Digital Marketing-driven Growth of Small and Medium Enterprises

Research Article
Open access

Digital Marketing-driven Growth of Small and Medium Enterprises

Yuqi Tang 1*
  • 1 Shanghai Laide Academy    
  • *corresponding author yongqingedu@gmail.com
Published on 26 November 2025 | https://doi.org/10.54254/2754-1169/2025.BL29967
AEMPS Vol.245
ISSN (Print): 2754-1169
ISSN (Online): 2754-1177
ISBN (Print): 978-1-80590-569-1
ISBN (Online): 978-1-80590-570-7

Abstract

The high proliferation degree of technology has caused that consumers are more dependent on electronic devices for what the opens more rooms for the development of digital marketing. The development of digital marketing has a significant impact on the business development, and it is a vital part of the strategy of millions of businesses. Research focused on how small and medium sized businesses resist the crisis during the pandemic by using digital marketing and how they become stronger by using digital marketing. Research reveals that SMES used digital marketing strategies comprehensively to open new spaces for products marketing. New channels of innovation attracted consumers’ attention by using innovative digital channels to achieve better products display and market penetration. So as to improve their brand influence. Only when we combine the traditional marketing and digital marketing can we make a really significant breakthrough. Digital marketing extends the channels of marketing communication and traditional marketing. In addition, innovative thinking must be embedded into all promotional activities, and the true consumer needs must be mastered deeply.

Keywords:

Digital marketing, pandemic, influence, innovation

Tang,Y. (2025). Digital Marketing-driven Growth of Small and Medium Enterprises. Advances in Economics, Management and Political Sciences,245,56-60.
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1. Introduction

In the past marketers use hoardings, marketing store and paper advertisement to announce the new product and its features to convert interest of the consumers. But now a day it is impossible that the traditional marketing will be beat in term of marketing form [1]. Digital marketing enlarge new consumption behavior and influence the brand image to a great extent. In addition, people spend more time on online than before, they always use it to browsing the website, singing music and so on [2]. According to the number of internet users in January 2021, it reached 4.66 billion, accounting for 59.5 percent of the world’s population [3]. Therefore, it can be seen that the public’s interest in using the digital marketing as a means of all activities has gradually increased [3]. And the saying goes that “if a company is not searched on Google then that company is not exists” to show the importance of online presence in this era. And some small and medium enterprises has to take some actions to get a competitive advantage to expand scale [2]. In order to compete in the environment that is very serious and developing rapidly, the information about the market is very important for the large and small business. The growth of the Internet has dramatically increased opportunities for firms especially for SMES to enter the global market, reduce cost and establish customer relationships to enter the global market for their products and services, which goes beyond the conventional methods [2]. But in what circumstances is the digital market more popular? And how the digital market promote the development of SMES. Therefore, the author according to the Enterprises' benefit from digital marketing convenience during the COVID-19 pandemic and through digital marketing Netflix become stronger to discuss how the digital marketing help SMES to grow.

2. Enterprises’ benefit from digital marketing convenience during the COVID-19 pandemic

The effects of the COVID-19 are massive and far-reaching, spanning economic, political, social, and psychological aspects. Direct effects of the disease can be seen on human health and people's perceptions of wellbeing. Additionally, the pandemic has shifted demand and supply for companies, forcing them to work in a totally different environment [4]. Traditional marketing was affected during the pandemic because people's lifestyles were changed. People do not go out as much as they used to; thus, it is hard to use traditional marketing to promote products to the public. Thus, digital marketing is popular during this time and it is convenient for market promotion.

In the time of COVID-19, traditional methods of promotion were restricted. Physical stores were closed, and people's movement was limited. Therefore, it was hard for Small and Medium-sized Enterprises (SMES) for their products to be promoted to customers through face-to-face marketing. As a result, many businesses faced a crisis of survival [5]. Forced lockdown and limited market demand in addition to customers' reduced purchasing power led to the widespread loss of income and the closure of many businesses. Due to the advantages of low cost and high efficiency, digital marketing channels became an important means of corporate promotion [6]. Digital marketing also facilitates communication between customers and the managers of certain SMES and no intermediaries are needed [6].

