Utilization of Digital Marketing Channels to Optimize Business Performance Among SMEs In Jakarta, Indonesia

Abstract

Jakarta currently has at least one million small and medium-sized enterprises (SMEs) engaged in various business fields. In Indonesia, SMEs have contributed around 62% of the gross domestic product (GDP). It, of course, makes the existence of SMEs very important for economic growth. Besides that, technological developments are a challenge for entrepreneurs today. Entrepreneurs are competing to make their products superior through various business strategy initiatives. However, without proper knowledge, it will undoubtedly reduce the strategy's effectiveness. Therefore, many social science studies on business performance have given rise to many solutions to current business problems. One of them is a digital marketing strategy which is currently referred to as marketing 4.0. Currently, many digital marketing channels are circulating on the internet, making it difficult for entrepreneurs to identify which strategy is suitable for their business. Therefore, in this study, researchers focused on using digital marketing channels among SMEs, which focused on search engine marketing, social media marketing, email marketing, and affiliate marketing. The sample comprises 87 SME owners from the Jakarta region, with a survey method chosen to achieve the study's objective. According to the study, SMEs that have been operating for one year are more likely to choose social media as a channel that has more impact on their business performance and are followed by search engine marketing, social media marketing, and affiliate marketing. Aside from that, email marketing is an insignificant influence on business performance among SMEs in Jakarta, Indonesia.