Unlocking Opportunities for Small Businesses: AI’s Growing Role in Driving Value in Online Advertising
Small business owners face new challenges every day. Between competing with larger companies, battling economic uncertainty, and finding new ways to grow, business leaders must continuously pivot and adjust to come out ahead. Many small businesses find success by leveraging free and low-cost digital tools like online marketplaces, advertising, and, more recently, artificial intelligence (AI). AI tools can help small businesses operate more efficiently, giving them the competitive edge needed to grow and succeed in today’s economy.
A new report led by the Connected Commerce Council and Advertiser Perceptions, which surveyed 1,200 US small and medium-sized businesses (SMBs), shows that SMBs are quickly adapting and are already using AI to make their digital ads more effective, drive better returns on investment, and make more money. Many expect to see more benefits in the future.
As Congress and state legislatures grapple with how to regulate AI, SMBs need lawmakers to better understand the technology’s uses and benefits. AI legislation must mitigate risk and protect consumers while also encouraging innovation, growth, and adoption.
Key Findings:
Value of Digital Advertising to SMBs:
- 69% of SMBs use digital ads to find new customers.
- 82% of SMBs can directly attribute 2023 revenue growth to personalized ads.
- Most (59%) SMBs say that digital ads deliver better ROI than linear TV, radio, print, and out-of-home ads.
SMBs Believe AI Has Great Marketing Potential:
- 95% of SMBs think AI will help them improve their ad campaigns.
- 83% of SMBs already use AI in their digital advertising.
- 46% of SMBs expect AI to boost marketing efficiency, leading to improved ad campaigns.
- 43% of SMBs expect AI to reduce their overall marketing costs.
- 45% of SMBs expect AI to help them save money on ad creative.
Methodology:
In partnership with the Connected Commerce Council and Google, Advertiser Perceptions surveyed 1,200 US small and medium-sized businesses (SMBs) in March–April 2024.
