- 69% of India’s SMBs have already adopted digital advertising, with another 27% planning to do so within the next three years.
- 57% of businesses reported doubling or even tripling their revenues after shifting to online advertising.
- Close to 80% of SMBs now leverage AI‑enabled advertising tools, though challenges around cost, skills, and ecosystem complexity persist.
National | 12 December 2025: Primus Partners has released its latest report, “Empowering Small Businesses through Digital Advertising,” a comprehensive study based on a survey of over 1,000 MSMEs and startups across India. The findings reveal a decisive digital shift sweeping through India’s small business ecosystem, with AI‑enabled advertising tools, multi‑platform marketing, and data‑driven decision‑making becoming mainstream.
The report highlights that nearly 80% of SMBs now use AI‑powered advertising tools, marking one of the fastest adoption curves in India’s digital economy. While digital advertising has emerged as a powerful equaliser for small businesses, the study also underscores persistent challenges around cost, skills, and ecosystem complexity.
Digital Advertising Becomes a Growth Engine for SMBs
The study shows that 69% of SMBs already use digital advertising, and another 27% plan to adopt it within the next three years, signalling near‑universal adoption in the near future.
Key insights include:
- 57% of SMBs reported doubling or tripling their revenue after adopting online advertising
- A majority now use three to four platforms simultaneously
- Over 65% deploy multiple ad formats
- More than 90% actively track campaign performance using digital tools
This shift reflects a growing maturity among small businesses, who are not just advertising more — they are advertising smarter.
AI Adoption Reaches Critical Mass
AI‑enabled tools have become central to SMB advertising strategies, supporting:
- Precision targeting
- Fraud detection
- Automated optimisation
- Creative generation and testing
- Budget efficiency
With 4 in 5 SMBs now using AI‑powered tools, India’s small business sector is transitioning from digital adoption to digital leadership.
Structural Challenges Still Limit Full Potential
Despite strong momentum, the report identifies several barriers that continue to constrain SMB growth:
- Limited budgets and rising advertising costs
- Shortage of specialised digital talent
- Lack of IT infrastructure
- Difficulty choosing the right mix of platforms and formats
- Overwhelming ecosystem complexity — cited by 70% of SMBs
These challenges highlight the need for simplified, affordable, and trustworthy digital pathways.
Sunita Mohanty, Managing Director, Primus Partners, said: “India’s economy depends deeply on the vitality of its small businesses, and this report shows how digital advertising is becoming a key equaliser allowing them to compete with larger players and participate more meaningfully in national and global markets. What is remarkable is not just the high adoption rate, but the tangible impact: from doubling revenues to expanding across India and even reaching export markets. At the same time, small businesses are telling us clearly that they need simpler, more affordable, and more trustworthy digital pathways. This report is our effort to ensure their voices shape the next phase of India’s digital economy.”
A Call for Strengthened Ecosystem Support
The report concludes that India’s SMBs are evolving from digital adopters to digital leaders, but require:
- Stronger public–private collaboration
- Targeted digital‑skilling initiatives
- Responsible AI frameworks
- Wider access to affordable, easy‑to‑use tools
These steps are essential to help small businesses grow with confidence, resilience, and transparency.
About Primus Partners
Primus Partners is a leading advisory firm offering strategic insights across policy, technology, and economic sectors. Founded by seasoned industry leaders, the firm comprises 300+ consultants and advisors and has a strong presence across India, Dubai, the UAE, KSA, and the USA. Primus Partners has successfully executed projects across Africa, Asia‑Pacific, and the Americas. For more information visit www.primuspartners.in
