Blab Tech
AI Tools Drive New Advertising Opportunities for Indian SMBs, Study Finds
A fresh study commissioned by Amazon Ads and carried out by research firm Opinium reveals that artificial‑intelligence (AI) advertising tools are unlocking doors for small and medium businesses (SMBs) in India, helping them reach audiences that once seemed beyond their reach.
The survey, which captured responses from 300 B2C marketing decision‑makers in Indian SMBs between April 7 and April 23, 2026, found that nearly nine in ten respondents said AI‑powered tools had opened new channels, audiences, or formats that had previously felt out of reach. Streaming television emerged as the most frequently cited new channel—an arena once dismissed as too costly or complex for small advertisers.
Three‑quarters of the SMBs reported that AI‑enabled advertising had supported business growth, and 68 % said that simplified tools had empowered them to be more creative with their advertising. The study also highlighted that AI is being used not only to create advertising assets—including streaming ads—but also to optimise campaigns more quickly, identify customers faster, and level the playing field against larger brands with heftier advertising budgets.
Amazon’s own advertising platform has seen a rapid rise in AI adoption. The share of Amazon advertisers in India using AI‑powered tools grew 77 % year over year, and SMBs generated 62 % more ad creatives in the first quarter of 2026 than they did in the same period a year earlier.
Streaming TV has moved from a niche to a viable option for smaller advertisers. Three years ago, high costs, minimum spend requirements and the complexity of planning and buying were cited as the main barriers. Today, SMBs view the medium as a way to reach new audiences, build brand awareness and strengthen credibility.
The shift extends beyond domestic borders. More than half of Indian SMBs that considered cross‑border advertising inaccessible three years ago now say it is more accessible. Amazon’s Seller Assistant, an AI‑powered expansion guidance tool, supplies product recommendations, market‑demand insights and country‑specific compliance support, helping businesses identify international growth opportunities.
Despite the growing use of AI, human judgement remains central. Business owners are still the most common final decision‑makers, while fully automated advertising decisions without human review remain rare.
Looking ahead, 92 % of Indian SMBs surveyed said AI would be important to their future competitiveness. Companies are increasingly looking to the technology not only for content creation but also for strategic planning and competitor analysis.
The study’s findings arrive as Amazon Ads expands its AI capabilities across its advertising ecosystem. While Amazon has not announced new product launches specifically for SMBs beyond the Seller Assistant, the rapid growth in AI tool usage suggests that the company is likely to continue investing in AI‑driven advertising solutions.
No regulatory actions or court proceedings related to the study were reported. The research does not indicate any forthcoming earnings reports or funding developments tied to the findings. What remains uncertain is how quickly the broader SMB community will adopt these tools and whether the benefits observed in the sample will translate into sustained growth across the sector.
In short, AI advertising tools are already proving to be a catalyst for Indian SMBs, enabling them to reach new audiences, experiment with formats such as streaming TV, and compete more effectively with larger brands. The pace of adoption is accelerating, and the next few months will likely see further expansion of AI‑powered advertising solutions from Amazon and other platforms, though the long‑term impact on the SMB advertising landscape remains to be seen.
The survey, which captured responses from 300 B2C marketing decision‑makers in Indian SMBs between April 7 and April 23, 2026, found that nearly nine in ten respondents said AI‑powered tools had opened new channels, audiences, or formats that had previously felt out of reach. Streaming television emerged as the most frequently cited new channel—an arena once dismissed as too costly or complex for small advertisers.
Three‑quarters of the SMBs reported that AI‑enabled advertising had supported business growth, and 68 % said that simplified tools had empowered them to be more creative with their advertising. The study also highlighted that AI is being used not only to create advertising assets—including streaming ads—but also to optimise campaigns more quickly, identify customers faster, and level the playing field against larger brands with heftier advertising budgets.
Amazon’s own advertising platform has seen a rapid rise in AI adoption. The share of Amazon advertisers in India using AI‑powered tools grew 77 % year over year, and SMBs generated 62 % more ad creatives in the first quarter of 2026 than they did in the same period a year earlier.
Streaming TV has moved from a niche to a viable option for smaller advertisers. Three years ago, high costs, minimum spend requirements and the complexity of planning and buying were cited as the main barriers. Today, SMBs view the medium as a way to reach new audiences, build brand awareness and strengthen credibility.
The shift extends beyond domestic borders. More than half of Indian SMBs that considered cross‑border advertising inaccessible three years ago now say it is more accessible. Amazon’s Seller Assistant, an AI‑powered expansion guidance tool, supplies product recommendations, market‑demand insights and country‑specific compliance support, helping businesses identify international growth opportunities.
Despite the growing use of AI, human judgement remains central. Business owners are still the most common final decision‑makers, while fully automated advertising decisions without human review remain rare.
Looking ahead, 92 % of Indian SMBs surveyed said AI would be important to their future competitiveness. Companies are increasingly looking to the technology not only for content creation but also for strategic planning and competitor analysis.
The study’s findings arrive as Amazon Ads expands its AI capabilities across its advertising ecosystem. While Amazon has not announced new product launches specifically for SMBs beyond the Seller Assistant, the rapid growth in AI tool usage suggests that the company is likely to continue investing in AI‑driven advertising solutions.
No regulatory actions or court proceedings related to the study were reported. The research does not indicate any forthcoming earnings reports or funding developments tied to the findings. What remains uncertain is how quickly the broader SMB community will adopt these tools and whether the benefits observed in the sample will translate into sustained growth across the sector.
In short, AI advertising tools are already proving to be a catalyst for Indian SMBs, enabling them to reach new audiences, experiment with formats such as streaming TV, and compete more effectively with larger brands. The pace of adoption is accelerating, and the next few months will likely see further expansion of AI‑powered advertising solutions from Amazon and other platforms, though the long‑term impact on the SMB advertising landscape remains to be seen.