The application of social media for business during the COVID-19 was studied in this research. People were connected through social media and were able to maintain contact with each other as well as share their experiences. Subscribers can enjoy video streaming, instant messaging, and live product demonstrations depending on the specific platform [7]. These features help people communicate with the outside world and gain external information even while staying at home .But their role is far less significant than these. Observing the increasing number of users on this platform, the businesses try to use this channel to promote their products. Not only did it break the restriction of location, but it also tried to use a new way to attract customers' attention. Digital platforms necessitate fundamental organizational transformations. Companies must use advanced technologies and innovative customer communication methods to improve marketing as a whole in order to reduce investment costs and the perceived popularity, productivity, and quality of products by reaching more customers [8]. Digital tools can improve the performance and efficiency of SMES customer communications and help them grow and become more competitive in the market [8]. For example ,during this period, people do not have many opportunities to go out. Therefore, it is hard for them to get food. E-commerce can be used as a platform to buy groceries online, so there is no need to go to physical stores and the crowd will not appear [8]. Not only in the case of food, people also have many other needs in other aspects. Therefore, SMES can use these platforms to display and sell their products according to customers' needs , so that their businesses can run as usual.

Although the epidemic is very serious and affects a lot of people’s lives and the market, there are still ways to solve it. SMES should make different plans according to different situations. When the pandemic hit us, we used digital marketing method to promote our product. Although we can’t travel, we can still give effect to people by digital marketing. And we spread it by the internet and networked. So we broke through traditional marketing and digital marketing become popular in this period.

And it also help enterprise get out of the economy crisis. It’s for sure that this is more suitable for SMES. Their competitiveness increase by digital marketing and their popularity from people dramatically raise.

3. The strengthening of small and medium enterprises through digital marketing

Under the aegis of traditional marketing, product marketing was confined to visits by envoys from one country to another, as in the case of Zhang Qian in ancient China, promoting the integration of different cultures and markets along the Silk Road. This modality was severely inefficient, requiring significant time commitments and a relatively low level of diversity in the mix of goods on offer. Today, digital marketing has overcome the challenge of distance and thus accelerated markets. Not only has the ambit of international relations shifted from the state-centered model of attention and engagement (now increasingly reliant on non-state actors) [9], but there is also an evident shift in consumer taste from media consumption channels, resulting in a significant chunk of time spent every day consuming media via digital platforms [10]. Companies are also increasingly making use of digital marketing. They appeal to consumers by making use of their interest in digital media. This strategy diverts viewer attention to the companies’ products. The increase in Internet connections leads to the emergence of new OTT players. These new OTT players offer different streaming services and change the way consumers consume entertainment [10]. Emergence of enhanced network. Technology enables new streaming services [10]. High smart device adoption. Viewer accessibility increases [10]. In summary, the factors above lead to the growth and distribution of internet media [10]. The top OTT players in the growth of digital media streaming are YouTube, Netflix, and Spotify [10].

Netflix, Inc. is an American media company based in Los Gatos, California. The company was originally founded in 1997 by Reed Hastings and Marc Randolph as a DVD rental business, but later decided to focus on online streaming. It offers a single platform for online streaming of movies, Web series, and television shows [11].

In this modern age, people do not sit for long hours in the background watching TV programs. They just lie down and watch any interesting videos on their phones. So Netflix took advantage of this and expanded a lot. If the brands use this advantage and promote their products on these platforms by advertising, it will significantly increase the consumers’ identity with the brands. Loyalty is the result of the cumulative sum of the consumers’ experiences with the brands and the affective relationship established through that experience. It is the emotional significance and the symbolic meaning that the consumer attaches to the brand. The overall value of a brand is how the organization uses its articulation and emphasis on its unique and authentic differentiation [12]. Encouraging brand loyalty is one of the main benefits of social media marketing. It provides immediate and engaging two-way communication between businesses and consumers [12]. So SMES can usefully apply digital marketing. This will increase brand awareness. Increased awareness will improve consumers’ relationship with the brand. So it will encourage brand loyalty in the long run. This sequence will fulfill the goal expansion of the market.

Online retailers are now utilizing influcencer-based story campaigns. This leads to increased user engagement and ultimately sales growth [13]. The growth of a brand from its establishment to its expansion can create a brand story. A good brand story tells creates a link between the brand and the consumers so that they can be better understood by them. A good brand story creates a brand.

A brand is strong only when its brand image is strong. If a company has already established a strong brand image in the minds of the customers, then there is no need to spend a lot of money on acquiring customers. A good brand image creates confidence in the customers’ mind. It creates consistent preference and use of the product by the customers [12].

Finally, the use of the internet influencers for marketing of the products has been done recently. The internet influencers marketing products by live streaming and offline events have been very successful. By using these methods, the customers have been very engaged. By using these methods efficiently and the internal innovation, the SMES can have a stable growth and slowly increase their business.

