The systematic literature review was organized to answer research questions about digital marketing strategies for expanding Indonesia’s MSMEs creative products markets. The focused research questions are:

(RQ1): What is the definition of digital marketing strategy and the definition of creative product market?

(RQ2): Which countries have implemented digital marketing in creative markets in MSMEs?

(RQ3): Who is involved, and how familiar are MSMEs with creative product markets?

(RQ4): What strategies are used in digital marketing in Indonesia? How is it implemented, what are the challenges, and what is the success rate of digital marketing in Indonesia?

(RQ5): What are the future research and recommendations for digital marketing in expanding the creative market?

Research on digital marketing strategies in MSMEs has been widely published, but this literature review focuses on a collection of relevant research. This research is taken from papers or proceedings indexed in MDPI, IEEE, TaylorandFrancis, and Elsevier, which are all registered with Scopus. This research uses a time span between 2010 and 2024 with the aim that the research is still relevant to the current time.

The papers selected must use English and the keywords “digital marketing,” “MSMEs,” and “creative products.” Table 1 describes the selected papers, with details of the author, reference, publisher, and year of publication, to present overall data about the papers reviewed.

Research questions based on the keywords “digital marketing,” “MSMEs,” and “creative products” with the criteria of English-language papers with a full text published between 2021 and 2024. The selection of papers that match these criteria uses the inclusion and exclusion method described in Table 2.

Through specific categories and keyword searches, we identified 74 papers listed on Scopus (MDPI, Taylor&Francis, Elsevier). We then applied the year of publication criteria from 2019 to 2024, resulting in 72 articles that met the year criteria and were written in English (Figure 1).

Twenty-two articles were selected based on Scopus indexed journals and proceedings from 2019 to 2024. Research on digital marketing and economic creative markets based on journal publication years from 2021 to 2024 as follows: journals published in 2019 (9%), 2020 (5%), 2021 (14%), 2022 (23%), 2023 (32%), and 2024 (18%). Meanwhile, based on countries that have implemented digital marketing in creative markets in MSMEs, there is the following data: Indonesia (63%), Kenya (5%), Slovakia (5%), India (5%), Ghana (5%), Thailand (5%), Vietnam (5%), and Pakistan (5%). Figure 2 below explains the categorization of papers based on the PRISMA method. Figure 2 shows the year of publication based on 22 selected journals from 2019 to 2024. Meanwhile, Figure 3 shows which countries have implemented digital marketing in creative markets in MSMEs based on 22 selected journals from 2019–2024.

This research highlights the essential role of digital technologies—such as the Internet of Things (IoT), artificial intelligence (AI), and big data—in transforming how Indonesian MSMEs operate and engage with customers, especially in marketing creative products. It reveals that digital marketing enhances operational efficiency, broadens audience reach, and provides cost-effective alternatives to conventional marketing strategies. However, MSMEs exhibit varied levels of digital literacy and limited use of innovation in technology and products. The findings underscore the urgency of improving digital competencies, particularly in branding, product differentiation, and market expansion through social media, e-commerce, and influencer collaborations. These enhancements are pivotal for strengthening competitiveness and penetrating international markets, as well as leveraging data-driven approaches to build customer loyalty (Figure 4).

Digital marketing strategy is the planning and actions companies or individuals take to utilize digital technology to market products or services to the target market effectively and efficiently. In this strategy, companies use various digital channels such as social media, search engines, email marketing, websites, or e-commerce to achieve marketing goals, which include increasing brand awareness, attracting new customers, and increasing sales and customer loyalty. Some of the important components of a digital marketing strategy include selecting the right target market, using appropriate digital channels, search engine optimization (SEO), campaign data analysis, and utilizing influencer marketing and marketing automation.

The creative product market is an economic ecosystem that produces, distributes, and consumes goods or services based on creativity, innovation, and cultural values. Products in this market often include goods that are not only oriented toward function but also toward esthetics and user experience, such as handicrafts, fashion design, art, innovative culinary, and digital products. Key characteristics of the creative product market include unique product differentiation and distinctive cultural value or local identity. This market involves creative industry players who create products with elements of art and functionality and target consumers with specific preferences, such as art lovers, collectors, or community groups with specific interests. Specific findings can be seen in Tables 3, 4.

