SaaS Shift: What’s prompting software service firms to spend on ads?

What was once considered the exclusive domain of consumer brands—television spots, outdoor campaigns, storytelling-driven videos, and even influencer tie-ups—is now finding its way into the strategies of enterprise technology players. In the last few years, Software-as-a-Service (SaaS) companies have begun stepping beyond their traditional playbook of product-led growth (PLG) and inbound marketing into the world of advertising and brand building. 

The shift is not without reason. According to The Rise of SaaS in India 2024 report by Bessemer Venture Partners, India’s SaaS sector is projected to reach $50 billion by 2030. With this surge, players such as Freshworks, Zoho, Postman, Exotel, QNu Labs, among others, are competing in an increasingly crowded market where products often converge quickly in features and pricing. In such an environment, product excellence alone no longer guarantees visibility or trust.

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This has opened the door for advertising. “In the enterprise space, the sales motion is more complex and anchored in brand trust. Multiple stakeholders—from CEOs to CTOs to business heads—expect confidence not only in the product but in the company’s scale, reliability and long-term vision. That’s why SaaS companies are increasingly investing in advertising, OOH, and storytelling to build memorability and signal credibility,” stated Udit Agarwal, VP and Global Head of Marketing at Exotel, a Bengaluru-based AI-powered customer engagement platform that operates on a SaaS model.

Platforms Driving Impact

For many SaaS firms, building brand memorability and signalling scale have become as important as their product roadmaps. Buyers, especially in enterprise markets, are influenced by more than demos or feature lists. They want confidence in a vendor’s reliability, longevity, and vision. Increasingly, that confidence is being shaped by brand presence across platforms. 

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For SaaS players, choosing the right platforms has become as critical as the message itself. Experts note that LinkedIn remains the backbone for most B2B companies, offering precision targeting, account-based campaigns, and thought leadership opportunities. Beyond LinkedIn, SaaS firms are also experimenting with Instagram Reels, YouTube Shorts, and podcasts to reach audiences in more engaging, consumer-style formats.

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Ramesh Ravishankar, Co-Founder & Chief GTM Officer at Highperformr.ai, an AI-powered sales platform, noted that nearly every SaaS category now has dozens of competitors. “Once a startup knows what’s working, it quickly turns to ad platforms to scale demand and defend mindshare. Paid campaigns powered by AI make it easier to reach ICPs with precision,” he said.

Ravishankar, who brings over a decade of experience from Freshworks, pointed out that LinkedIn remains the strongest B2B channel, while Google and Meta excel at intent capture with AI bidding that adjusts spend in real time. Programmatic and Connected TV have also emerged as efficient channels for B2B storytelling, and discovery via answer engines like ChatGPT and Perplexity is shifting marketers’ focus toward AI-optimised content and ads.

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For QNu Labs, the strategy is firmly omni-channel. According to Sudiptaa Paul Choudhury, CMO of QNu Labs, a deep-tech SaaS player in quantum cybersecurity, the three most effective platforms are LinkedIn for B2B decision-maker targeting, programmatic advertising for broader reach and retargeting, and Google Search Ads to capture high-intent prospects already researching quantum security solutions.

Choudhury added that QNu Labs runs focussed campaigns across different user journeys, using formats like whitepapers, compliance updates, case studies, awards, blogs, and analyst mentions.

SaaS marketing goes consumer-style

The willingness to spend on advertising reflects the maturation of SaaS marketing. QNu Labs now allocates 20–40% of its marketing budget to brand campaigns, a significant increase from virtually zero in its early product-led days. According to Choudhury, this shift reflects the broader need for SaaS companies to educate prospects, build trust, and demonstrate real-world value as their technologies evolve and markets become increasingly competitive.

Adding to this perspective, Agarwal observed that in a crowded SaaS ecosystem, advertising, OOH, and storytelling are essential to cut through the noise, build memorability, and command premium positioning.

Going forward, many SaaS companies will adopt consumer-style marketing strategies—leveraging influencer voices, snackable content, OOH, and even mass media—while maintaining an enterprise-grade foundation of trust, compliance, and ROI. One reason SaaS tools are no longer limited to IT teams but have become part of everyday routines is that products like ChatGPT, Canva, and Notion are now embedded in daily workflows. Ravishankar noted that this shift is driven not only by local competition but also by global pressures, as Indian SaaS firms strive to stand out in fast-moving, competitive markets.

SaaS companies are entering the advertising arena as a strategic complement to product-led growth, not a replacement. The push toward advertising is fuelled by multiple factors, as per experts, including intensifying global competition, the need for market education, and the drive to build brand trust.

Over the next five years, as SaaS tools integrate further into daily workflows, advertising will not just be optional—it will be a key driver of growth, differentiation, and global competitiveness for Indian and international SaaS players, shaping the next generation of enterprise tech brands.