Impact of Digital Marketing in Nepal

More than 36.7% of Nepalese are connected to the internet as of 2021. It means that roughly 11 million Nepalese are exposed to digital marketing in some way- be it social media marketing, Google ads, TikTok, or YouTube ads. This staggering statistic shows how digital marketing is permeating in everyday life of Nepalese people. Although digital marketing is a relatively new trend in Nepal, businesses and consumers from all over the country are quickly adopting and acknowledging this trend.

Current Status of Digital Marketing in Nepal

Digital marketing is no longer in the rudimentary phase in Nepal as both small and large-scale businesses are capitalizing on it. However, it is still in a growth stage and has a broad scope for development.

The rise in digital marketing in Nepal can be linked with the growing number of internet and smartphone users. As per the Nepali Times, 96% of Nepali households now own mobile phones. Among them, 61.5% have smartphones, and 26% of Nepalese use the internet daily. This phenomenon is driving the hike in digital marketing.

The Rise of Social Media Marketing in Nepal

Social media marketing is at the forefront of digital marketing tools in Nepal. Today, Nepalese are present on all the popular social media sites.

In August 2021, 90.93% of Nepalese were connected to Facebook, 6.33% surfed Instagram, 5.26% browsed YouTube, 1.37% were on Twitter, 0.86% used Pinterest, and 0.5% were on LinkedIn as per StatCounter. Interestingly, 0.15% of Nepalese are even on Reddit, and 12.43% are actively using TikTok.

The first thing that these numbers indicate is that the audience for digital marketing is growing every day. Secondly, the crowd visits different platforms, so businesses need different social media strategies to attract and retain customers in different places.

Market share of Digital Marketing in Nepal

It is fair to say that digital marketing has seen a meteoric rise in Nepal in the last few years. As of 2018, big Nepalese brands were allocating an annual budget of around Nrs. three million on digital marketing. According to local digital marketing agencies, those brands were only spending roughly Nrs. 500,000 annually just a few years ago.

Likewise, in the overall marketing industry, the market share of digital marketing was 10 percent in 2018. Still, traditional marketing, such as print, TV, radio, out-of-home advertising, etc., has a substantial share in the marketing industry. The Advertising Association of Nepal reports that the market share of digital marketing in Nepal was only 5 percent in 2016. Needless to say, that number has jumped significantly in 2021; but the precise figure is not available yet.

The Impact of Covid 19 on digital marketing in Nepal

Nepal experienced a digital transformation following the COVID-19 pandemic. Businesses started digitalizing everything from marketing to delivery management and payments.

As everything became online, digital marketers had their target audience at arm’s reach. The firms could track, study, and monetize digital data that grew as more and more potential customers visited their website or social media pages. The collected data further helped in making effective campaigns and digital marketing strategies.

During the lockdown, digital marketers saw openness in customers to digital offerings. Many consumers switched their shopping behavior, and e-commerce reached new highs. As a result, businesses started investing more in social media marketing, Google ads, and other types of online advertising to promote their e-commerce and products. 

Besides the usual email and social media marketing, digital marketers started conducting more virtual events and webinars and focused on content marketing to connect with customers.

On the other hand, the pandemic made various forms of marketing, such as out-of-home (OOH) marketing, irrelevant. Businesses started realizing that digital marketing is less expensive and hits the target market directly. Thus, even the companies that never used digital marketing before started making an online presence.

Business Impacted

Businesses in Nepal have been using digital marketing for its myriad of benefits, such as low cost, higher return on investment, ease of measuring, adjusting, precise targeting, greater engagement, and so on.

The ease of digital marketing has led to the rise of entrepreneurship across the country. More and more people are launching e-commerce, social commerce, and small businesses and are promoting using various digital marketing tools.

Similarly, established brands in Nepal are using digital marketing to generate brand equity. For example, Trisara, a famous restaurant brand in Nepal, posts photos of celebrities hanging out at the restaurant on their social media sites. This strategy has helped the brand to position itself as an upscale restaurant popular among media personalities. 

On the other hand, NIC Asia is known for using digital platforms to promote various campaigns. For instance, the bank held a contest #chamatkarikbachatkhata to raise awareness about its new service. Likewise, when it comes to SEO in Nepal, Daraz has been taking the lead among all e-commerce. Whenever customers search for anything online, we see Daraz at the top of Google’s page most of the time.

At present, businesses in Nepal are using digital marketing tools in conjunction with traditional marketing to ensure integrated marketing communications. With the help of digital marketing, companies are reaching a wider audience at a relatively lower cost. Furthermore, they are able to measure, adjust, and share their marketing campaigns and strategies more effectively.

