Professional network LinkedIn conducted a new research into small and medium sized businesses (SMBs) where the outcome went on to reveal that despite the economic upheaval, Indian SMBs remain optimistic about the value of marketing.
With the average yearly marketing investment in Indian SMBs currently sitting at slightly more than one quarter (26.1 percent) of annual business revenue, only a small three percent of SMBs plan to reduce their marketing budgets in the next 12 months.
This reflects the overall confidence among SMBs in India, who view marketing as a crucial tool for business growth and are willing to maintain or even increase their marketing budgets to drive revenue and remain competitive in the market.
Looking ahead in 2023, some of the top priorities of businesses are to expand their customer base by 44 percent, increase business revenue and market share by 43 percent and build brand loyalty by 36 percent. To achieve this, 90 percent have started and or will continue to invest in new technologies such as artificial intelligence (AI) as part of their marketing strategy.
SMBs tapping into creative opportunities to build brand equity and awareness
Despite dynamic economic conditions, many SMBs are optimistic and looking to innovate and automate within their businesses. However a large cohort by 91 percent say they face challenges when it comes to creative marketing solutions.
Top challenges include finding a balance with solutions for existing audiences and new audiences (41 percent), remaining creative with rapidly evolving tools (39 percent), a lack of creative talent and knowledge within their businesses (30 percent), and uncertainty about deploying long term creativity (28 percent).
Forty one percent SMBs are implementing new creative solutions or technology in their marketing strategy moving forward due to the economic downturn or changing budgets, it’s clear that there is an appetite to explore new ways to connect with customers.
Considering the broader benefits of creativity, Ashutosh Gupta, country manager – India, LinkedIn, says, “Building memorable brands and harnessing creativity is critical for small business marketers, particularly in these challenging conditions.”
Further, he adds, “With India’s SMB sector expanding rapidly, small businesses must effectively balance short-term activations with long-term brand building solutions to differentiate themselves from competitors and achieve sustainable growth. Business owners who smartly leverage creativity, AI, and automation will be able to do more with less budgets and create true value for their customers.”
Despite business challenges, SMBs firmly believe in brand building and connecting with customers through marketing, indicating that they are playing the long game. In fact, 94 percent are confident their business has successfully built brand awareness through their marketing and referrals. SMBs are smartly leveraging technology and timely innovations in generative AI to get ahead and weather the economic uncertainty.
To ensure they come out of this moment positively, 35 percent believe that leaning into marketing is smart, as they feel companies that recover faster following periods of economic uncertainty are the ones that maintained or increased their spending during a downturn.
Indian SMBs bank on AI technologies to advance business priorities
The research found that most SMBs are looking at ways to innovate for the future, particularly through the use of marketing-tech tools. More specifically, 90 percent are investing in areas such as marketing automation, AI and online communities as part of their budget, with over nine in ten 93 percent agreeing that ChatGPT could help their business with marketing.
However, some SMBs are found not investing in marketing-tech tools likely due to unfamiliarity with ChatGPT or AI, 42 percent of whom said they need to learn more about the product.
Discussing the rise in SMBs using marketing automation, Gupta mentions, “Time is a precious resource for SMBs. Small business staff often have to juggle multiple demands, which leaves little time for strategic tasks and thinking. With AI and automation tools, businesses can free up staff time for higher-level work, deploy creative marketing strategies, optimise ROIs, and meet business objectives effectively.”
Helping SMBs build their brands with Quick Mode for Campaign Manager
SMB marketers are expected to take on more responsibilities with fewer resources and spread their expertise across broad workstreams. With limited time, learning new tools can be a challenge. To make it easier for new SMB advertisers to easily create and launch their first advertising campaigns on LinkedIn, the platform has introduced Quick Mode, a simplified way to build campaigns within Campaign Manager.
The feature makes it easier than ever for new users to create and run advertising campaigns on LinkedIn, reducing the barrier to entry and enabling them to focus on higher value work like reaching the right audiences and building their brands.
Instead of needing to figure things out for themselves, SMBs can use Quick Mode to achieve their brand building goals more efficiently and with more confidence. This means that they can spend more time on other areas of the business.