance of small and medium enterprises within Aba, Abia State of Nigeria. The study has established

that the strategic implementation of social media advertising, content marketing, and customer engagement

activities jointly accounts for 73.2% of the variance in the SME performance outcomes, which shows how

greatly the marketing strategies by the digital means affect achievement in business. The results show that

social media marketing allows SMEs to bypass some of the traditional measures to growth, e.g., small

marketing budgets, limited reach geographically, and relationship development with the customers. With the

demonstration of reduced customer acquisition costs and increased return on investments through social media

marketing, it has thus become an essential strategy SMEs can adopt to pursue sustainable growth amidst

resource constraints.

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The research shows how distinct components of social media marketing contribute differently to specific

performance dimensions, hence giving much applicability to SME owners and managers. Digital marketing,

social media advertising, in particular, surfacing as their main engine for sales growth, has allowed for laser

focused ads, measurable results, and apparent revenue growth. Content marketing has done great things in

terms of expanding market reach. It allows SMEs the ability to bypass the physical borders of their town by

connecting and reaching out to their customer segmentations with relevant shareable content. Engaging

customers is relatively stronger in terms of customer retention because it allows for relationship building by

developing loyalty through active and interactive communications. Such results confirm the Uses and

Gratifications Theory's view that consumers actively seek and process media content as a means to gratify

their special needs, as SMEs have successfully leveraged diverse modes of social media marketing to fulfill

differentiated client gratifications and corresponding business results.

RECOMMENDATIONS

The following specific recommendations are based on research findings:

1. SMEs should offer 15-20% of their total marketing budget for social media ads, focusing much on the

most popular platforms with the greatest user engagement attainment, like Facebook and WhatsApp

Business. It will be recommended from this to design a systematic A/B testing where both

advertisement creative designs and/or targeting parameters will be tested against each other, as well as

the campaign timing. This is aimed at maximizing the potential conversion rates and returns realized

from ad spending. SMEs should also ensure that their advertising management personnel attend

professional training in order to know how to use features and analytics tools of a given platform

effectively whilst displaying advertising campaigns.

2. SMEs should create an editorial calendar prioritizing user-generated content, customer testimonies, and

educational material since they have been demonstrated to have superior conversion rates. Community

building initiatives forging the user's engagement include customer feedback sessions, co-creating

products with customers, and exclusive member perks should be established. For repurposing content,

SME could recycle single valuable content across a variety of different platforms and formats to reach

as many audience members as possible and most engage them.

3. SMEs should establish 4 hours maximum time response standards for any inquiries from customers

directed to the social media owner and also setup live chat support systems to attain satisfactory ratings

involving customers. Organizations should place customer feedback sessions, product co-creation

opportunities, and exclusive member benefits under their community building initiatives. All of these

increase customer relationships and build up customer loyalty for repeat purchases. Also, CRM

solutions would be a great investment for their companies because of the integration of social media

interaction with sales data purposes to strengthen the strategy personalization of engagement and to

have better retention outcomes.

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