Generative AI (GenAI), despite having enormous potential for marketing, is under-utilized by businesses, as found in a 2023 McKinsey survey. The study discovered that only 10 to 14 percent of companies use GenAI in their marketing efforts. This indicates that businesses struggle to comprehend how this tool can significantly affect their sales workflow. Nonetheless, GenAI represents an outstanding opportunity for small to medium-sized businesses (SMBs) in formulating compelling and personalized campaigns, thus forming a deeper connection with key consumer cohorts while saving effort and time.
Nextdoor, for instance, currently launched an AI Assistant tool aimed at enabling small businesses to engage with around 85 million neighbors on its platform. This is seen as a crucial early step in onboarding SMBs to GenAI, allowing them to stay ahead of marketing trends and serving their communities effectively.
In particular, GenAI can assist advertisers in crafting message which align with the unique wants, needs, and priorities of the local communities. This allows marketers to target consumers most pertinent to them without spending on expensive market research. Additionally, the production of such targeted content not only enhances the relevancy of marketing efforts but also increases customer loyalty and engagement.
GenAI is also transforming the process of campaign development. Tools such as GenAI can level the playing field, helping small businesses with less substantial marketing teams to create impactful campaigns which deeply resonate with local audiences. Viewed as the future of marketing, this approach emphasizes developing hyperlocal and tailored campaigns as consumers are most responsive to messages that align with their local surroundings and interests.
That said, it is critical that small businesses adopt GenAI responsibly. This entails being transparent about its use, safeguarding user privacy, ensuring human oversight, and screening for biases. Nextdoor’s strategy of combining GenAI with deep local insights showcases how businesses can develop and effectively appeal to particular audiences with highly targeted marketing campaigns. In the marketing industry, embracing a community-focused strategy enhanced by GenAI is seen as a necessity rather than a trend. This approach is not just about creating effective campaigns, it is also about enriching the communities they target.
According to a 2023 Optimove survey, a majority of consumers (55%) view AI-driven marketing positively, appreciating its role in tailoring shopping experiences. GenAI is here, and it’s revolutionizing the marketing landscape in ways that specifically benefit SMBs.
Source: Businesses Are Underutilizing One Critical Tool That Could Propel Their Marketing Efforts.
