How digital marketing has boosted business in Laos

A study in the International Journal of Business Performance Management has looked closely at how digital marketing strategies have influenced business performance in Laos, especially among small and medium-sized enterprises (SMEs). The research focuses on tools such as online advertising, social media marketing, content marketing, and mobile marketing.

Viengsavang Thipphavong and Xayphone Kongmanila of the National University of Laos in Vientiane, Laos, used a structural equation model (Smart PLS4) to analyze their data and found that online advertising has a clear impact on both financial and operational performance. Social media marketing, on the other hand, had a broader influence as it positively affects financial performance, operational efficiency, and a company’s IT capabilities.

The study showed that content marketing was linked primarily to improvements in the companies’ IT infrastructure, while mobile marketing, while beneficial to operational and IT performance, did not directly impact financial outcomes. This has implications for smaller companies that might do better to not invest too heavily in the kind of digital tools that will not help them generate greater profits.

The researchers suggest that businesses in Laos, SMEs in particular, should focus on using online advertising and digital marketing tools to improve their financial and operational performance. They add that the government might play a role too by improving digital infrastructure, supporting online marketing education, and encouraging the growth of e-commerce. Such steps would create a more favorable environment for businesses to adopt digital marketing strategies and enhance their overall performance, the team suggests.

As digital tools become more accessible, companies in emerging markets such as Laos are increasingly able to reach wider audiences and streamline operations without incurring significant marketing costs. For Laos, where internet penetration and digital adoption are yet to mature, this presents a clear opportunity. As more people access the mobile internet, businesses have the potential to expand their customer base and improve operational efficiency with relatively modest investment.