Digital marketing strategy is the planning and actions taken by companies or individuals in utilizing digital technology in marketing products or services to target markets effectively and efficiently (Ma and Gu, 2024; Rizvanović et al., 2023; Bruce et al., 2023; Jung and Shegai, 2023). Strategies that utilize digital channels such as social media, search engines, email marketing, websites, or e-commerce to achieve marketing goals (Ma and Gu, 2024; Wu et al., 2024; Mushi, 2024; Gao et al., 2023; Jung and Shegai, 2023; Sembiring et al., 2022). This digital marketing aims to increase brand awareness, attract new customers, and increase sales and customer loyalty (Wu et al., 2024; Rizvanović et al., 2023; Laila et al., 2024; Sharabati et al., 2024; Erhan et al., 2023; Saptono et al., 2024). In a digital marketing strategy, several main components must be considered, namely determining the target market, choosing the right digital channel, free and paid search engine optimization, how to present marketing content, whether or not influencer marketing and email and marketing automation are applied and data analysis and evaluation of the strategies used. An explanation of the definition of digital marketing strategy is summarized in the Figure 6.

The creative product market is an economic ecosystem that focuses on producing, distributing, and consuming goods or services based on creativity, innovation, and cultural values. This market involves individuals or companies that develop products with esthetic elements, functionality, and uniqueness as the primary added value. Creative products often originate from the creative industry sector, covering various fields such as graphic design, fashion, performing arts, film, music, innovative culinary, handicrafts, and software and game development (Anatan and Nur, 2023; Martini et al., 2023; Jung and Shegai, 2023; Farida and Setiawan, 2022; Saptono et al., 2024).

Some of the characteristics of creative product markets are based on innovation and creativity, have cultural values and local identity (Rizvanović et al., 2023; Anatan and Nur, 2023; Sembiring et al., 2022), focus on product differentiation (Anatan and Nur, 2023; Martini et al., 2023; Jung and Shegai, 2023; Farida and Setiawan, 2022; Saptono et al., 2024), and specific and segmented target markets. Some examples of creative products are arts and crafts, design and fashion, media and entertainment, creative culinary, and creative technology (Mushi, 2024; Anatan and Nur, 2023; Bruce et al., 2023, Sembiring et al., 2022; Figure 7).

Based on the selected papers in this study, the following countries have implemented digital marketing in creative markets in MSMEs: Indonesia (63%), Kenya (5%), Slovakia (5%), India (5%), Ghana (5%), Thailand (5%), Vietnam (5%), and Pakistan (5%).

Based on the explanation above, it can also be concluded through the following Figure 8.

In digital marketing of the MSME product market, several parties are involved, namely the MSME actors themselves, government and regulatory agencies, digital and e-commerce platforms, consumers and communities of creative product lovers, educational institutions, and business indicators. Of course, each party involved has its role in efforts to expand the creative product market. Tables 5, 6 below explain the details of who is involved and how well MSMEs understand the creative product market.

The parties involved in the creative product market include micro, small and medium enterprises (MSMEs; Wu et al., 2024; Laila et al., 2024; Mushi, 2024; Sari et al., 2023; Anatan and Nur, 2023; Sharabati et al., 2024; Bermeo-Giraldo et al., 2022; Ziółkowska, 2021; Deku et al., 2024; Jadhav et al., 2023; Sembiring et al., 2022; Hokmabadi et al., 2024; Saptono et al., 2024) which are one of the main actors in the creative product market, creating products based on innovation, culture, and creativity, such as batik artisans, local fashion designers, handmade accessories manufacturers, innovative culinary makers, and creative technology startups. Government and regulatory agencies (Wu et al., 2024; Laila et al., 2024; Mushi, 2024; Sari et al., 2023; Anatan and Nur, 2023; Sharabati et al., 2024; Ziółkowska, 2021; Deku et al., 2024; Jadhav et al., 2023; Sembiring et al., 2022; Hokmabadi et al., 2024) play a role in supporting the creative market ecosystem through policies, regulations, and assistance programs such as training, tax incentives, and access to financing. Digital platforms and e-commerce (Ma and Gu, 2024; Sharabati et al., 2024; Gao et al., 2023; Hokmabadi et al., 2024), such as Shopeee and Tokopedia, help MSMEs reach a wider market. Social media can also be used as the primary marketing tool for creative products. Consumers and communities of creative product lovers (Wu et al., 2024; Laila et al., 2024; Mushi, 2024; Sari et al., 2023; Anatan and Nur, 2023; Sharabati et al., 2024; Bermeo-Giraldo et al., 2022; Ziółkowska, 2021; Deku et al., 2024; Jadhav et al., 2023; Sembiring et al., 2022; Hokmabadi et al., 2024; Saptono et al., 2024) are individuals who appreciate creative works, both domestically and internationally. Specific communities, such as art collectors, fashion enthusiasts, and gamers, are potential markets for creative products. Educational institutions and business incubators that support MSMEs with training, market research, and digital skills development. Examples are universities with creative economy programs, coworking spaces, and startup accelerators (Figure 9).

