From Tradition to Transformation: Exploring Factors Influencing Social Media Advertising Adoption by Small and Medium Enterprises (SMEs) in Sri Lanka

Abstract

Purpose of the study: This study aims to investigate the factors influencing the adoption of social media advertising over traditional advertising methods and their impact on brand awareness among SMEs. Methodology: The study adopted an interpretive qualitative research approach, and data were collected from SME owners and marketing managers through in-depth, semi-structured personal interviews. Thematic analysis was used to analyze the data. Findings: The study reveals that platform selection, metrics and analytics tools, real time interaction, and cost-effectiveness drive the shift to social media advertising, while advertising reach and targeting capabilities, customer engagement, immediacy, and influencer partnerships enhance brand awareness compared to traditional methods. Applications: The study offers valuable implications for SME owners and marketing managers to develop appropriate marketing strategies to enhance competitive advantage and facilitate the successful implementation of social media advertising in their businesses. Novelty: This study provides a novel contribution to the literature by addressing an empirical gap in understanding the role of social media advertising in the SME sector in Sri Lanka and the wider region.