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Large companies in every sector are rushing to adopt Generative AI (GenAI), but it’s small businesses that will make big leaps with the introduction of this amazing technology, especially in their marketing strategies. Despite the technology’s widespread presence in the news, a 2023 McKinsey study found that only 10% to 14% of companies are using GenAI in their marketing efforts, a sign that businesses of all sizes are struggling to imagine how the technology can have immediate impact on their sales workflow. Yet GenAI provides a unique opportunity for SMBs to create personalized and impactful campaigns.
The technology has enormous potential to create highly personalized ads that create deeper connections with important consumer cohorts while saving time and effort. As Nextdoor’s CMO, we recently launched an AI Assistant tool aimed at empowering small businesses to connect with approximately — 85 million neighbors on the platform. Our team sees this as an important first step in getting SMEs, the beating heart of our neighborhoods, into the technology so they can become early adopters of GenAI to future-proof their businesses, stay ahead of marketing trends and to continue to serve their communities to the best of their ability.
Related: How Generative AI Will Revolutionize Your Brand’s Future
Unleashing creativity and connection for SMBs with GenAI
GenAI can help advertisers create messages that engage with the distinctive wants, needs and priorities of local communities. This approach enables marketers to effectively reach the consumers most relevant to them without the need for expensive market research. Being able to create such targeted content not only increases the relevance of marketing efforts, but also significantly increases customer engagement and loyalty.
The power of GenAI to create highly personalized campaigns is transforming the advertising landscape and creating new benefits for early adopters. Many platforms, including Nextdoor, use this technology to allow advertisers to reach meaningful communities with quality content. A 2023 Optimove survey reflects this shift, showing that a majority of consumers (55%) view AI-driven marketing positively, appreciating its role in adapting shopping. This trend highlights the potential for businesses to engage with consumers in new ways.
Improving the efficiency and reach of small businesses
GenAI is revolutionizing the way marketers approach campaign development – a huge asset to SMBs that devote most of their resources to other aspects of business. By automating and optimizing the marketing process, these marketers are able to work smarter, not harder. A Harvard Business School study showed that AI assistance led to a 12.2% increase in task completion and 25.1% faster completion. For SMBs, integrating GenAI with hyper-local insights from their community further enhances the impact of these campaigns, enabling more granular targeting of specific user groups.
This change is especially helpful for small businesses, which often don’t have extensive marketing teams. GenAI tools, when used correctly, can level the playing field, providing the means to create high-impact campaigns that resonate deeply with local audiences. The future of marketing lies in developing hyper-local and personalized campaigns, as consumers are most responsive to messages that align with their environment and interests.
Related: How Generative AI is fueling the rise of fake news and online fraud
The responsible future of GenAI in marketing
As we look forward, it is critical for small businesses to embrace GenAI responsibly. That means being transparent about its use, protecting user privacy, ensuring human oversight, and checking for bias. Nextdoor’s approach to integrating GenAI, combined with its deep local insights, illustrates how businesses can develop detailed marketing campaigns that effectively appeal to specific audiences.
For the marketing industry, adopting a community-focused strategy enhanced by GenAI is not just a trend, but a necessity. It’s about creating campaigns that are not only effective, but enrich the communities they target. The era of GenAI-powered marketing is here, and it’s transforming the landscape in ways that are especially beneficial to SMBs.
