Analysis of Digital Marketing Adoption in Indonesian Micro, Small, and Medium Enterprises

Micro, small, and medium-sized enterprises (MSMEs) have a major role in Indonesia’s economy. In order to grow, MSMEs need the capability to conduct marketing in the digital world. The advancements in digital technologies have made it possible for a cost-effective and hassle-free Digital Marketing adoption. However, the number of MSMEs that have adopted Digital Marketing is still low. Therefore, this study aims to find out what factors that affect Digital Marketing adoption and its benefits. This study will also analyze the implementation of Digital Marketing by MSMEs in Indonesia. This study uses literature study method. This study shows that there are various factors affecting Digital Marketing adoption. This study also shows that various research results have shown that Digital Marketing Adoption can improve the performance of MSMEs. In regards to Digital Marketing implementation in Indonesia’s MSMEs, this study shows that training and mentoring activities by Centers for Research and Community Service of various Higher Education Institutions in Indonesia are very beneficial for MSMEs.

Digital Marketing adoption has a high potential to increase MSME performance. In January 2021, the number of internet users in Indonesia has reached 202.6 million people, which accounts to 73.7% of all Indonesian people (Data Reportal, 2021). Millennials accounts for 25.87% of all Indonesian people and Generation Z accounts for 27.94% of all Indonesian people, the combined percentage of the two generation are 53.81% of all Indonesian People (Ihsan, 2021;Wandari and Darma, 2021;Kusnadi and Darma, 2018;Wulandari and Darma, 2020;Swari and Darma, 2019). Millennials and Generation Z are tech savvy generations that can be influenced through Digital Marketing.
The number of MSMEs that have adopted Digital Marketing technologies is still low.
In May 2021, there were only 12 million MSMEs, which only accounts to 18% of all MSMEs, that had implemented Digital Marketing technologies (N. Akhmad, 2021;Wahyuni and Darma, 2019;Maharani and Darma, 2018). Therefore, it is important to understand the factors that influenced MSMEs in adopting Digital Marketing technologies, the benefits, and how they adopt it.
This study is a literature study. The focus of this study is to analyze the factors that influenced the adoption of Digital Marketing in Indonesian MSMEs, understanding the benefits of implementation, and the analysis on how MSMEs adopt Digital Marketing. The literature study model used in this study is the thematic model. Thematic model literature study is a literature study that classify references based on themes (Widaningsih, 2014

Factors Influencing the Adoption of Digital Marketing in Indonesian MSMEs
Based on the literature study, this study classifies the Digital Marketing Adoption factors in several categories, as can be seen in table 1.  Therefore, it is very important to conduct cost-benefit analysis of Digital Marketing Adoption.
MSMEs that can find a way in optimizing the cost-benefit of Digital Marketing will tend to implement it.

Digital Marketing Benefit Analysis of MSMEs in Indonesia
MSMEs generally have limitations in terms of marketing and distribution network (Widyastuti, 2017). Digital Marketing adoption can be a solution for this matter. Digital Marketing Implementation has several benefits for MSMEs, such as making it easy for customers to acquire information about company products, low cost product promotion, wide market reach, interaction between buyer and seller, increase awareness, and increase sales (Martoyo, 2020;Pribadi et al., 2018).    (2021) Martoyo (2020) Asse (