Changing Scenario

The landscape of digital marketing keeps changing with the advent of new technologies and trends. Businesses in Nepal and all over the world are experiencing the following changes in digital marketing at the moment:

Shoppable Posts

Various social media sites have introduced shoppable posts which provide customers with an easy and quick way to shop. Users can now simply click on a post and purchase the items on display.

Interactive Content

Digital marketing is getting more interactive with the popularity of content such as online quizzes, polls, and contests. Businesses are finding creative ways to engage with the target audience and increase brand awareness and brand resonance.

User-generated content

Similar to interactive content, digital marketers see a huge push for user-generated content. Apart from offering excellent social proof, user-generated content can build an emotional connection between the brand and the customer. It turns customers into brand ambassadors and can help grow a wider audience.

Video Marketing

Video lies at the top of the virtual food chain. Studies have shown that people remember 95% of a message when watched and only 10% when read. This fact, coupled with people’s tendency to get attracted to videos over other forms of content, has soared the preference for video marketing. 

Future of Digital Marketing

The future of digital marketing is hard to predict accurately with new technologies entering the market. However, the following trends are likely to take the market by storm in a few years. Some of them are already in implementation, while others are on the rise.

Virtual Reality

Virtual reality uses computer technology to simulate real-world experience. Businesses can use VR technologies to offer a digital experience instead of a physical one to promote products and services. VR also lets customers be a part of the product development process and collect early feedback. For example, real estate, architecture, and construction companies can allow clients to experience the final product with the help of VR.

Augmented Reality

Augmented reality (AR) combines the real world with computer-generated elements, such as images, sounds, and texts. One of the ways AR can be used in marketing is by letting customers try products before buying them. Brands like Sephora, L’Oreal, and Perfect Corp are using this technology to let customers see how the makeup looks on them digitally, whereas brands like Topshop and Timberland are creating AR changing rooms. Businesses are likely to promote their products with AR to create a true connection between the products/services and the customers.

Neuromarketing

Neuromarketing uses neuropsychology to study customers’ motivations, preferences, and decisions. Such insights are used to develop products, advertisements, pricing strategies, product placement, etc. In Nepal, digital marketers are not yet using neuroscience to create effective marketing plans. But this field is likely to get popular with increasing access to better education and research.

Gaming 

The young population of Nepal is increasingly attracted to online games. The craze for popular online games is undeniable and digital marketers are likely to enter this domain to reach the target audience.

Companies are likely to publish games that simulate the real game as much as possible in the near future, and digital marketing is likely to follow the route.  

 

How to Select the Right Agency for Digital Marketing in Nepal?

The right digital marketing agency for your business depends on two main things: your objective and the available budget. Some agencies specialize in branding, while others may focus on digital marketing tools, such as SEO optimization, pay-per-click, and Search Engine Marketing. Depending on your marketing objective, you can choose the agency with the matching unique selling point (USP).

On the other hand, budget is also an essential factor that determines the best option for you. Digital marketing firms with experts and established brand names are likely to charge you higher. But even if the affordable firms meet your marketing objective, the budget can become a decisive secondary factor.

About the author





Santwana Rai is a digital marketing strategist at Zinc Holding. She works with some of the biggest brands in Nepal and freelances as a content writer. Currently enrolled at King’s College in BBA program, Miss Rai enjoys collecting plants and reading movie trivia in her free time.

Zinc Holding is a creative agency operating in Nepal. It provides digital marketing solution to its client through social media marketing, google ads, influencer marketing, TikTok marketing, and brand consulting. Team in Zinc is a group of passionate individuals with national and international work experiences. Our area of expertise are total business solution, digital marketing, logo and label design, brand souvenir, experiential marketing, website Development. 

References

Carvalho, M. (2017, August 15). This Is Why Video Is the Most Engaging Type of Content. Retrieved from Medium: https://medium.com/@slicevideo/this-is-why-video-is-the-most-engaging-type-of-content-e5ca46d5cef1

Digital Marketing, A Growing Trend in Nepal! (2018, November 18). Retrieved from Nepali Sansar: https://www.nepalisansar.com/technology/digital-marketing-a-growing-trend-in-nepal/

Dixit, K. (2020, March 5). Mobile Nepal is hooked on YouTube. Retrieved from Nepali Times: https://www.nepalitimes.com/banner/mobile-nepal-is-hooked-on-youtube/

Social Media Stats Nepal. (2021). Retrieved from StatCounter: https://gs.statcounter.com/social-media-stats/all/nepal

Leave a Comment

Your email address will not be published. Required fields are marked *