Episode 6
AI: The Great Equalizer for Small Business Marketing
AI is reshaping the digital marketing landscape for small businesses, providing them with tools to effectively compete against larger corporations. The shift has been significant, with over a third of small businesses now integrating AI into their operations, including marketing, customer service, and data analysis. This technology allows for real-time insights from social media, enabling businesses to create engaging content that connects with their audience. According to recent Verizon data, a large majority of these businesses report that AI has positively impacted their performance, particularly on platforms like TikTok, which has become a key player in this transformation. Companies are now offering comprehensive services that combine AI capabilities with professional production resources, helping entrepreneurs build a strong and credible digital presence.
Diving deep into the evolving world of artificial intelligence, we dissect how AI is reshaping the landscape for small business owners today. The conversation centers around insights from Loretta Marie Kimball, who makes a compelling case that AI is no longer just a buzzword but a genuine game-changer for small to medium businesses. For years, SMBs have struggled to compete with larger corporations, often feeling like they were fighting an uphill battle in the marketing arena. Kimball argues that AI is the equalizer, giving entrepreneurs tools that can help them not only keep pace with but potentially outpace their larger competitors.
Small business owners are typically stretched thin, wearing multiple hats from accountant to operations manager, often leaving little time to focus on a consistent marketing strategy. However, AI tools now allow these entrepreneurs to automate and enhance their efforts, leading to increased efficiency and responsiveness in their marketing. With data indicating that over a third of small businesses are already leveraging AI, the shift is rapid and significant. The podcast highlights the importance of this change, emphasizing the transformative power of AI in content creation and customer engagement.
As we explore the numbers, we find that 75% of businesses using AI report positive impacts on their social media performance. This isn't just about adopting the latest tech; it’s about creating real value and measurable results that enhance customer relationships and drive sales. We also take a closer look at platforms like TikTok, which have emerged as vital for small businesses looking to harness AI for marketing. The ability to generate trend-focused, engaging content at a rapid pace is becoming essential, and AI is providing the insights necessary to do just that. In short, AI is not merely a tool; it’s becoming a crucial part of how SMBs can establish and maintain a competitive edge in a fast-paced digital marketplace.
Takeaways:
- AI is transforming the marketing landscape for small businesses by providing them a competitive edge against larger corporations.
- Over a third of small businesses are now leveraging AI tools for marketing, customer service, and data analysis, enhancing their operational efficiency.
- The integration of AI allows small businesses to create engaging content rapidly, helping them keep up with the fast-paced social media trends.
- Verizon data indicates that 75% of small businesses using AI report improved performance, particularly through platforms like TikTok.
- Companies are now offering comprehensive solutions that include AI tools combined with professional production resources for small businesses.
- The shift towards AI is enabling small business owners to focus on strategic marketing without the need for extensive payroll or hiring additional staff.
Links referenced in this episode:
Companies mentioned in this episode:
- New Media Local
- Verizon
- TikTok
Transcript
Welcome to the deep dive.
Speaker A:Today our mission is really to cut through all the noise, you know, the hype around AI.
Speaker A:We want to pull out the stuff that actually matters for.
Speaker A:Well, for small business owners.
Speaker A:We're doing a real deep dive into some insights from Loretta Marie Kimball over@newmedia local.com.
Speaker A:her analysis really focuses on how AI is radically changing the game.
Speaker A:Digital marketing, the SMB landscape, all of it.
Speaker B:That's absolutely right.
Speaker B:The core idea here, the thesis is that for, well, for years, small business owners felt like they were fighting this marketing war they just couldn't win.
Speaker A:Right.
Speaker B:Kimball's work argues that AI is finally maybe the thing that levels the playing field, the great equalizer, you could say.
Speaker B:Okay, so we're unpacking how AI is fundamentally shifting that competitive landscape for entrepreneurs, you know, giving them a real, actual shot at keeping pace or even maybe.
Speaker A:Getting ahead of some of the bigger players, potentially.
Speaker B:Yeah.
Speaker A:Yeah.
Speaker B:Strategically outpacing much larger, fully staffed enterprises.
