Small and medium-sized businesses (SMEs) are in a privileged position thanks to technological advances and digital strategies. Taking advantage of the fact that this coming June 27, Small and Medium Enterprises Day is celebrated, it is the ideal time to reflect on how these organizations, which represent 99% of the Spanish business fabric, are taking advantage of artificial intelligence, digital marketing and online advertising to transform your operations and maximize your opportunities for success.
The emergence of the Internet was the starting point as a catalyst for SMEs
Before the digital explosion, SMEs faced numerous limitations that hindered their competitiveness and growth. Technological barriers were high and access to advanced tools, such as artificial intelligence and digital marketing, was almost exclusively reserved for large corporations with significant resources. Traditional advertising was expensive and limited in reach, restricting expansion into broader markets. Market research and access to accurate data to make strategic decisions were tedious and expensive processes. However, today, digitalization has leveled the playing field, allowing SMEs to access advanced technologies, affordable online advertising platforms and data analysis tools that optimize their business operations and strategies. This transformation has eliminated many of the barriers that previously held back their development, giving them unprecedented agility and capacity for innovation.
The accessibility of advanced technologies and the growing offer of specific solutions for SMEs by technology providers have facilitated this transition. Cloud solutions, for example, have eliminated the need for large investments in hardware and software, allowing SMEs to access the same tools and platforms used by large corporations. But this digital transformation has not only changed the way SMEs operate, it has also altered the competitive landscape. SMEs that adopt new technologies and digital strategies can not only survive, but also thrive in an increasingly globalized and competitive environment.
The ability to innovate quickly, adapt to changing market demands and deliver personalized customer experiences are key factors that will determine the success of SMEs in the future. New consumers expect personalized experiences and
omnichannel. SMEs can and should adopt new technologies to meet these expectations and stay competitive. Tools like data analytics and automated marketing enable SMBs to deliver consistent, personalized customer experiences across all touchpoints.
The new era of AI within the reach of SMEs
The artificial intelligence It has ceased to be a technology exclusive to large technology companies and has become an accessible and affordable tool for SMEs. In Spain, 33% of SMEs already use AI-based tools, and this percentage is expected to increase to 60% in the next three years. AI allows SMEs to automate processes, improve operational efficiency and offer more personalized experiences to their customers. From chatbots that answer customer queries in real time to algorithms that optimize the supply chain, AI is revolutionizing the way SMEs operate and interact with their environment.
Marketing has never been as accessible as it is now for SMEs
Spanish SMEs invest a total of 1,180 million euros in digital marketing in 2023. Investment in digital marketing by SMEs is expected to continue growing in the coming years, reaching 1,350 million euros in 2024.
Currently, digital marketing has established itself as one of the great pillars for SMEs. Unlike traditional advertising, digital marketing offers a series of benefits that are especially attractive to SMEs. Not only is it more profitable, with a 50% reduced cost compared to traditional advertising, but it also allows for precise segmentation of the target audience, something that was unthinkable just a few decades ago. In fact, data shows that SMEs that employ digital marketing strategies are 60% more likely to survive in the market, since they can reach a global audience and accurately measure the return on investment of their campaigns. For its part, online advertising has allowed SMEs to expand their reach significantly. Through platforms such as Google Ads, Facebook Ads or LinkedIn, SMEs can now target specific market segments with personalized and effective ads. This ability to reach a global audience on a limited budget has leveled the playing field, allowing SMEs to compete head-to-head with much larger companies. In addition, online advertising offers flexibility and adaptability that can be crucial.
E-commerce, the other way to sell
The rise of e-commerce has been another key factor that has greatly benefited SMEs. Globalization and electronic commerce have increased competition, but they have also opened new opportunities for SMEs. Now, a small local business can sell its products and services internationally with relative ease. Platforms such as Amazon, eBay or Shopify have simplified the online sales process, allowing SMEs to access global markets without the need for large investments in infrastructure. In fact, Spanish SMEs generated more than €20,492 million in e-commerce revenue in the second quarter of 2023, which represents an increase of 12.7% compared to the same period of the previous year. Currently, 51% of SMEs in Spain make online sales, and 21% of these companies began operating in the digital field during the pandemic.
What no one doubts is that it has never been easier for SMEs to take advantage of the opportunities offered by AI, digital marketing and online advertising. The democratization of technology, access to global information and resources, and a renewed focus on efficiency and innovation have created an environment where SMEs have more tools than ever to succeed.
