What is Digital Marketing? It has many names, a multitude of strategies and it looks good on every brand. But Digital Marketing isn’t the riddle it might seem to be. This is Paramount’s Official Introduction to Digital Marketing. Prepare to be informed.
SO What is Digital Marketing?
Very simply put, Digital Marketing refers to the application of marketing principles and techniques via electronic media and more specifically the Internet. The terms Digital Marketing, Internet marketing and search marketing – and even “SEO” – are frequently interchanged, and can often be considered synonymous.
Digital Marketing is the process of marketing a brand using the Internet. It includes both direct response marketing and indirect marketing elements and uses a range of technologies to help connect businesses to their target customers.
By such a definition, Digital Marketing encompasses all the activities a business conducts via the worldwide web with the aim of attracting new business, retaining current business and continuing to develop and evolve its brand identity.
Why is Digital Marketing important?
When implemented properly, the return on investment (ROI) from Digital Marketing can far exceed that of traditional marketing strategies. Not to mention, the data and analysis that come as a result of digital marketing efforts help businesses make intelligent business decisions.
Whether you’re a “brick and mortar” business or an organization operating purely online, the Internet is a force that can no longer be ignored. It is now an almost limitless means to reach literally millions of people every year. Digital Marketing at the forefront of a redefinition of way businesses interact with their customers.
The benefits of Digital Marketing over traditional marketing
The nature of the internet means businesses now have a truly global reach. While traditional media costs limit this kind of reach to huge audiences, Digital Marketing opens up new avenues for smaller businesses, on a much smaller budget, to access potential consumers from all over the world.
Internet marketing allows the marketer to reach consumers in an incredible variety of ways and enables them to offer a wide range of products and services. Digital Marketing entails, among other things, information management, public relations, customer service and sales. With the range of new technologies becoming available all the time, this scope of what’s possible with digital marketing can only grow.
Internet marketing is able to, in ways never before imagined, provide an immediate impact.
Imagine you’re reading your favorite magazine. You see a double-page advertisement for some new product or service, maybe Mercedes’ latest luxury sedan or Apple’s latest iPhone offering. With this kind of traditional media, it’s not that easy for you, the consumer, to take the step from hearing about a product to actual acquisition.
With Digital Marketing, it’s easy to make that step as simple as possible. Within a few quick clicks you could have booked a test drive or ordered the iPhone. And all of this can happen regardless of normal office hours. Effectively, Internet marketing makes ANY business hours 24 hours per day, 7 days per week for every week of the year.
By closing the gap between providing information and eliciting a consumer reaction, the consumer’s buying cycle is speeded up and advertising spend can go much further in creating immediate leads.
Whereas traditional marketing is largely about getting a brand’s message out there, Digital Marketing can actually facilitate conversations between companies and consumers. With a two-way communication channel, companies can feed off of the responses of their consumers, making customer service standards more dynamic, adaptive and fulfilling.
Demographics and targeting
Generally speaking, the demographic possibilities of the Internet are a marketer’s dream. Internet users, considered as a group, have greater buying power and could perhaps be considered as a population group skewed towards the middle-classes.
Buying power is not all expansive demographics can provide though. The nature of the Internet is such that its users will tend to organize themselves into far more focused groupings. Savvy marketers who know where to look can quite easily find access to the niche markets they wish to target. Marketing messages are most effective when they are presented directly to the audience most likely to be interested, at the times they are most likely to engage with them. The Internet creates the perfect environment for niche marketing to targeted groups.
Closed Loop Marketing requires the constant measurement and analysis of the results of marketing initiatives. By continuously tracking the response and effectiveness of a campaign, the most innovative and adaptive marketers are able to be far more dynamic in accomplishing client goals.
With Digital Marketing, responses to various strategies can be analyzed in real-time and campaigns can be tweaked continuously. Combined with the immediacy of the Internet as a medium, this means that there’s minimal advertising spend wasted on less than effective campaigns.
Not to mention: Maximizing marketing efficiency from Digital Marketing creates new opportunities to seize strategic competitive advantages.
The combination of all these factors results in an improved ROI and ultimately, more customers, happier customers and an improved bottom line.
NEXT UP IN THE DIGITAL MARKETING 101 SERIES:
Having now identified the “why” of Digital Marketing, Part 2 in the Digital Marketing 101 series will look at the “how”. We’ll be exploring some of the weaponry in the our Digital Marketing team’s arsenal, and looking at how these tools should be used to target customers.
SEO, SEM, PPC, DA, BR… – the acronyms are never far behind. We’ll take a brief look at each, defining what they are and giving some guidance in terms of which tactic to use in a given situation to ensure optimum ROI on advertising spend.
Later on, we’ll examine each of these tactics more closely and see just how they are used to produce results.