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Telemarketing ‘the best option’ for online start-ups

New online businesses can benefit more from telemarketing than any other method of promoting themselves, according to a newly published study.

Research in the Small Enterprises Development, Management & Extension Journal (Sedme) looked at the effectiveness of a variety of advertising techniques.

In the study, the research focused on promoting an online student portal, but to an extent its findings can be generalised to any new online start-up business.

“Traditional advertising is costly and [it] would be really hard for young start-ups to invest in advertising,” the authors write.

“Results indicate that telemarketing is the most effective tool of advertising to reach to the target audience for an online student portal and the same observations can be generalised for any online start-up business.”

In the article, the portal is described as an “educational service start-up company”, which aligns it more with B2B service providers than with consumer-facing firms.

This may go some way to explaining why traditional advertising channels are less effective, as B2B telemarketing can target a much more relevant audience, compared with the risk of more general advertising to the general public.