Australian small and medium businesses (SMEs) are locked in a ruthless branding war, struggling to break through a virtual jungle of social media and artificial intelligence noise, VistaPrint’s just-released 2025 SME Report reports.
With nearly two-in-five (39%) lamenting that AI has turned standing out into a Herculean task and a hefty 44% pointing fingers at social media for muddying their message, the stakes couldn’t be higher. Yet, in a twist of tenacity, two-thirds (66%) of these scrappy entrepreneurs are wielding customer engagement and personalized branding as their trusty swords, while a surprising resurgence of physical marketing materials is helping them cut through the noise—all in a bid to claim their slice of a crowded, algorithm-driven world.
The antidote
Customer engagement, personalization, and authenticity appear to be the perfect antidote to the murky waters of increased social and AI content. Two-thirds of SMEs (66%) say customer engagement and personalization is the main way they differentiate their brand in an environment where social media and AI-generated content are gaining popularity. Prioritizing authentic storytelling (35%) ranked the second most popular way to differentiate their brand. In addition, physical marketing materials made the top three branding and marketing methods that SMEs say they are going to invest in most this year, alongside digital marketing and social media.
Marcus Marchant, CEO of VistaPrint, commented on the resilience of SMEs, stating: “Despite the challenges facing small businesses in 2025, it’s encouraging to see that optimism remains strong. SME owners are resourceful, and they recognise that strong branding, personalised engagement – particularly the use of physical marketing materials that leave a lasting impression – and authenticity, are key to standing out in today’s evolving landscape. At a time of rapid change, businesses that embrace adaptability and innovation will continue to thrive.”
SME owners certainly appreciate the value of branding and marketing, with almost 2-in-5 (38%) putting extreme (9%) or high (29%) emphasis on it as a driver of business success in the current landscape. Providing great customer service, being transparent about your practices, and delivering an incredible product and service every time are the most effective ways to build brand trust according to SME owners. Partnering with influencers ranked the least.
Murkier waters making it difficult to stand out
Social media and artificial intelligence do, however, appear to be crowding and muddying the waters. In addition to the SME sentiment that AI makes it harder to stand out as a brand, slightly more SME owners (44%) believe social media does the same. Of those concerned about AI, lack of human touch (26%), data privacy and security risks (21%), and accuracy of the information and data reported (21%) ranked highest for the reasons for concern. SMEs overwhelmingly believe (62%) that AI-generated content is, or has the potential to, dominate the content we see on social media and other media channels, and almost half (48%) say AI-generated content makes it difficult to compete for share of voice. As always seems to be the case, Australian businesses are tackling headwinds with optimism, stoicism, and pragmatism. 2025 is an election year in Australia, and roughly 2-in-5 (38%) SMEs expect the upcoming election will impact their business positively, while over a quarter (27%) expect things will remain the same.
Furthermore, the global political landscape doesn’t appear to be impacting businesses confidence either, with just under half (48%) either very prepared (13%) or somewhat prepared (35%) to navigate the political shifts happening both locally and overseas, versus just 11% who are unprepared. With regards to technological shifts and the rapid proliferation of AI, despite some concerns, almost 2-in-5 (37%) Aussie SMEs are very optimistic (10%) or somewhat optimistic (27%) about the role of AI in business.
To find more about VistaPrint’s range of physical marketing and branding materials [see here].
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