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Amazon Ads study finds Indian SMBs accelerating use of AI-powered advertising tools

Amazon Ads study finds Indian SMBs are increasingly using AI advertising tools to access streaming TV, cross-border markets and new audiences. Adoption among Amazon advertisers rose 77% year over year, with businesses citing faster campaign optimisation, creative support and growth potential.

The numbers

Figures from ET Small Business,

SMBs generated 62% more AI-assisted ad creatives in Q1 2026 year over year
Wider survey included 4,100 respondents across 14 countries

Also in the report

  • Nearly 90% of surveyed Indian SMBs said AI advertising tools opened previously inaccessible channels, audiences or formats
  • 75% said AI-enabled advertising supported business growth
  • 68% said simplified AI tools improved creativity
  • 92% said AI will be important to future competitiveness
  • Survey covered 300 Indian SME B2C marketing decision-makers

Why it matters to operators and investors

The surge in AI-assisted creative production among Indian SMBs strengthens the case for partnerships or acquisitions in localized creative automation, campaign optimization, and SMB advertising enablement.

What to watch next

  • Quarterly growth in active Amazon Ads advertisers in India and ad-revenue growth relative to GMV growth.
  • Changes in CPCs, conversion rates and impression share for high-volume Indian retail categories.
  • Adoption of Amazon video, display, DSP or regional-language formats by SMB advertisers.
  • Evidence that AI-created creative raises incremental sales rather than merely increasing campaign volume.
  • New Amazon Ads India features for automated campaign creation, multilingual generation, measurement or budget optimization.
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  • Seller complaints about rising auction costs, low-quality AI creative, policy enforcement or attribution limitations.

Likely next moves

Our read of what comes next — analysis, not reported by the source.

  • Amazon Ads is likely to bundle generative creative, audience recommendations and campaign automation more deeply into self-service workflows for Indian sellers.
  • More SMBs will expand from search-led product ads into video, display and regional-language creative as production barriers fall.
  • Large brands and established sellers will increase bidding discipline, use automation for faster testing and invest in stronger product-detail pages to defend conversion rates.
  • Indian agencies and commerce-enablement firms will launch AI campaign-management packages, training and catalog-cleanup services aimed at SMBs.
  • Competing retail-media and social-ad platforms will emphasize low-cost AI creative tools and easier onboarding to prevent advertiser budget migration toward Amazon.

The counter-case

The case against this reading — not reported by the source.

The reported growth may reflect Amazon’s own advertiser base adopting embedded tools rather than broad, durable AI transformation among Indian SMBs. A 77% increase from an undisclosed base can be immaterial in absolute terms, while 62% more AI-assisted creatives measures production volume—not incremental sales, profitability, or customer acquisition. Easier creative generation could also increase ad clutter, auction competition and CPMs, leaving SMBs spending more to maintain visibility.

The source

Source Read the source at ET Small Business

Published

Also reported by Business Standard, NDTV Profit

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