Understanding Digital Marketing and E-Commerce

Aug 18, 2024

Digital Marketing Overview

Introduction

  • Digital Marketing is a growing hype in the business world, especially post-pandemic.
  • Not everyone understands Digital Marketing and its challenges.
  • Presented by Iwan Setiawan in the first episode of ANALISIS.

Two Main Parts of Digital Marketing

  1. Content Marketing

    • Focuses on creating, curating, distributing, and amplifying content on digital channels.
    • Key platforms:
      • Search Platforms (e.g., Google, YouTube)
      • Social Media Platforms (e.g., Facebook, Instagram, TikTok)
  2. E-Commerce

    • Involves buying and selling processes on digital channels.
    • Final result of content interaction.

Content Marketing

  • Definition: Utilizing content to promote or communicate products and services.
  • Platforms:
    • Search Engines: Users know what they want to look for.
    • Social Media: Content triggers emotions and appears based on user interests.

Characteristics of Search vs. Social Media

  • Search (User-Driven):

    • Content is longer, detailed, and timeless.
    • Tends to answer specific questions (e.g., "how to" guides).
  • Social Media (Brand-Driven):

    • Content is shorter, trend-based, and often ephemeral (5-60 seconds in length).
    • Influences users without them actively seeking it.

E-Commerce

  • Focuses on transactions and selling products.
  • Types of E-Commerce:
    1. Marketplace:
      • B2C and C2C platforms (e.g., Tokopedia, Shopee).
    2. Direct-to-Consumer:
      • Brands sell directly through their own websites.
    3. Social Commerce:
      • Selling via social media (e.g., Instagram, TikTok).
    4. Conversational Commerce:
      • Selling via chat applications (e.g., WhatsApp, Line).
    5. Livestream Commerce:
      • Live product demonstrations where viewers can purchase directly.

Two Types of E-Commerce

  1. Own Online Shop:
    • Focus on user experience and interface of the online shop.
  2. Customer Interaction-Based:
    • Focus on interactions between buyers and sellers through social media, chat, or live events.

Challenges in Digital Marketing

  • Growth vs. Reality:

    • 202 million internet users in Indonesia; 87% have shopped online, yet online sales only represent 5-10% of total retail sales.
    • Digital marketing spending is around 20-25%, while television dominates at 60%.
  • Distractions:

    • Overwhelming content from various sources makes it hard for brands to stand out.
    • Focus on discounts and promotions leads to customer acquisition traps.
  • Logistics Costs:

    • High shipping costs deter online shopping for low-cost items.

Conclusion

  • Digital Marketing and E-Commerce are essential for brands entering the digital space.
  • Future topics: Digital Transformation and its relevance to various companies.
  • Upcoming episode will explore who should consider Digital Transformation.