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Large companies in every industry are rushing to adopt generative artificial intelligence (GenAI), but it is small businesses that can make great strides with the advent of this incredible technology, particularly in their marketing strategies. Despite technology’s pervasive presence in the news, a 2023 McKinsey survey found that only 10% to 14% of companies use GenAI in their marketing efforts, a sign that companies of all sizes are struggling to understand how the technology can have a positive impact. immediate impact on sales workflow. However, GenAI represents a unique opportunity for SMBs to create impactful, personalized campaigns.
The technology has enormous potential for creating highly personalized advertisements that create deeper connections with important consumer groups, saving time and effort. As CMO of Nextdoor, we recently launched an AI Assistant tool aimed at enabling small businesses to connect with the approximately 85 million neighbors on the platform. Our team sees this as an important first step in onboarding SMBs, the beating heart of our neighborhoods, into technology so they can become early adopters of GenAI to future-proof their business, stay ahead of trends marketing and continue to serve their communities as best they can.
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Unlocking creativity and connection for SMBs with GenAI
GenAI can help advertisers craft messages that engage the distinctive wants, needs and priorities of local communities. This approach allows marketers to effectively reach the consumers most relevant to them without the need for expensive market research. The ability to create such targeted content not only increases the relevance of marketing efforts, but also significantly improves customer engagement and loyalty.
GenAI’s power to create highly personalized campaigns is transforming the advertising landscape and creating new advantages for early adopters. Many platforms, including Nextdoor, are leveraging this technology to allow advertisers to tap communities that matter with quality content. A 2023 Optimove survey reflects this shift, indicating that a majority of consumers (55%) view AI-powered marketing positively, appreciating its role in personalizing shopping experiences. This trend highlights the potential for companies to interact with consumers in new ways.
Improve the efficiency and reach of small businesses
GenAI is revolutionizing the way marketers approach campaign development – a huge asset for SMBs who dedicate the majority of their resources to other aspects of the 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 a 25.1% faster execution rate. For SMBs, integrating GenAI with hyperlocal insights from their community further enhances the impact of these campaigns, enabling more granular targeting of specific consumer groups.
This change is especially beneficial for small businesses, which often don’t have large marketing teams. GenAI tools, when used correctly, can level the playing field, providing the means to create impactful campaigns that resonate deeply with local audiences. The future of marketing lies in developing hyperlocal and tailored campaigns, as consumers are more responsive to messages that align with their surroundings and interests.
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The future head of GenAI in marketing
Looking to the future, it is critical that small businesses adopt GenAI responsibly. This means being transparent about its use, safeguarding user privacy, ensuring human oversight and identifying any bias. Nextdoor’s approach to integrating GenAI, combined with its deep local knowledge, exemplifies how companies can develop granular marketing campaigns that effectively target specific audiences.
For the marketing industry, embracing a community-focused strategy powered by GenAI is not just a trend but a necessity. It’s about creating campaigns that are not only effective but also enrich the communities they target. The era of GenAI-powered marketing has arrived and is transforming the landscape in ways that particularly benefit SMBs.