How SMEs Can Maximise Their Advertising Potential To Fuel Growth
The UK’s small businesses have ramped up their advertising efforts this year and are reaping the benefits as they aim to expand at home and internationally.
That’s according to new research by Amazon Ads, which reveals that nearly 9 out of 10 (86%) of small and medium-sized businesses (SMEs) find their current advertising strategies effective in acquiring new customers.
Additionally, over three-quarters (76%) have experienced growth within the UK with more than half (54%) reporting that their advertising efforts boosted international business in the past year.
This advertising success has led 44% of UK SMEs to increase their advertising budgets over the last 12 months, while 35% maintained their previous spending levels.
The main motivations for increasing ad spend were to raise awareness of new products or services (48%) and to enhance brand recognition (51%).
The Growing Investment in Advertising
The research, which surveyed over 300 UK SMEs, highlights the diverse and dynamic approaches these businesses are taking to maximise their advertising potential. The study’s findings demonstrate a clear commitment to leveraging advertising for growth.
Traditional methods like print media, radio, and television remain vital, particularly for local markets. However, there is a noticeable shift towards digital advertising, with 72% of SMEs using social media platforms, 68% investing in search engine marketing, and 54% in online display ads.
Effective Advertising Strategies
The research provides valuable insights into the strategies that are proving most effective for UK SMEs. A key takeaway is the importance of a multi-channel approach. Diversifying advertising efforts across multiple platforms ensures reaching potential customers wherever they are most active.
Personalisation is also crucial with 64% of SMEs using data-driven targeting to refine their ad campaigns, resulting in higher engagement rates and better return on investment. Storytelling in advertising is another significant factor, with 58% of SMEs reporting increased customer loyalty as a result.
Learning from Global Brands
Global brands provide valuable lessons in maximising advertising potential. For instance, Apple combines traditional and digital advertising with a focus on sleek, minimalist design and powerful messaging. Their campaigns, such as ‘Shot on iPhone’ leverage user-generated content to create an authentic and engaging brand narrative across TV, billboards, and social media.
Another example is Spotify, which excels in personalised advertising and data-driven insights. Spotify uses the vast amount of data it collects on user preferences to deliver highly targeted and relevant ads. Their ‘Wrapped’ campaign, which showcases individual users’ listening habits at the end of each year, is a brilliant example of personalisation and user engagement that sparks widespread sharing and organic promotion.
Likewise, Nike’s approach to advertising seamlessly integrates emotional storytelling with diverse media channels. Campaigns like ‘Just Do It’ and ‘Dream Crazy’ not only highlight their products but also connect deeply with audiences on social issues, fostering a strong brand identity and customer loyalty across TV, online platforms, and social media.
Maximising Advertising Potential
As UK SMEs continue to boost their advertising efforts to drive growth in the second half of 2024, there are several key strategies that can help maximise their advertising potential.
Embrace digital transformation: Prioritise digital channels to reach a broader audience as SMEs plan to increase their digital advertising spend
Leverage data and analytics: Utilise data to gain insights into customer behaviour and preferences given that SMEs have seen a positive impact on their advertising effectiveness
Focus on SEO: Optimise for local search to attract local, loyal customers
Invest in Content Marketing: Create valuable and engaging content to attract new customers and retain existing ones
Test and Iterate: Continuously test and optimise ad campaigns to improve performance, and repeat
UK SMEs have numerous opportunities to maximise their advertising potential. By embracing a multi-channel approach, leveraging data and personalisation, and focusing on compelling storytelling, these businesses can enhance their reach, engage their audience, and drive sustainable growth.
What’s clear is that the research serves as a valuable guide for SMEs looking to navigate the evolving advertising landscape and stay competitive in today’s market.
Further Reading / Sources
Meet your customers where they are Amazon Ads
Amazon Ads research shows UK SMBs leveraging advertising to grow NewDigitalAge
UK SMBs turn to performance channels to grow business PMW
Samsung UK
The technology giant often implements a range of live events to showcase its latest products. Samsung’s ‘Experience Innovation’ tour has travelled across major UK cities, allowing consumers to try out the latest Samsung devices in an interactive environment. To enhance these events, Samsung provide attendees with branded tech accessories, such as phone stands and screen cleaning kits, ensuring that participants leave with useful items that keep the Samsung brand visible in their daily lives.
Jaguar Land Rover
The automotive giant has been hosting lavish car launch events and driving experiences. The brand offers a series of off-road driving events across the UK, giving potential customers a hands-on experience with their vehicles’ capabilities. To complement these events, Jaguar Land Rover provide attendees with branded outdoor gear, such as rugged water bottles and adventure journals, reinforcing the brand’s association with exploration and durability.
Waitrose
The supermarket chain has embraced live events to enhance customer loyalty and engagement. Its ‘Taste of Waitrose’ food festivals held across various UK locations have featured cooking demonstrations by celebrity chefs, wine tasting sessions, and exclusive product samplings. As part of these events, Waitrose distribute branded aprons, recipe books, and reusable shopping bags, which serve both as functional items and as ongoing reminders of the high-quality products available at Waitrose stores.
John Lewis & Partners
The retailer has also successfully implemented a series of exclusive product launches and interactive workshops. For instance, its ‘Christmas Emporium’ events in 2023 allowed customers to experience and purchase festive products in a themed environment. As part of this programme, John Lewis distributed branded Christmas ornaments and Festive tote bags to attendees, enhancing the shopping experience and providing lasting mementos that keep the brand front of mind.
Future Outlook
According to the research, as businesses recognise the value of live events in driving engagement and fostering customer loyalty, the trend towards increased investment in this area is expected to rise.
The booming spend on event marketing is reflective of a broader shift towards experience-driven marketing strategies. As consumers increasingly seek out meaningful and engaging interactions with brands, businesses are responding by allocating more resources to events that deliver these experiences.
With the UK economy on the upswing and continuous advancements in event technology, businesses are well-positioned to leverage the power of live events to drive growth and deepen customer relationships in the years ahead.
Further Reading / Sources
Bellwether Report: Marketing budget growth cools in Q1, but remains strong amid positive 2024/25 outlook IPA Bellwether
