Digital wave sweeps SMB sector: AI tools now used by 4 in 5 small businesses, reports Primus Partners
• 69% of SMBs in India already use digital advertising, and another 27% plan to adopt it within three years.
• 57% of businesses reported a doubling or tripling of revenue since adopting online advertising.
• Nearly 80% of SMBs now use AI-enabled advertising tools, but cost, skills, and ecosystem complexity remain hurdles.
National, 12th December 2025: Primus Partners unveiled 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 report underscores that digital advertising has become one of the most potent accelerators of small business growth, driving visibility, efficiency, and measurable returns at a scale previously inaccessible to smaller enterprises. The study shows that India’s SMB sector is undergoing a decisive shift embracing data-driven marketing, diversifying across platforms and formats, and increasingly adopting AI to optimise campaigns and reduce inefficiencies. Yet, even with this momentum, many small businesses continue to struggle with cost pressures, skill gaps, and the challenge of navigating an increasingly complex advertising ecosystem.
The findings reveal that SMBs are not only advertising more, they are advertising smarter. A majority use three to four platforms simultaneously, over 65% deploy multiple formats, and more than 90% actively monitor campaign performance using digital tools. As the digital marketplace grows more competitive, AI adoption has become nearly universal, with SMBs using intelligent tools for targeting, fraud detection, automation, and creative optimisation.
The study also highlights structural challenges that continue to restrain the full potential of SMBs. Limited budgets, absence of specialised talent, lack of IT infrastructure, and difficulty choosing the right mix of platforms and formats were cited as primary barriers. Over 70% of SMBs also expressed that the sheer variety of advertising options can be overwhelming, underscoring the need for simplified guidance and ecosystem support.
Commenting on the policy significance of the findings, 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.”
The report concludes that India’s SMBs are transitioning from digital adopters to digital leaders, but need a more supportive ecosystem to unlock their full potential. It calls for strengthened public–private collaboration, targeted digital skilling initiatives, responsible AI frameworks, and broader access to affordable tools that can help small businesses grow with confidence, resilience, and transparency.
About Primus Partners
Primus Partners is a leading advisory firm dedicated to providing strategic insights across policy, technology and economic sectors. Established by seasoned industry leaders with extensive experience in global organisations, the firm comprises a team of 300+ consultants and additional advisors. With a strong presence across multiple cities in 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.
