Management of Digital Advertising Budgets and Return on Investment in Nigerian SMEs

This study examines how Nigerian small and medium enterprises (SMEs) manage digital advertising budgets and measure return on investment (ROI) from digital campaigns, with evidence drawn from SMEs operating in Edo State, South South Nigeria, and Enugu State, South East Nigeria. Digital advertising has democratised marketing access for SMEs, enabling cost-effective targeted campaigns through platforms including Meta, Google Ads, and TikTok. However, the absence of structured budget management frameworks and measurement capabilities among many Nigerian SMEs limits their ability to optimise digital spending. The research employs a descriptive survey design with 150 SME owners and digital marketing managers participating through structured questionnaires and short interviews. Questionnaire data are analysed using descriptive statistics, while interview responses are coded thematically. The study evaluates digital budget planning processes, platform allocation decisions, performance tracking practices, and ROI estimation accuracy. Preliminary findings suggest that most SMEs operate reactive rather than strategic digital budgets, with spending decisions driven by available cash rather than performance data. ROI measurement is largely impressionistic, with few firms using platform analytics or attribution modelling systematically. Recommendations address SME owners, digital marketing practitioners, and SME development agencies on building digital budget management competencies that improve advertising ROI. Keywords: digital advertising, budget management, return on investment, SMEs, South Nigeria