New Research: AIs Impact on SMB Marketing

In recent years, the adoption of Artificial Intelligence (AI) by Small and Medium-sized Businesses (SMBs) for marketing purposes has witnessed a remarkable upswing. 26% are currently using AI and 44% would like to start using AI in the next 12 months.

SMBs are increasingly recognizing the potential of AI-powered tools and solutions to revolutionize their marketing strategies. These businesses, which often operate with limited resources and tight budgets, are finding that AI can offer them a competitive edge by enabling more efficient and targeted marketing efforts.

In a new report, An AI Awakening: How Small Businesses are Using AI and Automation to Bolster Their Business, the research firm Ascend2 teamed with Constant Contact to explore how small businesses feel about AI and marketing automation and where they expect to see the biggest impact from these technologies. The survey was fielded in June 2023 and 486 small business owners and decision-makers participated in the survey.

Small businesses overwhelmingly agree that using AI and automation has helped them cut costs and improve efficiency. The more they use these technologies, the more valuable their capabilities become. Three key findings that signal that AI is here to stay are:

• Adoption of AI: 60% of small businesses that currently use AI or automation in their marketing say they have saved time and are working more efficiently.
• Investment in AI: 70% of small businesses would pay more for a marketing platform that gave them access to AI or automation tools.
• Benefits of AI: 33% of small businesses estimate they have saved more than 40 minutes per week on marketing by using AI or automation.

For SMBs, AI has the potential to help them with their greatest marketing and business challenges. The #1 challenge that is keeping the vast majority of SMB marketers up at night is attracting new customers.

Through AI-driven data analysis, SMBs can gain deep insights into customer preferences, behaviors, and purchasing patterns, allowing them to create highly personalized, targeted, and automated marketing campaigns. The combination of AI and automation technology is a powerful tool for SMBs. For example, AI-powered chatbots engage potential customers in real-time, addressing queries and guiding them through the buyer’s journey, enhancing customer experience and increasing the likelihood of conversions. Moreover, AI algorithms can identify potential leads from vast datasets, enabling SMBs to prioritize their outreach efforts and focus on prospects most likely to convert. By harnessing AI’s capabilities, businesses can craft compelling content, optimize advertising strategies, and deliver personalized experiences, ultimately captivating new customers and fostering lasting brand connections.

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Where are SMBs putting AI to use? Social media, content creation (writing or images), and in their email campaigns. These areas are also among the easiest to implement AI into according to those surveyed.

Despite the evident benefits, the adoption of AI in SMB marketing is not without its challenges. Many SMBs face barriers such as limited awareness about AI’s potential, concerns about implementation complexity, data security, the expense of technology, and uncertainty about the return on investment. Here are the top concerns of SMBs.

However, as the AI landscape continues to evolve and offer increasingly user-friendly solutions, these barriers are gradually diminishing. Plus, the benefits of time and money saved cannot be ignored. SMBs who use AI in multiple areas of their marketing see increased cost savings. Nearly half (43%) of SMBs using AI in four or more areas of their marketing expect to save at least $5,000 in the coming year (almost 15% more than those who use it in two more areas).

What is next for AI and SMBs? The research shows that AI and marketing automation can help solve some of the biggest challenges small businesses face – attracting new customers, marketing to them, and delivering a memorable experience. Small businesses recognize this opportunity, and many have already begun leveraging it to tell better stories, sell smarter, and work more efficiently. Best of all, they are spending less time marketing and more time doing what they do best… running their business.

 

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