The Impact of Artificial Intelligence in Shaping Advertising Strategies for SMEs: Transforming SME Advertising Strategies

Abstract:

Today, digital advancements in business challenge SMEs to reach and engage with their target audiences through advertising. Traditional advertising strategies require modification, as consumer behaviors are changing. Therefore, they view ads differently on various platforms. Nevertheless, Artificial intelligence gained wide opportunities in various industries, and marketing is no exception. The research aimed to explore Artificial Intelligence's role in modifying SMEs' advertising campaigns and strategies. The author used quantitative research. A survey study was developed based on a systematic literature review. The questionnaire was distributed using snowball and conventional sampling methods to a diverse sample of SMEs across social media platforms such as Facebook, LinkedIn, Instagram, and X. The author used the Technology Acceptance Model (TAM) as a theoretical framework. According to the TAM model, users' acceptance and adoption of technology are influenced by perceived usefulness (PU) and perceived ease of use (PEOU). Perceived usefulness would compare to SMEs' beliefs about the effectiveness and benefits of AI in improving advertising methods. Perceived ease of use would correlate to SMEs' perceptions of the ease with which practitioners can combine and use AI tools within their existing advertising campaigns. The research findings underline empirical evidence of the significance of Artificial intelligence in advertising strategies for SMEs. These research insights offer SMEs actionable recommendations for effectively using AI to enhance their advertising strategies, gain a competitive advantage, and gain sustainable growth in the digital landscape.