Speaker B:It's possible now.
Speaker A:And, you know, if you're a small business owner listening, you know, this pain, you feel it.
Speaker A:For decades, it was all about passion, right?
Speaker A:Quality, word of mouth, the heart and soul.
Speaker A:Exactly.
Speaker A:But that entrepreneur, the one wearing like five different hats, Accountant, hr, ops, lead, everything.
Speaker A:Yeah, everything.
Speaker A:They just didn't have the bandwidth, the time to run a proper, consistent marketing operation.
Speaker A:You can't be hitting publish on social media five times a day and run the shop.
Speaker B:No way.
Speaker A:Or run complex digital ad campaigns.
Speaker A:It just wasn't feasible.
Speaker B:And the shift Kimball talks about, it's happened fast and it's powerful.
Speaker B:It's more than just making things a bit quicker.
Speaker A:You know, it's not just efficiency.
Speaker B:No, it's about multiplying what they can do, their capabilities.
Speaker B:We're seeing data now showing that more than a third of small and medium businesses are actively using AI tools.
Speaker A:More than a third already.
Speaker B:Wow.
Speaker B:Yeah.
Speaker B:And not just to save time, but to generate real time, actionable insights straight from social media.
Speaker A:Okay, actionable insights.
Speaker A:What does that let them do?
Speaker B:Well, it lets them create really fresh, super engaging content and fast at a speed that, frankly, was just a dream a few years back.
Speaker A:Okay, if this is the new reality, we need to talk numbers.
Speaker A:Hard numbers.
Speaker B:Right.
Speaker A:This isn't just, you know, reading a blog post.
Speaker A:Are businesses really putting their money where their mouth is?
Speaker A:Are they treating AI like a core expense or just kicking the tires?
Speaker B:Good question.
Speaker B:Let's look at the investment picture.
Speaker A:Yeah.
Speaker A:Where's the capital going?
Speaker B:So we do have solid data here.
Speaker B:It's mostly from Verizon research that Kimball references in her analysis.
Speaker B:Okay, and this research, it shows SMBs are past the novelty stage.
Speaker B:They're investing.
Speaker B:Why?
Speaker B:Because they see as the shortcut.
Speaker A:A shortcut to what?
Speaker B:To that sophisticated content creation, that deep audience analysis, stuff that used to need a huge payroll.
Speaker A:Ah, okay, so the specific number overall.
Speaker B:38% of small businesses are now leveraging AI in, well, various parts of their operations.
Speaker A:38%.
Speaker A:Okay, define various parts.
Speaker B:Sure.
Speaker B:That covers, you know, everything.
Speaker B:Internal data analysis, maybe scheduling, customer service bots.
Speaker A:Gotcha.
Speaker A:Backend stuff too.
Speaker B:Exactly.
Speaker A:38% is.
Speaker A:Well, that's a huge jump.
Speaker A:It feels like we're way past the early adopters now.
Speaker A:This is critical mass territory, isn't it?
Speaker B:It certainly looks that way.
Speaker A:But let's hang on, let's push back on that number a bit.
Speaker A:If AI is supposed to be this marketing revolution, where are they actually putting the dollars?
Speaker A:Is it all going to marketing?
Speaker B:That's a really crucial distinction.
Speaker B:And the data gives us the answer there too.
Speaker B:If we narrow it down, really refine that number just to customer facing stuff, digital outreach, then it's 28% of those businesses using AI tools specifically for marketing and social media.
Speaker A:Wait, so 38% overall using AI, but only 28% using it for marketing specifically?
Speaker B:That's right.
Speaker A:So almost a third of the businesses using AI aren't using it for marketing.
Speaker A:That 10 point gap.
Speaker A:Hmm.
Speaker A:That tells us quite a bit, doesn't it, about where the initial priorities are?
Speaker B:It really does.
Speaker B:It sort of suggests maybe two distinct waves of adoption happening.
Speaker A:Okay, tell me more.
Speaker A:Two waves?
Speaker B:Well, the first wave, the bigger group at 38%, seems focused on internal efficiency.
