Digital Surge: How India's SMBs Are Transforming Advertising Landscape

Amidst India's expanding online advertising domain, 80% of SMBs prioritize digital ads, with 42% funneling substantial marketing budgets into them. The report highlights a trend towards personalized advertising and multiple platform usage, bolstered by AI technology, targeting untapped city markets and optimizing campaign engagement and ROI.

India's buoyant digital advertising market is evolving, with approximately 80% of Small and Medium Businesses (SMBs) heavily relying on online platforms for advertising, a trend detailed in a recent Primus Partners report. Notably, 42% of these businesses are channeling over 40% of their marketing budgets into online advertisements.

Emerging trends in SMB strategies include the endorsement of personalized ads by 74% of participants, recognizing their contribution to achieving business goals. Furthermore, nearly 70% of SMBs are diversifying by using more than two advertising platforms. In harnessing the reach of regional languages and platforms like ShareChat and YouTube, these businesses are exploring new opportunities in Tier 2 and 3 cities to expand their market presence.

The adoption of AI-driven targeting, big data analytics, and the popularity of short-form video content on social media and OTT platforms are revolutionizing ad campaigns, enhancing engagement, ROI, and lead generation. The report highlights that 49% of SMBs prefer platforms that guarantee Return on Investment (RoI), with geographical reach also being a significant factor for 47% of them.

Synchronized with periods of high ROI, such as festivals and sales, SMBs opt for moderate ad frequencies, balancing cost efficiency and audience interaction. High-frequency campaigns are particularly prevalent in the e-commerce sector, where consistent consumer engagement is essential.

Ramakrishnan M, Managing Director of Primus Partners, emphasized the economic impact of MSMEs and startups, which constitute 30% of India's GDP. He advocates digital tools and policy reforms to enhance their advertising efficiency. He also calls for government-industry partnerships to provide affordable online advertising solutions and a transparent regulatory environment to foster innovation.

(With inputs from agencies.)