The Digital Marketing Dilemma: DIY vs. Done-for-You

Key Points

Research suggests digital marketing adoption is high among Canadian small businesses, with 94% posting on social media monthly and 79% weekly.
It seems likely that poor online presence contributes to small business failure, with 21.5% failing in the first year and marketing challenges often cited.
The evidence leans toward a preference for "done-for-you" services, with about 20% of businesses using external agencies exclusively, compared to 47% handling marketing in-house (DIY).

Digital Marketing Adoption Rates

Canadian small businesses show strong digital marketing adoption, with 94% posting on social media monthly and 79% weekly, primarily using platforms like Instagram and Facebook (80%) Digital Marketing Statistics in Canada for 2025. Additionally, 24% use paid online advertising, indicating a reliance on professional digital tools for visibility.

Small Business Failure Rates and Online Presence

Small business failure rates in Canada are notable, with 21.5% failing in their first year, 50% surviving five years, and 33% reaching ten years Small Business Statistics in Canada for 2025. While direct data linking failure to poor online presence is limited, challenges like marketing and cash flow (33% cite as biggest issue) suggest online execution is critical, especially as consumer behavior shifts online.

Preference for Done-for-You vs. DIY

Research indicates about 20% of businesses use external agencies exclusively for digital marketing ("done-for-you"), while 47% handle it in-house (DIY), and 33% use a combination How Businesses Leverage Digital Marketing: 2022 Survey. This suggests a significant portion prefer professional execution, aligning with Markage.ca's focus, especially given small businesses often lack the expertise for effective digital marketing.

Report: Empirical Grounding on Digital Marketing and Small Business Preferences

This report provides a comprehensive analysis of digital marketing adoption rates, small business failure rates due to poor online presence or execution, and the preference for "done-for-you" (DFY) versus do-it-yourself (DIY) approaches among Canadian small businesses. The findings are grounded in recent data from reputable sources, offering insights for strategic planning, particularly for agencies like Markage.ca focusing on execution-driven services.

Digital Marketing Adoption Rates Among Small Businesses in Canada

Digital marketing is a cornerstone for small businesses in Canada, with widespread adoption reflecting its importance in reaching customers. Key statistics include:

Social Media Engagement: According to Digital Marketing Statistics in Canada for 2025, 94% of small businesses post on social media monthly, with 79% doing so weekly. This high engagement rate underscores the reliance on platforms like Instagram and Facebook, used by around 80% of businesses, while Twitter and YouTube are utilized by approximately 60%.
Web Presence and E-commerce: Statistics Canada’s 2021 survey, The Daily — Digital technology and Internet use, 2021, reveals that 89% of businesses with five or more employees have some form of web presence, including 78% with company websites and 61% with social media accounts. Additionally, 33% report e-commerce sales, totaling $398 billion in 2021, with small businesses averaging $580,000 in sales, showing a 65% increase from 2019.
Paid Online Advertising: The same Statistics Canada report indicates that 24% of businesses used paid online advertisements in 2021, up from 23% in 2019, with spending totaling $6.5 billion, including 82% using social media ads and 46% employing search engine optimization.
Investment Trends: A 2021 BDC study, Small and medium-sized businesses that invest in digital technologies, found that 91% of small and medium-sized businesses invested in digital technologies, averaging $118,000, though only one in five have an "advanced digital profile," indicating a gap in advanced strategy adoption.

These statistics highlight a robust digital marketing landscape, with social media and web presence being dominant, but with room for growth in advanced strategies like email marketing (19% adoption) and paid ads.