Speaker B:Using AI for backend tasks.
Speaker B:Right.
Speaker B:Invoicing, maybe basic data management, Automating emails, reducing the admin load, Getting their house in order first.
Speaker B:Exactly.
Speaker B:Making things run smoother internally.
Speaker B:The second wave, that 28% focused on marketing, that feels like the real competitive.
Speaker A:Move because they're customer facing.
Speaker B:Right.
Speaker B:They've likely stabilized their operations a bit and now they're actually betting their brand, their reputation, on AI generating that more complex customer facing content.
Speaker A:So it suggests the full marketing revolution.
Speaker A:It's still building steam.
Speaker B:That's what it looks like, yeah.
Speaker B:It's still gathering momentum.
Speaker A:Okay, that definitely reframes the challenge.
Speaker A:So the adoption isn't just talk, it's real capital being spent on foundational change.
Speaker B:Absolutely.
Speaker A:We're talking about a huge chunk of the SMB landscape now, treating AI like.
Speaker A:Well, like their point of sale system or their email platform.
Speaker B:It's becoming necessary A core operational tool.
Speaker A:Right.
Speaker A:And the data shows they're spending the money, which naturally leads us to the big question.
Speaker A:Is it working?
Speaker A:Is the investment paying off?
Speaker B:And the answer there, according to that same Verizon survey Kimball references, seems to be a pretty clear yes.
Speaker A:Oh, yeah, yeah.
Speaker B:The results are overwhelmingly positive.
Speaker B:Get this.
Speaker B:More than three quarters.
Speaker B:So over 75% of the small businesses using AI say social media has positively impacted their business performance.
Speaker A:Wow.
Speaker A:Over 75%.
Speaker A:That's.
Speaker A:That's incredible.
Speaker B:It really is.
Speaker B:They're seeing measurable gains from putting money into this.
Speaker A:So this isn't just, you know, feeling good about having cool new tech.
Speaker A:This is the investment actually translating into results.
Speaker A:More revenue, better leads, stronger engagement.
Speaker B:Exactly.
Speaker B:Real business impact.
Speaker A:Okay, so where are they seeing this impact?
Speaker A:Which platforms are driving it?
Speaker B:Well, when you look at the specific platforms really pushing this forward, Kimball's analysis really zeroes in on one in particular.
Speaker B:TikTok.
Speaker A:Ah, TikTok.
Speaker B:Okay, you really can't talk about successful AI powered marketing for small businesses right now without talking about the gravity of that platform.
Speaker A:The numbers Kimbal gives on TikTok are pretty staggering.
Speaker B:They are.
Speaker A: ion to the US economy just in: Speaker B:24.2 billion.
Speaker B:It's astounding.
Speaker A:With that kind of economic weight, small businesses almost have to be there, don't they?
Speaker A:But they need help to survive that crazy content speed.
Speaker B:That's exactly it.
Speaker B:They need the AI assist.
Speaker B:And the success rate confirms that link.
Speaker B:Nearly 60%.
Speaker B:Think about that.
Speaker B:Almost two thirds of the small businesses reporting success with AI and social media are active on TikTok.
Speaker A:60%.
Speaker B:Okay, the correlation is really clear.
Speaker B:AI is like the engine, right?
Speaker B:Yeah.
Speaker B:It lets small businesses create content that's actually optimized for TikTok's unique style.
Speaker B:You know, fast moving, trend driven.
Speaker A:Let's dig into that speed challenge for a second.
Speaker A:Before AI came along, what was the biggest headache for a small shop owner?
Speaker A:Trying to stay relevant on social.
Speaker B:Just keeping up, plain and simple.
Speaker B:The analysis points out that pre AI, more than half of small business owners said they constantly struggled, just couldn't keep pace with fast moving social media trends.
Speaker A:Right.
Speaker A:Like by the time you figured out the trending sound.
Speaker B:Exactly.
Speaker B:By the time you identified it, researched how to use it, filmed something, edited it, got it posted.
Speaker A:Hmm.
Speaker B:The trend was already over.
Speaker A:Ugh.