The internet removes the boundaries of geography and allows global economic transactions to place an SMES business from China directly in front of a customer in another country without having to establish an expensive presence in that overseas country. By using the Internet, SMES can effectively market their products to their customers, helping to raise brand awareness. A strong brand story creates loyalty. An influencer marketing creates loyalty among customers. Both create growth for the corporate.

4. Conclusion

Findings: The results of this study revealed that digital marketing serves as a promoting factor for growth of SMES. It promoted the expansion of their own industry as well. When the virus spread widely during the COVID-19 pandemic, it brought many restrictions to people's daily life and negatively influenced enterprises in all industries. Meanwhile, by using digital marketing to promote the products also benefited public convenience, and the brands' popularity was greatly enhanced. Finally, SMES benefited a lot and reduced the risk of bankruptcy.

Methodology: With the rapid development of the Internet, digital marketing methods help the connection of international trade and enhance the brands' popularity all over the world, so as to promote the brands to sell their products to customers in all countries. By using methods such as creating brands' stories and using influencer livestreaming, the brand impression can be strengthened and the brand identification of consumers is improved. In this way, digital marketing has provided development opportunities for SMES, improved the competitive power of SMES, and promoted the scaling and development of organizations.

Conclusion: However, with the continuous development of technology, more and more enterprises use digital marketing strategy to attract and maintain consumers' attention, so that digital marketing has gradually become a popular way, and the degree of competition in the promotion intensified, and the development problem of SMES has become more prominent. Therefore, SMES should combine innovation with digital marketing. By using empirical research to explore consumers' psychology and interests, enterprises can create new consumer relationship strategies that go beyond traditional online marketing, which helps consumers to establish deeper brand connections.

Limitation: Traditional marketing is not completely useless, so it is not entirely inappropriate to discard traditional marketing. SMES can use an integrated marketing way to coordinate the use of traditional marketing and digital marketing, which uses the advantages of both and avoids the disadvantages of both.

Approach: An effective way is to improve the traditional marketing that is not only billboard advertising. It should be some well-designed offline activities with a certain strategy. For example, the cooperation of two brands, the event marketing with celebrity participation, the public welfare activities, and the activities related to famous people, all contribute to improving brand awareness and the relationship between consumers and brands.

In addition, new attempts in digital marketing are also made. For example, brand image can be used as the skin of game characters to increase consumers' interest by a new experience touchpoint, or compose a brand song to make consumers feel excited.


References

[1]. DSouza, A. (2023). A study on the evolution of digital marketing. Zenodo (CERN European Organization for Nuclear Research). https: //doi.org/10.5281/ZENODO.7607574

[2]. Denga, E. M., & Rakshit, S. (2023). Digital marketing and the sustainable performance of small and medium enterprises. In Advancing SMEs toward e-commerce policies for sustainability (pp. 213–234). IGI Global Scientific Publishing.

[3]. Bachri, S., Putra, S. M., Farid, E. S., Darman, D., & Mayapada, A. G. (2023). The digital marketing to influence customer satisfaction mediated by purchase decision. Jurnal Aplikasi Manajemen, 21(3), 578–592.

[4]. Susanty, A., Puspitasari, N. B., Bakhtiar, A., & Prasetya, F. (2022). Assessing the impact of the COVID-19 pandemic on small and medium-sized enterprises performance. Frontiers in Psychology, 13, 927628.

[5]. Mishrif, A., & Khan, A. (2023). Technology adoption as survival strategy for small and medium enterprises during COVID-19. Journal of Innovation and Entrepreneurship, 12(1), 1–23.

[6]. Belás, J., Amoah, J., Dvorský, J., & Šuleř, P. (2021). The importance of social media for management of SMEs. Economics and Sociology.

[7]. Susanto, H., Fang Yie, L., Mohiddin, F., Rahman Setiawan, A. A., Haghi, P. K., & Setiana, D. (2021). Revealing social media phenomenon in time of COVID-19 pandemic for boosting start-up businesses through digital ecosystem. Applied System Innovation, 4(1), 6.

[8]. Bermeo-Giraldo, M. C., Valencia-Arias, A., Ramos de Rosas, J. D., Benjumea-Arias, M., & Villanueva Calderón, J. A. (2022, October). Factors influencing the use of digital marketing by small and medium-sized enterprises during COVID-19. Informatics, 9(4), 86.

[9]. Putri, A. R. F., & Paksi, A. K. (2021). The strategy of Netflix to dominate the entertainment media market in Indonesia 2016–2021. Jurnal Ilmiah Dinamika Sosial, 5(1), 110–134.

