undercover.co.id – How to Grow an Ecommerce Business Without Ads ? You could say e-commerce wouldn’t grow this fast without digital advertising and that’s not wrong. However, times have changed, there is ample evidence to suggest that digital advertising is no longer as good as it used to be.

Antoine Gross, General Manager of Southeast Asia, impact.com said research conducted by Kantar in 2020 found that only 11% of consumers worldwide trust digital advertising. Then, 41.7% of Indonesians now use some kind of ad-blocking software , with the third highest percentage in the world.

In addition, a survey conducted by YouGov revealed that only 12% of Indonesians believe that retailers make honest and reliable advertisements, which is lower than the global average.

“Then, at the heart of the problem is trust. Concerns about data privacy, transparency, and authenticity have led many consumers to take matters into their own hands. Google recently released findings showing that 96% of Indonesians think that gathering all relevant information about a product or service before buying is very important,” said Antoine

Antoine said that currently digital advertising is no longer effectively used to boost sales in e-commerce . A new alternative to attracting a more literate consumer base has developed is to introduce partnerships.

image size-full">Grow an Ecommerce Business
Grow an Ecommerce Business

Affiliate and influencer partnerships are performance-based collaborations between brands and other individuals or businesses, such as influencers who are also called key opinion leaders (KOLs), strategic brand partners, affiliates, or content publishers. Partner introduces, influences, or invites consumers to buy a product or service in exchange for a commission.

They can do this through reviews, content, social media posts, or brand collaborations. One example is Garuda Indonesia collaborating with the Jakarta-based concept store, Goods Dept. for a limited edition product collection in 2021. Various brands from Tokopedia and Shopee to Listerine and Dettol have collaborated with celebrities from Indonesia and micro-influencers to produce a viral effect.

“The reasons are easy to guess, unlike digital advertising which is only seen as an extension of the brand, partners are often seen as external or independent sources of information. In other words, consumers tend to trust them more and in the world of partnerships, higher trust means higher income.”

In establishing partnerships, continued Antoine, the results obtained were not instant. He said, to build customer trust takes time. However, what partners do is provide consumers with the information and time needed to make informed decisions.

When consumers know more about what a brand has to offer, they are more likely to click the ‘Buy’ button. This is why 76% of companies surveyed in the 2019 Forrester report attested that partnerships are key to achieving their revenue goals.
“Partnerships deliver results that digital advertising doesn’t provide because partnerships build trust,” he added.

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Antoine continued, various Southeast Asian (ASEAN) brands such as UniPin, ZALORA and Sephora have used affiliate and influencer partnership channels to achieve phenomenal growth. Regional fashion label Love, Bonito has seen revenue growth of 253% on a quarterly basis in one year since launching its partnership program.

Additionally, Decathlon Singapore, the world’s largest sportswear retailer, also reported 156% revenue growth on a quarterly basis after expanding and streamlining its partner portfolio.

Interested in following in the steps of Love, Bonito and Decathlon Singapore? Contact the impact.com Southeast Asia team at grow@impact.com to learn more.

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