Speaker A:Yeah, been there.
Speaker B:You couldn't hit the curve fast enough.
Speaker B:It was always reactive, always late.
Speaker A:So that's the real shift.
Speaker A:AI Brings.
Speaker A:It's not just writing blog posts.
Speaker A:It's giving you the map, the blueprint.
Speaker B:Precisely.
Speaker B:AI tools now analyze all those trends like in real time.
Speaker B:They're watching millions of videos, posts, identifying patterns, and then serving up the exact data points the business owner needs.
Speaker A:Wow.
Speaker B:It gives them the specific insights to adapt really quickly, engage their audience right away while the trend is hot.
Speaker A:Can you give an example, like, for a local business?
Speaker B:Sure.
Speaker B:Think about a local coffee shop owner before.
Speaker B:Right.
Speaker B:They might spend Sunday night scrolling through TikTok just hoping to find some inspiration for the week.
Speaker A:Yeah, endless scrolling.
Speaker B:Now maybe an AI report lands in their inbox Monday morning and it lists, say, the top five trending audio tracks in their city for their demographic and the specific video formats that are blowing up right now.
Speaker A:Okay, that's a game changer.
Speaker B:Totally.
Speaker B:That level of nimble, reactive power, being able to pivot instantly to a new format, that seems to be the core value they're buying.
Speaker A:They're buying time and relevance.
Speaker B:Yes, time and relevance.
Speaker B:Well put.
Speaker A:Okay, so this demand for fast quality relevance, it must be creating new kinds of services, right?
Speaker A:Companies stepping in to help.
Speaker B:Absolutely.
Speaker B:It's driving the creation of these integrated solutions.
Speaker B:Companies are seeing that the small business owner doesn't just need a piece of software.
Speaker B:They need the whole package to actually execute the structure.
Speaker B:Right.
Speaker B:And this is where organizations like New Media, Local, the source of the article, come into the picture.
Speaker B:They're basically streamlining how SMBs can actually capitalize on all this.
Speaker A:So if they're building these integrated services, what do they actually look like?
Speaker A:What are they offering?
Speaker A:Is it just bundling some off the shelf AI tools, or is it more involved?
Speaker B:It seems like it's moving towards something more like packaged authority.
Speaker A:Packaged authority.
Speaker A:Explain that.
Speaker B:Well, the offerings Kimball mentions in the analysis, they show a pretty sophisticated mix.
Speaker B:They're combining the AI tech with, interestingly, professional production gear and infrastructure.
Speaker A:Oh, okay.
Speaker A:Not just software.
Speaker B:Not just software.
Speaker B:The focus isn't just on quantity anymore, like generating a thousand mediocre blog posts.
Speaker B:It's shifting to quality efficiency and helping them build a genuinely reputable online presence.
Speaker A:Quality.
Speaker A:That feels like the key differentiator, doesn't it?
Speaker A:Because if AI just pumps out tons of bland, generic content, it doesn't really help the brand stand out.
Speaker B:Exactly right.
Speaker B:That's not the goal.
Speaker B:The goal is helping SMBs create, say, high quality podcasts or polished video content that looks like it was made by a dedicated team or authoritative online articles that actually build Trust.
Speaker A:And the AI services they're using, they're more complex than just asking ChatGPT a question.
Speaker B:Oh, much more complex.
Speaker B:They're performing processes that are really essential for modern marketing.
Speaker B:Things like content generation at scale, but crucially while maintaining the specific brand voice.
Speaker A:Okay, that's hard, very hard.
Speaker B:Also automated customer interactions, but one sophisticated enough to actually handle complex issues, not just basic FAQs.
Speaker B:And really importantly, sentiment analysis.
Speaker A:Okay, let's pause on sentiment analysis.
Speaker A:We hear that term a lot, but what does it really mean for like a local pizza place or a bookstore?
Speaker B:Right.
Speaker B:Sentiment analysis is basically using AI to understand the emotional tone behind all the digital chatter.
Speaker B:Comments, reviews, social posts, not just keywords, but the feeling.
Speaker B:Okay, for a small business, this is.
Speaker B:Well, it's revolutionary.
Speaker B:Instead of the owner manually reading 50 reviews and trying to guess how people feel about their new pizza special.
Speaker A:Yeah, just getting a general vibe.
Speaker B:Right?
Speaker B:The AI can tell them instantly.
Speaker B:Okay, 80% of the comments about the new special are super positive.
Speaker B:But the 20% that are negative, they all mention the price.
Speaker A:Ah, so it pinpoints the exact issue.
Speaker B:Exactly.
Speaker B:It helps them move from just reacting to like calculated strategy specific intelligence.
Speaker B:Not just raw data overload intelligence, not just data.
Speaker A:I like that.
Speaker B:And Kimball's analysis points out another powerful trend here.
Speaker B:How some of these service providers are actually marrying that AI intelligence with physical professionalism.
Speaker B:Meaning they're integrating impressive looking physical studios kitted out with professional grade equipment into their service offerings for small businesses.
Speaker A:Wait, really?
Speaker A:Physical studios?
Speaker A:That's fascinating.
Speaker A:Why does the physical studio still matter so much when everything's digital?
Speaker B:That's a great question.
Speaker B:Because the AI solves the brain's problem, right?
Speaker B:The content, ideas, the strategy, the trend analysis.
Speaker A:Gotcha.
Speaker B:But think about it.
Speaker B:If the small business owner takes those amazing AI insights and then films a shaky video on their phone in a dimly lit back office.
Speaker A:Yeah.
Speaker A:It kind of ruins the effect.
Speaker A:Loses credibility.
Speaker B:Exactly.
Speaker B:They lose that competitive edge the AI was supposed to give them.
Speaker B:So including access to professional grade equipment, maybe through a subscription or some kind of fractional use model, that solves the production problem.
Speaker B:It helps these smaller businesses establish a truly authoritative digital presence.
Speaker B:One that can actually compete visually with the big national chains who have permanent million dollar studios.
Speaker A:So it signals that there's serious credible investing in their image.
Speaker B:Precisely.
Speaker B:It completes the picture.
Speaker A:It really is the full package.
Speaker A:Then you've got the AI handling the strategy, the speed, the analysis, and then professional infrastructure making sure the final product, the delivery, looks top notch.
Speaker A:That's a powerful combo.
Speaker B:It really is.
Speaker B:And that's kind of the ultimate summary.
Speaker B:The main takeaway here, AI is finally letting entrepreneurs take off several of those hats we talked about at the beginning.
Speaker A:Right.
Speaker A:Without breaking the bank on hiring.
Speaker B:Exactly.
Speaker B:Without having to massively overextend their payroll to bring in a whole marketing department.
Speaker B:It makes that high level, data driven marketing genuinely accessible and affordable for the first time.
Speaker B:Really.
Speaker A:It turns those old limitations, the operational constraints, into potential advantages.
Speaker B:That's the promise.
Speaker B:Competitive advantages.
Speaker B:They can activate now.
Speaker A:So for the SMB owner listening right now, what does this all boil down to?
Speaker A:The article wraps up with a great line, and I think it sums up where things are heading.
Speaker B:What's that?
Speaker A:It suggests that your best new employee might just be a digital one.
Speaker B:Huh, I like that.
Speaker A:The efficiencies, the analytical power we're seeing, it's transforming how small businesses can operate and compete.
Speaker B:You can activate this today, and that transformation feels immediate.
Speaker B:We're already seeing this move beyond just using AI to, you know, catch up or keep pace.
Speaker B:Okay, so here's a thought to leave people with.
Speaker B:Given that AI is already nailing the real time trend analysis, it's solving that keeping up problem we discussed.
Speaker B:What's the next step for small businesses?
Speaker B:How do they go beyond just adapting to the trends the algorithm feeds them and actually start using this predictive power to maybe shake the trends themselves?
Speaker A:Ooh, moving from reactive to proactive, maybe even predictive.
Speaker B:Exactly.
Speaker B:That feels like the next frontier, the critical challenge and opportunity that every smart entrepreneur should be thinking about right now.