[10]. Habib, S., Hamadneh, N. N., & Hassan, A. (2022). The relationship between digital marketing, customer engagement, and purchase intention via OTT platforms. Journal of Mathematics, 2022(1), 5327626.

[11]. Bumra, T., & Arora, S. (2025). Various marketing tactics used by brands in collaboration with Netflix (A special case of Squid Game–Season 2). World Journal of Advanced Research and Reviews, 25(2), 1900–1903.

[12]. Fariandi, R., & Ariani, D. W. (2023). The effect of social media marketing activities on brand awareness, brand image and brand loyalty for the Netflix brand. Journal of Management Science (JMAS), 6(3), 359–365.

[13]. Liu, Y., Tamimu, M. G., & Chai, J. (2025). Dynamic Supply Chain Decision-Making of Live E-Commerce Considering Netflix Marketing Under Different Power Structures. Journal of Theoretical and Applied Electronic Commerce Research, 20(3), 202.


Cite this article

Tang,Y. (2025). Digital Marketing-driven Growth of Small and Medium Enterprises. Advances in Economics, Management and Political Sciences,245,56-60.

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About volume

Volume title: Proceedings of ICFTBA 2025 Symposium: Data-Driven Decision Making in Business and Economics

ISBN:978-1-80590-569-1(Print) / 978-1-80590-570-7(Online)
Editor:Lukášak Varti
Conference date: 12 December 2025
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.245
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. DSouza, A. (2023). A study on the evolution of digital marketing. Zenodo (CERN European Organization for Nuclear Research). https: //doi.org/10.5281/ZENODO.7607574

[2]. Denga, E. M., & Rakshit, S. (2023). Digital marketing and the sustainable performance of small and medium enterprises. In Advancing SMEs toward e-commerce policies for sustainability (pp. 213–234). IGI Global Scientific Publishing.

[3]. Bachri, S., Putra, S. M., Farid, E. S., Darman, D., & Mayapada, A. G. (2023). The digital marketing to influence customer satisfaction mediated by purchase decision. Jurnal Aplikasi Manajemen, 21(3), 578–592.

[4]. Susanty, A., Puspitasari, N. B., Bakhtiar, A., & Prasetya, F. (2022). Assessing the impact of the COVID-19 pandemic on small and medium-sized enterprises performance. Frontiers in Psychology, 13, 927628.

[5]. Mishrif, A., & Khan, A. (2023). Technology adoption as survival strategy for small and medium enterprises during COVID-19. Journal of Innovation and Entrepreneurship, 12(1), 1–23.

[6]. Belás, J., Amoah, J., Dvorský, J., & Šuleř, P. (2021). The importance of social media for management of SMEs. Economics and Sociology.

[7]. Susanto, H., Fang Yie, L., Mohiddin, F., Rahman Setiawan, A. A., Haghi, P. K., & Setiana, D. (2021). Revealing social media phenomenon in time of COVID-19 pandemic for boosting start-up businesses through digital ecosystem. Applied System Innovation, 4(1), 6.

[8]. Bermeo-Giraldo, M. C., Valencia-Arias, A., Ramos de Rosas, J. D., Benjumea-Arias, M., & Villanueva Calderón, J. A. (2022, October). Factors influencing the use of digital marketing by small and medium-sized enterprises during COVID-19. Informatics, 9(4), 86.

[9]. Putri, A. R. F., & Paksi, A. K. (2021). The strategy of Netflix to dominate the entertainment media market in Indonesia 2016–2021. Jurnal Ilmiah Dinamika Sosial, 5(1), 110–134.

[10]. Habib, S., Hamadneh, N. N., & Hassan, A. (2022). The relationship between digital marketing, customer engagement, and purchase intention via OTT platforms. Journal of Mathematics, 2022(1), 5327626.

[11]. Bumra, T., & Arora, S. (2025). Various marketing tactics used by brands in collaboration with Netflix (A special case of Squid Game–Season 2). World Journal of Advanced Research and Reviews, 25(2), 1900–1903.

[12]. Fariandi, R., & Ariani, D. W. (2023). The effect of social media marketing activities on brand awareness, brand image and brand loyalty for the Netflix brand. Journal of Management Science (JMAS), 6(3), 359–365.

[13]. Liu, Y., Tamimu, M. G., & Chai, J. (2025). Dynamic Supply Chain Decision-Making of Live E-Commerce Considering Netflix Marketing Under Different Power Structures. Journal of Theoretical and Applied Electronic Commerce Research, 20(3), 202.