Abstract:
This study investigates the adoption of social media advertising among Small and Medium Enterprises (SMEs) in Sri
Lanka, emphasizing its significance over general digital marketing strategies. Despite high engagement with social media
platforms, SMEs demonstrate low utilization of social media advertising, indicating a notable research gap. The study
revealed that SMEs extensively use social media platforms but their adoption of social media advertising remains limited.
This highlights the importance of exploring factors influencing social media ad adoption to bridge this gap effectively.
Employing a survey methodology, data was collected from SMEs in Sri Lanka during the Covid-19 pandemic from 100
SME sectors. The collected data were analyzed using the SPSS Version 25.0. Key findings representing that there is an
influence of factors such as perceived relative advantage, complexity, costs, top management support, and employee
capability on social media marketing adoption among SMEs. Based on the findings the study recommends tailored digital
literacy programs for SMEs to enhance their social media marketing skills and advocate for government incentives to
encourage adoption. Collaborations with educational institutions can facilitate knowledge exchange and skills
development, while community engagement initiatives can foster peer learning and support among SMEs. By focusing
on social media advertising adoption specific to Sri Lankan SMEs, this study aims to address the research gap and
provide actionable insights for practitioners, policymakers, and researchers. Understanding social media ad adoption is
crucial for SMEs to leverage digital marketing effectively and thrive in the digital era.
