Learning Objectives
By the end of this chapter, you will be able to:
- Define social media and explain its features.
- Define digital marketing and its main channels.
- Compare digital marketing with traditional marketing.
- Identify the key metrics used to measure digital marketing.
Social Media
Social media refers to websites and applications that are designed to allow people to share content quickly, efficiently, and in real-time. They are a key part of Web 2.0, focused on user-generated content and online interaction.
- Examples: Facebook, Twitter, Instagram, LinkedIn, TikTok.
Features of social media
- User-generated content — users create posts, photos, videos, and reviews.
- Profiles and networks — users connect with friends, followers, or professional contacts.
- Interaction — likes, comments, shares, and messages create two-way communication.
- Virality — content can spread rapidly through shares.
Types of social media platforms
| Type | Examples | Business use |
|---|---|---|
| Social networking | Facebook, LinkedIn | Brand pages, community, recruitment |
| Media sharing | YouTube, Instagram, TikTok | Product videos, reels, tutorials |
| Microblogging | X (Twitter), Threads | News, customer service, announcements |
| Messaging | WhatsApp, Viber, Messenger | Orders, support, customer updates |
| Review/discussion | Google Reviews, Reddit | Reputation, feedback |
Digital Marketing
Digital marketing is the component of marketing that uses the internet and online-based digital technologies to promote products and services. Key channels include:
- Search Engine Optimization (SEO): The process of improving your website to increase its visibility when people search for products or services related to your business in Google, Bing, and other search engines.
- Content Marketing: Creating and sharing valuable online content (such as blog posts, videos, and infographics) to attract and retain an audience.
- Social Media Marketing: Using social media platforms to connect with your audience to build your brand, increase sales, and drive website traffic.
- Paid advertising (PPC): Ads on Google, Facebook, Instagram, or YouTube where the business pays per click or per view and can target people by location, age, and interests.
- Email marketing: Sending newsletters, offers, and updates to customers who have subscribed.
- Influencer marketing: Partnering with creators who have trusted audiences to promote a product.
flowchart LR
A[Awareness: SEO and social reach] --> I[Interest: content marketing]
I --> D[Decision: offers and engagement]
D --> C[Conversion: purchase or signup]
C --> R[Retention: community and follow-up]
Figure 1: Digital Marketing Funnel
Digital vs traditional marketing
| Aspect | Traditional marketing | Digital marketing |
|---|---|---|
| Media | Newspaper, TV, radio, hoardings | Search, social media, websites, email |
| Targeting | Broad audience | Precise targeting by location, age, interest |
| Cost | High minimum budget | Can start small; pay per click or view |
| Measurement | Hard to measure exact results | Clicks, conversions, and sales tracked in real time |
| Interaction | One-way communication | Two-way: comments, messages, reviews |
| Speed | Slow to change a campaign | Campaigns can be changed instantly |
Measuring digital marketing
- Reach / impressions — how many people saw the content.
- Engagement — likes, comments, shares, and saves.
- Click-through rate (CTR) — clicks ÷ impressions.
- Conversion rate — the share of visitors who buy, sign up, or call.
- Cost per acquisition (CPA) — ad spend ÷ number of customers gained.
- Return on ad spend (ROAS) — revenue earned ÷ ad spend.
Worked example: a Kathmandu café spends Rs. 5,000 on Instagram ads. The ad is shown 50,000 times and gets 1,000 clicks (CTR = 2%). Forty people redeem the online coupon. CPA = 5,000 ÷ 40 = Rs. 125 per customer. If those customers spend Rs. 20,000 in total, ROAS = 20,000 ÷ 5,000 = 4.
Nepal context
- Facebook, TikTok, Instagram, and YouTube are widely used in Nepal, and many small businesses sell directly through Facebook pages and messaging apps.
- Online sellers combine social media promotion with cash on delivery and digital wallets such as eSewa and Khalti.
- Restaurants, colleges, travel agencies, and clothing stores in Nepal commonly rely on Google Maps listings and reviews to be found by nearby customers.
Benefits and challenges
- Benefits: low cost, precise targeting, measurable results, direct customer interaction, and access to wider markets.
- Challenges: intense competition for attention, negative reviews that spread quickly, changing platform algorithms, fake followers, and data privacy concerns.
Summary
Social media platforms have become a dominant force in communication and content sharing. Businesses leverage these platforms through digital marketing, which encompasses a range of online strategies. Key among these are SEO, to improve search engine visibility, and content and social media marketing, to engage with customers and build a brand community. Unlike traditional marketing, digital marketing can be precisely targeted and measured with metrics such as CTR, conversion rate, CPA, and ROAS.
Key Takeaways
- Social media allows users to create and share content in real-time.
- Digital marketing uses online channels to promote products and services.
- SEO, content, social media, paid ads, email, and influencer marketing are key digital marketing channels.
- Digital marketing is cheaper to start, more targeted, and more measurable than traditional marketing.
Discussion Questions
- What is the difference between traditional marketing and digital marketing?
- Why is SEO so important for businesses today?
- Think of a brand that does social media marketing well. What makes them effective?
Exam-Style Questions
Short answer
- Define social media and digital marketing.
- What is SEO? Why is it important for a business website?
- Define CTR and conversion rate with an example.
Long answer
- Explain the major channels of digital marketing with examples.
- Compare digital marketing with traditional marketing. Why are Nepali small businesses shifting to digital channels?
