Amazon Ads SMB Research | 72% of India SMBs currently invest in advertising

As Indian SMBs seek to grow both domestically and globally, Amazon Ads recently carried out research to learn more about the marketing decision-makers from roughly 300 business-to-consumer small and medium-sized enterprises and how they are profiting from advertising’s beneficial effects. According to the study,

  • 85% of SMBs, or nearly nine out of ten, claimed that their current advertising strategy is effective at bringing in new clients. 
  • 78% said advertising aided in the expansion of their business in India. 
  • In the past year, over two-thirds (69%) claimed that advertising played a role in their company’s international expansion. 

Key highlights of the report

According to the e-commerce major’s ad vertical, 

  • 72% of SMBs in India currently invest in advertising, while 28% do not spend any money on it at all. 
  • Due to their increased confidence in advertising, 56% of India’s SMBs increased their advertising budget in the previous year, while 22% remained constant from year to year. 
  • Increasing consumer awareness of their brand (50%) or raising awareness of a new product or service (42%) are the two most frequent reasons for this increase in spending. 
  • In the coming year, over one-third (36%) of the respondents indicated they intended to spend money on streaming TV advertising.

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Challenges:

Even though some have found success, not all SMBs believe advertising is necessary for their company to expand. Currently, 28% of SMBs in India do not make any kind of advertising expenditure. The most frequent explanation given for this was that it is too costly (26%) while a comparable percentage (20%) claimed they haven’t seen a return on prior investments (ROI).

About a third (36%) of respondents stated that the hardest thing their company faces when it comes to effectively advertising is producing compelling content, while three out of ten (30%) said that knowing where to allocate their advertising budgets to meet their objectives is the biggest challenge they face. 

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Considering the future:

Over two-thirds (67%) of SMBs based in India stated they believe artificial intelligence (AI) will improve the performance of their advertising campaigns, demonstrating a strong belief in the power of technology to improve the impact of advertising and help them solve current problems. Because of this, nearly three out of ten (30%) of the sampled individuals are now teaching their teams how to use AI technology for advertising. 

Working with Opinium, a market research firm, Amazon Ads conducted a survey of 4,135 B2C marketing decision-makers at small and medium-sized businesses (SMBs) across India, the UK, China, France, Germany, Italy, Japan, MENA, Spain, Brazil, Mexico, USA, Canada, and Australia. This is not a sample of Amazon sellers; rather, it is a nationally representative sample. The information was gathered from February 29, 2024, to March 20, 2024. 

Here’s what they said

Kapil Sharma, director, growth customer sales, Amazon Ads India said, 

At Amazon Ads, we aim to provide SMBs with solutions and insights to make advertising as simple as possible. With the help of our self-service advertising tools and learning console, we have helped SMBs achieve a variety of business goals, including raising brand awareness, increasing sales and boosting customer loyalty. With low cost of entry and closed-loop measurement, Amazon Ads helps SMBs across categories to promote their products to relevant audiences across India.

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About Netra

Netra is a Dual Masters graduate in International Business and Marketing. She is a content-writing enthusiast and a social media addict. In her downtime, you will find her headbanging to Pop songs from around the world. She is also a sports fanatic and especially loves F1, Volleyball, and Cricket. Her hobbies are baking and watching Anime.

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