Small businesses have big plans for 2025—and they’re turning to AI and strategic marketing to make it happen.
A recent survey of 70 small-to-medium businesses reveals key trends that will shape the year ahead, from using AI to solve common challenges like lead generation and content creation to prioritizing PPC, SEO, and video marketing. Business owners are also bracing for rising costs, fierce competition, and the pressure to stand out in crowded markets.
In this article, we break down the trends, challenges, and solutions small businesses are prioritizing in 2025 — and how tools like CallRail’s AI-powered insights can help.
Small businesses have big plans for 2025—and they’re turning to AI and strategic marketing to make it happen.
A recent survey of 70 small-to-medium businesses reveals key trends that will shape the year ahead, from using AI to solve common challenges like lead generation and content creation to prioritizing PPC, SEO, and video marketing. Business owners are also bracing for rising costs, fierce competition, and the pressure to stand out in crowded markets.
In this article, we break down the trends, challenges, and solutions small businesses are prioritizing in 2025 — and how tools like CallRail’s AI-powered insights can help.
Trend 1: Owners are putting AI to work for lead and copy generation
Business leaders want to use AI to solve some of their most pressing problems. Lead generation and qualification (52.9%) and copy and content generation (52.9%) topped the list of AI use cases for small businesses, followed closely by lead follow-up and conversion (44.3%).
Why are these areas so critical? For many small businesses, growth hinges on the ability to generate high-quality leads and nurture them effectively — without overextending limited resources. Writing content, following up with prospects, and qualifying leads can be time-consuming, so AI offers a way to automate these tasks and free up valuable time to focus on strategy and customer relationships.
For example, CallRail’s AI features empower small businesses to automate lead qualification, improve close rates, and optimize marketing ROI. Conversation Intelligence® transcribes calls, tags key terms, analyzes sentiment, and automatically qualifies leads, providing actionable insights to refine SEO, conduct competitive research, and identify high-value opportunities. Convert Assist takes it further with AI-generated next steps and automated follow-ups to convert leads faster. Together, these tools help businesses generate 10% more high-quality leads at 20% lower cost while reducing lead qualification time by 50%, allowing owners to focus on growth and engagement.
Trend 2: Rising costs are the top concern for business owners
Half of small business owners are worried about increasing costs in the next year. These concerns may be associated with inflation, insurance, and tariffs. While owners look at ways to increase revenue, they can also adopt tools like CallRail that help small businesses track ROI and improve operational efficiency to cut costs.
Another significant worry is growing competition, with 40% of respondents reporting increased competitive pressures. Business owners also anticipate a range of issues around technologies, from complexity and cost to measuring their effectiveness. Challenges small businesses anticipate include staffing shortages (23%) and disconnected reporting (14%), but nearly a third (31%) say they’ll be struggling to keep up with technology.
“The changes in the industry push us to innovate and improve with new tools or solutions.” - Ecommerce Fraud Protection Company
Trend 3: Small businesses are budgeting for PPC, SEO, and paid social media
PPC is a priority for 2025 spending, but it’s just one of the ways small businesses are planning to pay to improve lead generation. They’re also budgeting for paid social ads, SEO, and to a lesser extent, email, text, and influencer marketing.
These spending priorities reflect a push to generate more leads and build stronger online visibility. But success isn’t just about launching campaigns — it’s about understanding what’s driving results. For small businesses managing tight budgets, accurate lead attribution is essential to optimize their marketing spend.
You can only use these tactics effectively if you can track how well they’re working. Using a call tracking tool, you can see both online and offline marketing efforts because each tactic is assigned its own phone number.
Tools like Call Tracking provide clarity on which campaigns generate the most leads by assigning unique phone numbers to each tactic. This approach allows small businesses to connect calls to specific PPC ads, social media posts, or SEO efforts, making it easier to track ROI and refine strategies in real time.
By combining smart spending with actionable insights, small businesses can maximize their marketing investments and set themselves up for a strong year ahead.
Trend 4: Small businesses are looking for ways to stand out in competitive markets
Top 2025 marketing challenge for small businesses: Competition
Many of the small-to-medium business respondents say they’re worried about their competition and need differentiators to gain customers. “We are in a small market that is very competitive with many contractors in the space,” says one respondent who runs a plumbing and mechanical services business.
Other small businesses echoed similar sentiments. “We are a service comprised mostly of manual labor, which is difficult to demonstrate to customers and differentiate ourselves from the competition,” notes a respondent who owns a moving company business.
That frustration was shared by many respondents, some of whom said their challenges are exacerbated by economic and market conditions like interest rates and “fluctuating industry trends,” as described by a respondent who runs a truck accessory and vehicle upfitting shop.
With CallRail’s Premium Conversation Intelligence™, AI automatically analyzes customer conversations to help you personalize interactions with prospects. This kind of customer engagement helps you distinguish your business from your competitors.
Small businesses also face sales challenges around sales cycles and processes. Many business owners say they have to deal with long sales cycles, so they can’t rely on impulse purchases. Instead, they need to be strategic and make sure they target busy decision-makers at the right times.
CallRail’s Convert Assist further helps you tailor conversations with prospects by offering smart follow-up. The feature automatically generates ready-to-send messages based on prior calls. You’re able to quickly engage with leads in personalized communications that help distinguish your business from your competitors. Additionally, Convert Assist’s real-time call coaching feature also helps you train sales staff to close more deals. It immediately provides call tips that users can act on right away.
Trend 5: Video marketing is the top new tactic to try
Businesses are ready and willing to test new marketing tactics like video, social media, and influencer marketing — channels that are becoming increasingly critical for engaging modern consumers.
Seventy-four percent of respondents said video marketing was a first or second priority to test in 2025. This reflects growing recognition of video’s ability to capture attention and build trust with audiences. Social media marketing (58.6%) follows closely, offering cost-effective ways to engage with customers, while SMS (41.5%) and influencer marketing (35.6%) are gaining traction as businesses explore new ways to connect with prospects.
It’s encouraging to see that businesses are willing to test new channels and tactics in the year ahead. However, with experimentation comes the importance of measuring results. CallRail’s lead attribution features help you clearly see the results of tests on new marketing tactics. For example, you can track where callers or form fills originated and on which channels your videos perform best.
With better data, small businesses can refine their strategies, focus on what works, and build confidence in testing new approaches for 2025.
Start 2025 strong with smarter lead generation and AI insights
Kick off 2025 with smarter lead-generation tools and AI-powered insights for your small business with the CallRail platform.