EMDG definition of expanding export promotion activity

This page explains what we mean by ‘expanding’ for the purposes of Export Market Development Grants (EMDG). This is to help you know if you are eligible to apply.

EMDG are available in 3 tiers for eligible Australian small to medium enterprise businesses.

Requirements

Expanding is a requirement for all tier 2 and tier 3 applicants. You must show you are seeking to expand export promotion activity in your plan to market. You must also be able to demonstrate if required.

Two examples of businesses expanding export promotion activity

Example 1

A manufacturer of Australian made tea spent about $300k over 3 years on Google Adwords. This was to promote various sales campaigns of their tea in the UK market. The campaign was a success in generating export sales.   

The manufacturer’s expansion plan is to increase advertising on Google Adwords in the UK market. They plan to increase to spend to $150k each year for the next 3 years. This extra spend will allow the business to target a larger audience than before. This is because more customers in the UK will view their Google advertisement. This change in the type of promotional activity satisfies the need for a planned expansion of promotional activities.

Example 2

A tourism operator who delivers day tours of Australia’s coastline received 3 previous EMDG grants. The business spent $200,000 on online marketing in South East Asia over 3 years. This included:

  • $100,000 in the 2018–19 financial year ($25,000 each on Facebook, Google AdWords, LinkedIn, and Instagram)
  • $100,000 in the 2019–20 financial year ($25,000 each on Facebook, Google AdWords, LinkedIn, and Instagram).

Note: There was no online marketing spend in the 2020-21 financial year though the tour operator did generate some export business.

The business had the most success with Facebook advertising. As borders reopen after COVID, they believe they can reach more customers. The business will use Facebook advertising alone for the same spend. They will not use Google Adwords, LinkedIn, or Instagram.

Over the next 3 years the business plans to spend $200,000 on Facebook advertising. This includes:

  • $60,000 in the 2021–22 financial year
  • $70,000 in the 2022–23 financial year
  • $70,000 in the 2023–24 financial year.

This change in the type of promotional activity satisfies the need for a planned expansion of promotional activities.

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