The Rise of Digital Marketing in Nepal

In recent years, there has been substantial growth in Nepal's digital landscape, leading to a revolution in various business and societal sectors. Despite the challenges of being a landlocked country, Nepal has made impressive strides in embracing and leveraging digital technology for advancement and prosperity. The digital age has brought significant changes in the business landscape globally, and Nepal is similarly affected. With advancing technology, Nepalese businesses are increasingly using digital tools and strategies to stay competitive. Digital marketing, which utilizes the internet and online technologies, is a key part of this transformation.

Data from January 2023 indicates that Nepal had 15.85 million internet users, with a penetration rate of 51.6% of the total population. Mobile internet speed was around 13.49 Mbps. Social media is also widely used, with 12.60 million users, including 11.85 million on Facebook, 2.15 million on Instagram, 1.20 million on LinkedIn, and 553.6 thousand on Twitter. Platforms like Facebook, YouTube, TikTok, and others are actively used by 41% of the population, making them excellent for brand promotion. The increasing use of smartphones and the internet, with over 40 million mobile users and 11 million internet users in 2022, has provided a significant opportunity for businesses to reach a wider audience through digital channels.

These statistics suggest that Nepal is quite ready for a digital marketing revolution, given its youthful and tech-savvy population, along with a continuously increasing internet usage rate.

Usage of Digital Marketing in Nepal

Online shopping, driven in part by the pandemic, has seen significant growth, and the Southeast Asian e-commerce market, including Nepal, is expected to reach $153 billion by 2025.
Start-ups, particularly in the technology and e-commerce sectors, are using digital marketing techniques to establish and grow their online visibility. Success stories like Daraz, and Sastodeal illustrate this trend.
Even small businesses with limited budgets can now use digital marketing to reach their target audience through social media, email marketing, and SEO. A survey indicates that 83% of Nepali businesses are currently utilizing digital marketing strategies.

Digital marketing assists businesses in connecting with customers right from the beginning of the buying process. It establishes a quick and interactive communication channel between buyers and businesses, enabling instant feedback. Unlike traditional advertising, digital marketing gives businesses more control over how they advertise. They don't need to depend on various vendors to carry out their marketing campaigns.

Digitalizing business has shown good results in the case of the Nepalese market too. People's willingness to purchase online has gone quite high. This can be shown by the amount of purchases Nepalesen makes online in Daraz. Every November 11th (Kartík 25), Daraz holds its 11.11 event, where it offers a large number of discounts, gifts, and prizes. In the fourth edition of 11.11, Daraz reached its first milestone in the history of e-commerce in Nepal, where Daraz served 700,000 Nepali online customers on the platform within 24 hours. The event generated more than Rs 360 crore in revenue which brought a J curve in their business.

At present, many Digital Marketing agencies provide training as well as digital marketing services as required. This has also led to widening the digital marketing service users as well as trained human resources to effectively provide those services.

Digital Marketing Approaches: For Nepalese Businesses

Some of the methods to engage in Digital Marketing are as follows:

Affiliate Marketing

Affiliate marketing is one of the oldest forms of marketing, and the digital world has given it new life. In affiliate marketing, companies and individual "influencers" promote another company's products and get a commission every time a sale is made or a fresh lead is added to their list. Many well-known companies, including Amazon, have affiliate programs that pay out millions of dollars to affiliates that help sell their products.

Content Marketing

The goal of content marketing is to reach potential customers through the use of written, visual, or video content that interests them. That content is usually published on a website and then promoted through social media, email marketing, search engine optimization, or even pay-per-click campaigns. Content marketing attempts to be more subtle than advertising, and the product or service the sponsor is attempting to market may or may not be conspicuously highlighted.

Email Marketing

Email marketing is still one of the most effective digital marketing channels, though many people associate it with spam and treat such messages accordingly. Many digital marketers use their other digital marketing channels to collect names for their email lists. Then, through email marketing, they try to turn those leads into customers.

Search Engine Optimization (SEO)

The goal of SEO is to get a business to rank higher in Google search results, ultimately increasing search engine traffic to the business’s website. SEO marketers research words and phrases consumers are using to search for information online and use those terms in their content.

The Power of Digital Marketing: Case Study of Mero Laptop

Merolaptop.com

However, the effectiveness of digital marketing in Nepal faces challenges such as low digital literacy among consumers and privacy and security concerns. To overcome these challenges, first of all, it's important to encourage people to understand and use digital tools. This way, a larger group of people can take part in buying and selling things online, investing in digital marketing training, and building a strong online presence to enhance visibility and reach and at the same time build a strong relationship with customers and gain their trust.

Despite progress, Nepal faces challenges related to internet infrastructure, speed, and connectivity in some remote areas. This might make it difficult for people residing in remote areas of the country to adopt digital business. As the government and private companies team up to enhance infrastructure, businesses must smartly deal with these challenges.

In conclusion, digital marketing has the potential to help Nepali businesses grow significantly. By using the opportunities in the online world and dealing with the challenges, companies can become visible and reach a wide range of customers. As Nepal embraces the digital age, blending traditional values with modern marketing methods will be crucial for getting the most out of digital marketing in the country.

By: Kumud Prakash Mallik