New research into SMEs conducted by professional social networking platform LinkedIn reveals that despite economic uncertainty, Australian SMEs remain optimistic about marketing and are committed to their marketing budgets.
In fact, only five per cent of SMEs surveyed plan to reduce their marketing budgets in the next 12 months. And, on average, SMEs are allocating an average of 23.5 per cent of their annual business revenue for their marketing efforts.
The research also notes that the top priorities of businesses are to expand their customer base (40 per cent), nurture existing customer relationships (39 per cent), build brand loyalty and increase business revenue and market share (30 per cent respectively). To achieve this, 71 per cent of SMEs said they have started and/or will continue to invest in new technologies such as AI.
In relation to this, many SMEs are looking to innovate and automate for them to survive and thrive. At the moment though, only 29 per cent have managed to implement new creative solutions or technology in their marketing strategy while 71 per cent admit they are facing challenges such as a lack of creative talent and knowledge within their businesses (21 per cent), finding a balance with solutions for existing audiences and new audiences (21 per cent), and uncertainty about deploying long term creativity (20 per cent).
“To ensure long-term growth, particularly during economic change, we know continued brand building and harnessing creativity is vital for small business marketers,” Director of LinkedIn Marketing Services, Amy Mills, said. “Smart business owners will use this moment to their advantage and harness the power of creativity, as well as automation and marketing AI tools, during these challenging times and show how they are adding value to customers. Tapping into creativity can help extend the reach of limited budgets and help business owners reap the rewards.”
Despite business challenges, the report underscored that SMEs firmly believe in brand building and connecting with customers through marketing, indicating that they’re playing the long game. In fact, 88 per cent are confident their business has successfully built brand awareness through their marketing and referrals. SMEs are smartly leveraging technology and timely innovations in generative AI to get ahead and weather economic uncertainty. Furthermore, 23 per cent 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 spend during a downturn.
The report also reveals that 71 per cent are investing in areas such as marketing automation, AI and online communities as part of their budget, with 69 per cent of them agreeing that ChatGPT could help their business with marketing. However, some SMEs are found not investing in marketing-tech tools likely due to unfamiliarity with ChatGPT / AI, 76 per cent of whom said they need to learn more about the product.
Discussing the rise in SMEs using marketing automation, Mills added, “It’s no secret that SMEs are time poor and manage conflicting priorities to keep their business afloat. Fortunately, with the help of AI, businesses can effectively deploy creative marketing, optimise ROIs, and meet preferred objectives, while freeing up staff for tasks that require higher level thinking and capabilities.”
