New data from Fiverr International highlights significant shifts in marketing strategies among Australian businesses, driven by evolving privacy laws, economic pressures, and changing consumer priorities. 

With impending privacy regulations set to align with Europe’s stringent GDPR laws, almost one-quarter (24.8%) of medium-sized businesses surveyed are scaling back on targeted advertising. This strategic shift prioritises compliance and long-term sustainability over traditional data-driven marketing methods.

The upcoming privacy regulations are pushing businesses, especially mid-sized ones, to rethink how they approach advertising, according to Fiverr chief business officer, Gali Arnon.

“With the rising costs and risks tied to data-driven advertising, along with the new challenges around consent management, companies are being driven to shift toward more sustainable and privacy-compliant marketing strategies. As the definition of personal information broadens and consent rules tighten, brands will have to find new ways to connect with their audiences.”

Rather than simply cutting costs, businesses are reallocating budgets toward enhancing customer experience and operational efficiency. Notably, two in five (41.8%) Australian companies surveyed are investing in AI across the customer journey, while 40.8% are optimising logistics and offering faster shipping options. Furthermore, over two-thirds (39.8%) are turning to content creation and influencer partnerships to build direct, owned channels.

AI adoption is accelerating, with 68.6% of respondents integrating AI into their operations. This trend is especially pronounced in e-commerce, where 84.2% of businesses now use AI,

The research also highlights strategic workforce planning among SMEs for the upcoming holiday season. With 42.8% of SME owners surveyed hiring full-time or part-time staff and 40.2% bringing on seasonal employees, the retail sector is preparing to meet the festive rush. Additionally, 40% of businesses are leveraging freelance talent for added flexibility, and 6.8% are turning to AI tools as an alternative to expanding their teams. 

Competition from larger e-commerce brands, such as Amazon, Shein and Temu, is a major concern for almost half (44.6%) of SMBs surveyed, highlighting the immense pressure they face from well-resourced competitors. 

“For SMBs, the challenge is not just how to compete, but how to outmanoeuvre competitors with far deeper pockets. It’s a critical time for businesses to invest strategically, ensuring every dollar spent contributes to long-term growth and customer loyalty,” Arnon added.

Another key finding from the research is the shift in consumer priorities, with affordability now outweighing sustainability in purchase decisions. As economic pressures mount, 50.79% of respondents prioritise good deals, and 41% value free shipping, particularly among women. While these practical concerns dominate, a notable 7.14% still consider sustainable products, and 7.74% prioritise ethical brands, indicating that a segment of consumers continues to value sustainability and ethics in their choices.