MSMEs’ understanding of the creative product market is categorized into several categories, namely MSMEs that already understand and are skilled in the creative product market with the criteria of MSMEs (Ma and Gu, 2024; Wu et al., 2024; Rizvanović et al., 2023; Laila et al., 2024; Sharabati et al., 2024; Jung and Shegai, 2023; Farida and Setiawan, 2022; Kaur et al., 2022; Hokmabadi et al., 2024; Erhan et al., 2023) that already understand creative industry trends, digital marketing strategies, and the importance of product differentiation, actively using e-commerce, social media, and digital marketing to increase sales. MSMEs that are starting to adapt to the creative product market (Bruce et al., 2023; Gao et al., 2023; Ziółkowska, 2021; Jung and Shegai, 2023; Deku et al., 2024; Jadhav et al., 2023; Hokmabadi et al., 2024) with the criteria of starting to realize the importance of creativity and branding in business, using several digital platforms, but still experiencing obstacles in marketing strategies and product innovation. MSMEs still lack an understanding of the creative product market (Martini et al., 2023; Jadhav et al., 2023; Hokmabadi et al., 2024) with the criteria that they are still oriented toward conventional production and do not understand how creativity can increase the added value of products and difficulties in utilizing digital technology for marketing and distribution (Figure 10).

In using digital marketing strategies in Indonesia, especially the creative product market, you can use several methods that have been in previous research, namely the use of social media for branding and promotion, the use of influencers and KOLs in marketing creative products, SEO and SEM optimization to master keyword searches on Google, local and international marketplace optimization, the use of email marketing and Whatsapp marketing for retargeting customers, and providing content that is relevant to the creative product market itself so that all strategies used can expand the market of the creative product itself.

The strategies used in digital marketing in Indonesia (Laila et al., 2024; Mushi, 2024; Sharabati et al., 2024; Ziółkowska, 2021; Jung and Shegai, 2023; Jadhav et al., 2023) are the Utilization of social media as a means of branding and promotion, influencer and KOL (Key Opinion Leader) marketing, SEO, and SEM to increase product visibility on Google, marketplace optimization in local and global E-commerce. Utilization of social media (Wu et al., 2024; Laila et al., 2024; Mushi, 2024; Sharabati et al., 2024; Bruce et al., 2023; Ziółkowska, 2021; Kaur et al., 2022; Jadhav et al., 2023) as a means of branding and promotion is carried out with visual storytelling strategies, hashtag marketing, live shopping and streaming, and encouraging customers to create content with the products purchased. Influencer & KOL (Key Opinion Leader) marketing (Laila et al., 2024; Mushi, 2024; Bermeo-Giraldo et al., 2022; Ziółkowska, 2021) is done by using micro-influencers to increase customer engagement and trust, collaborating with celebrities and KOLs with the appropriate niche to increase product credibility, using affiliate marketing with influencers where they get a commission from each product sold. SEO & SEM (Laila et al., 2024; Mushi, 2024; Jadhav et al., 2023; Sembiring et al., 2022) to increase product visibility on Google using SEO strategies for website optimization and product description with relevant keywords such as “unique handicrafts,” “quality local shoes,” and “minimalist home decor,” SEM by using Google Ads to increase traffic and sales conversions, Google My Business by registering the business to increase local visibility. Marketplace optimization in local and global E-commerce (Ma and Gu, 2024; Sharabati et al., 2024; Gao et al., 2023; Hokmabadi et al., 2024) uses the product title and description optimization strategies, flash sale, and cashback features, increasing reviews and ratings, and advertising within the marketplace, such as Shopee and Tokopedia ads (Figure 11).

How is it implemented, what are the challenges, and what is the success rate of digital marketing in Indonesia?

