Understanding Digital Marketing Fundamentals

Sep 10, 2024

Digital Marketing Overview

Introduction

  • Digital Marketing is a popular and growing topic in the business world, especially post-pandemic.
  • The importance of understanding Digital Marketing and its challenges.
  • Presented by Iwan Setiawan in the first episode of ANALISIS.

Key Components of Digital Marketing

  1. Content Marketing
    • Focuses on creating, curating, distributing, and amplifying content on digital channels.
    • Platforms:
      • Search Platforms: Google, YouTube (Google's product).
      • Social Platforms: Facebook (now Meta), Instagram, TikTok.
  2. E-Commerce
    • Involves the buying and selling process on digital channels.
    • Content Marketing (message delivery) vs. E-Commerce (transaction completion).

Content Marketing

  • Definition: Utilizing content to promote products and services.
  • Main platforms:
    • Search Engines: Users know what they seek (e.g., recipes, travel tickets).
    • Social Media: Triggers emotions; content is shown based on user interests.
  • Characteristics:
    • Search Engine Content: Longer, detailed, timeless (e.g., "how-to" guides).
    • Social Media Content: Short, trend-based, quick consumption (e.g., 5-60 seconds).

E-Commerce

  • Focus on transaction processes.
  • Types of E-Commerce:
    1. Marketplace: B2C (business to consumer) and C2C (consumer to consumer).
      • Examples: Tokopedia, Shopee.
    2. Direct-to-Consumer: Brands sell directly via their own channels.
    3. Social Commerce: Selling through social media platforms (e.g., Instagram, TikTok).
    4. Conversational Commerce: Selling via chat apps (e.g., WhatsApp, Line).
    5. Livestream Commerce: Live demonstrations where consumers can buy in real-time.

Challenges in Digital Marketing

  • Misconceptions about the size of the Digital Marketing industry in Indonesia.
  • Statistics:
    • 202 million internet users; 87% have shopped online.
    • E-commerce only accounts for 5-10% of total retail sales.
  • Digital marketing spending:
    • 60% on traditional media (e.g., television), 20-25% on digital.

Key Challenges:

  1. Content Overload:
    • High competition for attention; many ads, chats, and emails.
  2. Customer Acquisition Focus:
    • Overemphasis on discounts and promotions affects brand perception.
  3. Logistics Costs:
    • High shipping costs deter online purchases for low-cost items.

Future Topics

  • Upcoming discussion on Digital Transformation and its necessity for companies.
  • Considerations for which companies should pursue Digital Transformation.

Conclusion

  • Importance of understanding both Content Marketing and E-Commerce.
  • Challenges identified need to be addressed for effective Digital Marketing.