Digital Advertising and Microbusinesses: Daily Business Relevance and a Driver of EU Competitiveness
On Tuesday, 20 May 2025, SME Connect held a working breakfast titled “Digital Advertising and Microbusinesses: Daily Business Relevance and a Driver of EU Competitiveness”, hosted by Marion Walsmann MEP, in the European Parliament, in Brussels.
The discussion brought together policymakers and experts including MARION WALSMANN MEP, IMCO, ITRE Committees; Chair of the SME Circle; MARTIN H. THELLE, Partner at Implement Economics; BETSY ANNEN, Senior Manager, Ads Ecosystem & Safety at Google; ANDREAS PLOTZITZKA, One Person Company Representative; and JONIS REALE, Head of Public Affairs at Junior Enterprises Europe. The discussion was moderated by HORST HEITZ, Chair of the Steering Committee of SME Connect.
This event, part of the SME Connect Digital Tools Platform Episodes, explored how digital advertising supports both day-to-day operations and long-term success of Europe’s smallest businesses. Microbusinesses, one-person companies, and the self-employed make up the vast majority of enterprises in Europe — especially in consumer-facing sectors. For many of them, digital advertising is not a luxury but a necessity: a key tool for reaching customers, promoting services, and staying competitive in an increasingly digital marketplace. To ground the discussion in evidence, we offered an exclusive preview into the recent study by Implement Consulting Group in collaboration with Dr. Antonin Bergeaud from HEC Paris, Commissioned by Google. The study offers data on how micro-entrepreneurs use digital advertising, its economic significance, and its impact on growth and business development.
Following a warm welcome from our host, MARION WALSMANN MEP, the event began with a compelling presentation that set the stage for the debate. The session opened with Martin Thelle of Implement Consulting Group, who shared new economic findings on the impact of personalised digital advertising across the European Union—laying a solid foundation for the lively and insightful exchange that followed.
MARTIN H. THELLE highlighted the substantial economic value that personalised digital advertising brings to the European economy. Drawing from the recent study, Thelle emphasised that personalised ads not only account for 85% of display advertising but also deliver up to four times greater efficiency compared to contextual ads. He pointed out that this efficiency translates into significant economic gains—up to €100 billion in additional revenue for advertisers, €25 billion added to the EU’s GDP, and support for approximately 570,000 jobs. Particularly for SMEs and startups, Thelle stressed, personalised advertising is a vital growth enabler, with 73% of SMEs stating they would struggle to find customers without it. He also addressed the critical role such advertising plays in sustaining digital publishers, with 60% of their digital ad revenue stemming from personalisation. Looking ahead, Thelle noted that with the rise of generative AI, the potential of personalised advertising to further enhance European competitiveness is only set to grow. Importantly, he cautioned against renewed calls to ban or overly restrict personalised advertising, arguing such measures would risk billions in revenue and deeply impact SMEs, publishers, and consumers alike.
Building on the data-driven insights into the macroeconomic value of personalised advertising, ANDREAS PLOTZITZKA offered a powerful on-the-ground perspective from the world of independent creators and small businesses. Speaking as a media producer and digital advertiser, Plotzitzka highlighted that for the smaller companies he represents—ranging from artists to niche entrepreneurs—personalised ads are not just useful, they are essential. These businesses, he explained, lack the budgets for mass-market campaigns and rely instead on precision, efficiency, and measurable impact. Personalised advertising enables them to reach only those who genuinely care, reducing waste and maximising effectiveness. Using the example of a violinist client who discovered a surprising fanbase in Peru through YouTube campaigns, he demonstrated how such tools democratize global reach. Plotzitzka also highlighted the fairness and sustainability of this approach, pointing out that tailored ads minimize psychological and environmental clutter, unlike traditional ads which saturate public space and offer little relevance. From a consumer’s viewpoint, he stressed, personalised ads are less intrusive and more controllable—users can opt out if they choose, a freedom rarely offered by other ad formats. As the digital economy becomes more global, Plotzitzka argued, Europe cannot afford to tie one hand behind its back. Limiting access to personalised ads would unfairly disadvantage local creators in a worldwide competition. His closing appeal was clear: this technology is not only smarter and fairer—it’s a vital tool for modern entrepreneurship and consumer choice. “Please don’t take those away from us,” he urged.
HORST HEITZ highlighted a critical structural challenge: despite digitalisation, only 0.4% of SMEs in Europe currently operate across borders in the internal market. Heitz emphasized that personalised digital advertising and online platforms are fundamentally changing that equation—finally giving small businesses in rural and remote areas the ability to grow without relocating to urban hubs. This development, he stressed, could transform local economies by allowing SMEs to remain rooted in their communities while accessing wider markets.
This theme was picked up by JONIS REALE, who brought the voice of Europe’s younger generation of entrepreneurs into the conversation. Representing over 34,000 junior entrepreneurs from more than 320 junior enterprises, Reale shared how student-run, nonprofit consultancies are helping traditional micro and small enterprises modernise through digital tools—including personalised advertising. Most of these businesses are local, family-run firms that have historically relied on outdated, low-yield methods like local newspapers and billboards. Personalised digital ads, Reale explained, are changing this dynamic by offering small enterprises a cost-effective way to reach the right customers in an oversaturated online space. These tools, once accessible only to major corporations, are now within reach of even the smallest businesses, helping to level the playing field. In Reale’s words, the democratisation of advertising means that SMEs no longer have to rely on “spray and pray” tactics—they can be precise, efficient, and visible to exactly the audience they need to reach.
Rounding out the panel, BETSY ANNEN provided vivid, real-world examples from her daily work with SMEs across Europe. Reaffirming that 99% of European businesses are SMEs, Annen called personalised advertising not a luxury, but a lifeline for these firms. She illustrated how personalised ads deliver budget efficiency—vital for businesses with limited resources—by allowing them to target relevant audiences from the outset, rather than casting wide, expensive nets. One example she shared involved an eco-conscious baby product startup that, thanks to targeted advertising, could identify and reach environmentally-minded parents from day one. Another example spotlighted an Italian coffee roastery testing the waters in the U.S. market—personalised ads enabled the business to target coffee lovers with a taste for Italian culture before making costly investments. Finally, Annen discussed an innovative use case: a French cookware startup using personalised pre-order ads to gauge demand before manufacturing. For SMEs, she concluded, this kind of agile, low-risk market entry is invaluable.
However, Annen also struck a note of caution. While the benefits are clear, she warned that the personalised advertising ecosystem remains fragile, particularly in light of regulatory discussions such as the proposed Digital Fairness Act. If these tools are undermined or restricted, the impact could be severe—potentially jeopardizing up to €250 billion in projected economic growth and severely limiting SME competitiveness. Her closing message echoed earlier speakers: personalised digital advertising is not a threat—it is a vital enabler of growth, opportunity, and innovation across Europe. And as such, it must be preserved with care, not constrained.