Digital marketing implemented in Indonesia has several channels, namely social media, Search Engine Marketing (SEM), Influencer marketing, email marketing, and content marketing. All types of digital marketing are carried out using technology that is appropriate for the creative product audience. The challenges of using digital marketing for creative products in Indonesia include varying levels of digital literacy, resulting in a gap among creative product practitioners in utilizing digital marketing, competition, and advertising costs that significantly drain business revenues, as advertising costs require a considerable amount of time, leading to social media algorithms that favor advertised businesses, Infrastructure challenges also arise because not all regions in Indonesia have internet access. There are issues of trust and privacy, as some consumers remain hesitant to provide personal data when making online purchases. Despite these challenges, the success rate of digital marketing among creative product practitioners has shown consistent growth, particularly in the F&B, fashion, and online education sectors. UMKM Go Digital is a government program aimed at helping thousands of small businesses enter the digital market. Additionally, campaigns with a localized approach (localization of language, culture, and narrative) are more successful than a one-size-fits-all approach.

The future research of this study is the adoption of digital technology by MSMEs, which further focuses on its application, the role of influencer marketing in digital marketing, differentiation of creative products in digital marketing, digital marketing, and global market expansion and security, and trust in digital marketing that focuses on cybersecurity (Islam et al., 2024; Gündüzyeli, 2024; Altamira et al., 2023; Matosas-López, 2021). Meanwhile, in realizing this future research, several recommendations are needed in digital marketing that must be carried out by MSMEs, namely Strengthening MSME Digital Literacy, Optimizing Social Media, SEO and SEM Strategies to Increase Visibility, Utilizing Influencers and KOLs, Increasing the Use of E-commerce and Digital Platforms, Integrating Cultural Narratives in Digital Campaigns, Evaluation and Analysis of Digital Marketing Performance which are explained in Tables 7–9 and Figure 12.

The implications of digital marketing on creative products empower creators and MSMEs to build personal brands without the need for significant capital, enabling them to reach national and international markets through e-commerce and social media. In digital marketing, narrative becomes a branding strength because creative products are not only valued for their function, but also for the stories and values behind them. Digital marketing enables businesses to collect data as a new asset, allowing them to measure the effectiveness of their campaigns and personalize content to align with their audience.

There are several limitations to digital marketing for creative products, including limited access to technology and literacy, competition in the creative product market itself, visual and product representation constraints, and algorithm volatility. In terms of limited access to technology and literacy, many creative entrepreneurs in rural areas do not have adequate access to digital marketing training, and skills such as SEO, graphic design, or paid advertising remain a challenge. Competition in the creative market itself is highly competitive, making it difficult to stand out among numerous creative products. Visual and product representation challenges arise because not all practitioners have photography or videography skills. Algorithm volatility also occurs because digital platform algorithms frequently change, making content visibility unstable, causing small businesses to suddenly lose reach without understanding the cause.

This research has future research directions, including the application of AI and technology for automated content creation to assist businesses. Digital education and inclusion require strengthening digital literacy among creative economy actors, particularly in non-urban areas. Community-based campaigns hold promise for the future of creative digital marketing when brands engage communities (co-creation), where collaboration among local creators can foster a mutually supportive ecosystem in the digital world. Sustained research requires more studies on the effectiveness of digital marketing strategies in specific creative subsectors (e.g., ethnic fashion, bamboo crafts, digital art). Measurement should not only focus on sales but also on social impact, cultural identity, and sustainability.

Based on the explanation of the research above, it can be concluded in the following Figure 13.

Based on the image of the research results above, it is concluded that in marketing creative products, several appropriate strategies are needed to know what marketing is used and what the purpose is so that the marketing carried out can expand the market for the creative product itself. The creative product must have several criteria: innovation and creativity, cultural value, differentiation, and a specific market. In marketing creative products, several parties are involved, namely MSMEs, the government, digital platforms, consumers, educational institutions, and business incubators. Although the strategy is known, there are still challenges for MSMEs in marketing their creative products: a lack of understanding of the creative product itself, challenges in adapting digital technology in the digital marketing of creative products, and lack of innovation in making the creative product itself. Challenges are always there, but MSME actors can overcome them using more personal strategies; in other words, the most mastered strategy can be in the form of utilizing social media if only social media can be used, utilizing influencers when social media is adequate, and using e-commerce platforms to reach target markets that are not touched on social media.