Australian SMBs embrace AI for advertising despite key challenges

Australian small and medium-sized businesses are increasingly turning to artificial intelligence tools for advertising but continue to face notable implementation challenges.

Research commissioned by Amazon Ads indicates that 87% of marketing leaders in Australian SMBs believe AI advertising tools will support business growth by allowing teams to allocate more time to strategic priorities. The findings, drawn from a survey of 200 Australian business-to-consumer marketing decision-makers, show broad confidence in AI’s business potential, though the adoption journey is not without complexity.

Adoption and challenges

The survey reveals that nearly three-quarters (72%) of SMBs are already using or actively trialling AI in their advertising efforts. However, the proliferation of available software has led to a sense of overload; 45% of respondents reported feeling overwhelmed by the sheer number of AI advertising tools in the market, and half confessed they do not know where to start with implementation.

Despite these obstacles, SMBs remain optimistic. On average, marketing leaders estimate they could save approximately 7.3 hours per week, equating to about 45 working days each year, through the use of AI-driven advertising tools. SMBs plan to reinvest this time in business development, with 28% aiming to increase focus on sales, 28% looking to upskill their teams, and another 28% intending to explore new market opportunities.

Cost efficiencies and operational improvements

SMBs anticipate that AI-enabled efficiencies will reduce advertising costs by 27% over the coming year. These predicted savings are attributed to several factors: less time spent analysing campaign data (39%), more accurate performance predictions (25%), improved reporting and optimisation (28%), and enhanced media planning (31%).

The introduction of AI tools such as automated visual asset creation (13%), advanced forecasting (9%), and automated ad copywriting (8%) is already enabling businesses to implement capabilities previously reserved for larger enterprises.

Looking ahead, SMBs expect AI to deliver further advantages, including better audience reach (44%), faster creative content generation (39%), and increased automation of repetitive operational tasks within the advertising process (30%).

Confidence and knowledge gaps

Despite broad usage and positive outlooks, ambiguity regarding AI remains for many SMBs. Some 50% of marketing leaders indicated they are excited about the possibilities of AI in advertising but uncertain about how to begin implementing relevant tools. Furthermore, 44% admitted to a lack of confidence in their expertise, stating they sometimes feel they are “faking it” when using AI-driven platforms. This highlights a need for more accessible and user-friendly solutions that require less technical understanding.

Balancing automation with human input

Australian SMBs also expressed clear preferences about the role of human judgement in advertising. Retaining control over key elements remains a priority, with 38% wanting to maintain the final say in creative decisions, 32% controlling budget allocations, and 31% ensuring cultural and emotional aspects are properly understood in campaigns. This points to an approach where AI is valued as an assistant and not as a replacement for human expertise.

“For SMBs, time is a precious resource – every hour saved is time that can be spent growing the business or serving customers better,” said Willie Pang, General Manager Australia, Amazon Ads. “That’s why we’ve built AI capabilities into familiar tools to make the process simple and effective. Our AI-powered tools such as Image Generator and Video Builder help businesses easily produce standout ads, letting them get back to what they do best: building their business.”

These findings are based on research conducted by Opinium for Amazon Ads, sampling a cross-section of 200 B2C marketing decision-makers in Australia from a range of sectors including goods manufacturing, commerce, retail, education, and culture, and are part of a broader international study covering 4,100 respondents across 14 countries.