Small Business Failure Rates Due to Poor Online Presence or Execution

Small business failure rates in Canada are significant, and while direct data linking failure to poor online presence is scarce, indirect evidence suggests a strong correlation. Key findings include:

General Failure Rates: Small Business Statistics in Canada for 2025 indicates that 21.5% of small businesses fail before the end of their first year, with only 50% surviving five years and 33% reaching ten years. This high failure rate is contextualized by challenges like cash flow, with 33% of owners citing it as their biggest issue, and marketing often mentioned as a contributing factor.
Link to Online Presence: The same source notes that many small businesses struggle to create a competitive online presence, especially as consumer behavior shifts online post-pandemic. Why Small Businesses Fail and How to Avoid Failure suggests poor marketing, including digital, is a common reason, with microenterprises (1-4 employees) having a 70.4% survival rate after five years compared to 66.9% for other small businesses, hinting at digital readiness disparities.
Expert Insights: Small Business Statistics in Canada for 2025 highlights that lack of workforce or know-how to compete digitally is a barrier, suggesting that poor online execution likely contributes to failure, especially in a market where 94% engage in social media, and those not doing so may be at a disadvantage.

Given the lack of direct data, it’s reasonable to infer that poor online presence and execution are contributing factors, particularly as digital channels become essential for customer reach and sales, with failure rates potentially higher for businesses not adopting effective digital marketing strategies.

Preference for Done-for-You Focus vs. DIY

The preference for "done-for-you" (DFY) digital marketing services versus do-it-yourself (DIY) approaches is critical for understanding Markage.ca’s market positioning. While Canadian-specific data is limited, insights from surveys provide a foundation:

Survey Findings: The How Businesses Leverage Digital Marketing: 2022 Survey by UpCity, covering both the US and Canada, surveyed 600 respondents, including small businesses. It found that 47% handle marketing in-house (DIY), 33% use a combination of in-house and external agencies (done-with-you, DWY), and 20% use external agencies exclusively (DFY). While not Canada-specific, this suggests a significant portion prefer professional execution, aligning with DFY services.
Barriers to DIY: Advancing Digital Adoption Amongst Startups & Small Businesses from Startup Canada (2017) notes that 44% of small business owners (SBOs) cite high cost as a barrier to digital adoption, 38% cite time, and 22% are concerned about privacy and reliability. This indicates that DIY may be challenging due to resource constraints, pushing businesses toward DFY services.
Advantages of DFY: Rated #1 Digital Marketing Agency for Small Business in Canada & USA highlights that small businesses benefit from DFY services due to expert execution, quick market entry, and detailed reporting, addressing the lack of expertise and time. This aligns with Markage.ca’s focus on execution-driven services, suggesting a market need for such offerings.

Given these insights, it seems likely that small businesses, particularly those lacking digital marketing expertise, prefer DFY services, with 20% exclusively outsourcing and an additional 33% using hybrid approaches, indicating potential for Markage.ca to capture this segment.

Summary Table of Key Statistics

Metric	Percentage/Value	Source
Social Media Posting (Monthly)	94%	Digital Marketing Statistics in Canada for 2025
Web Presence (2021)	89%	The Daily — Digital technology and Internet use, 2021
Company Websites (2021)	78%	The Daily — Digital technology and Internet use, 2021
E-commerce Sales (2021)	33%	The Daily — Digital technology and Internet use, 2021
First-Year Failure Rate	21.5%	Small Business Statistics in Canada for 2025
Five-Year Survival Rate	50%	Small Business Statistics in Canada for 2025
Digital Tech Investment (2021)	91% (avg $118,000)	Small and medium-sized businesses that invest in digital technologies
DIY Marketing (2022 Survey)	47%	How Businesses Leverage Digital Marketing: 2022 Survey
DFY Marketing (2022 Survey)	20%	How Businesses Leverage Digital Marketing: 2022 Survey

This table summarizes the empirical data, providing a foundation for strategic decisions, emphasizing the need for enhanced digital marketing support, particularly through DFY services, to reduce failure rates and boost success.

Conclusion

The data collected highlights the critical role of digital marketing in small business survival and success in Canada, with high adoption rates and significant failure rates linked to poor execution. The preference for DFY services, evidenced by 20% exclusively outsourcing and additional hybrid approaches, aligns with Markage.ca’s strategic focus, offering a clear market opportunity to address small businesses’ digital marketing challenges through professional execution.

Key Citations: