Amazon Ads report finds AI adoption widening advertising access for Indian SMBs
Amazon Ads’ survey of 300 Indian B2C SME marketing decision-makers found 87% say AI has opened previously inaccessible ad opportunities. Advertisers using Amazon’s AI-powered tools in India grew 77% year on year, while SMBs produced 62% more AI-generated ad creatives in Q1 2026.
What happened
Amazon Ads research finds Indian B2C SMBs increasingly use AI advertising tools to access streaming TV, create more campaigns and support cross-border
Key facts
- 87% of Indian SMBs said AI enabled access to previously inaccessible advertising opportunities
- 75% said AI-enabled advertising supported business growth
- 68% said AI tools unlocked greater marketing creativity
- Amazon advertisers using AI-powered tools in India grew 77% year over year
- SMBs generated 62% more ad creatives using AI tools in Q1 2026 versus the prior year
- 48% previously cited high costs as a streaming-TV barrier
- 39% cited minimum-spend requirements
- 36% cited planning complexity
- 62% said streaming TV helps reach new audiences
- 59% said streaming TV can increase brand awareness
- 56% said AI made cross-border campaigns more accessible
- 59% said AI supported expansion into new countries
- 2% use fully automated decision-making without human review
- 40% retain business owners as final decision-makers
- 32% use AI with human review
- Survey covered 300 Indian B2C SME marketing decision-makers
- Global study covered 4,100 respondents across 14 countries
Why this matters
The surge in AI-generated SMB creative makes Indian adtech, creative-automation, and seller-enablement partners attractive targets for marketplace and media-platform expansion.
What to watch
- Growth in active Amazon India advertisers and advertising revenue, not just AI-tool users.
- Changes in CPCs, ROAS and conversion rates for SMB-heavy categories such as beauty, apparel, home and electronics accessories.
- Adoption of regional-language creative generation, video tools and automated campaign products.
- Amazon policy updates on AI-generated claims, image authenticity, trademark usage and creative review.
- Evidence that AI-enabled advertisers increase repeat spend after initial promotional credits or tool trials.
- Amazon Ads is likely to bundle generative creative tools with guided campaign setup, automated targeting and budget recommendations tailored to Indian SMBs.
- Marketplace sellers and D2C brands will increase always-on testing of localized images, video, regional-language copy and seasonal promotions.
- Agencies may reposition from asset production toward strategy, measurement, catalog optimization and AI governance.
- Competitors including Flipkart, Meta, Google and Indian commerce platforms are likely to emphasize low-cost AI ad creation and SMB onboarding incentives.