The Need to Know: What is Digital Marketing
In 2007, Steve Jobs took the stage at the Macworld convention to introduce a product that would change the world: The First iPhone. But it wasn’t just the product itself that made history; it was how Jobs marketed and presented it.
Apple’s marketing campaign for the iPhone was masterful. They positioned the iPhone not just as a phone but as a revolutionary device that combined entertainment, communication, and internet browsing this is the message they conveyed via commercials, billboards, and media coverage creating a buzz that made the iPhone the most anticipated product launch of the year.
The lines outside Apple stores on launch day were unprecedented. People camped out for days to be among the first to get their hands on the iPhone.
This moment underscores the power of an effective digital marketing strategy and putting a message, or product in front of your to be customers.
What is digital marketing
Digital marketing is the use of digital channels to promote and sell products and services. It encompasses a wide range of online tactics, including social media, email, search engines, and other websites. Digital marketing allows businesses to reach and engage with their target audience effectively in the online space
The history of digital marketing began in the 1990s with the advent of the Internet and the development of the Web 1.0 platform. This era marked the transition from traditional marketing methods to digital ones, as businesses started to recognize the potential of the Internet as a new marketing channel.
Utilizing the internet, social media, search engines, websites, email, and other digital tools, businesses can engage with current and prospective customers, build brand awareness, and drive sales. Unlike traditional marketing, digital marketing offers the advantage of reaching a global audience, tracking and analyzing results in real-time, and adjusting strategies quickly to optimize performance.
It’s an essential component of today’s marketing landscape, enabling businesses to connect with their audience in a more personalized and cost-effective manner, while also adapting to evolving consumer behaviors and technological advancements.
How Digital Marketing Works
Digital marketing works by using a variety of online channels, tools, and strategies to reach and engage potential customers. Here’s a breakdown of how it functions:
- Understanding the Audience: Before any campaign, it’s crucial to identify and understand the target audience. This involves researching their preferences, behaviors, and online habits, you want to understand what the market and consumers desire and the best way to show them you have something they desire or persuade them.
- Content Creation: Based on the audience’s interests, relevant content is created. This could be blog posts, videos, infographics, or any other type of content that would appeal to the target demographic, this part depends on your goals when marketing.
- Choosing the Right Channels: There are multiple online channels available, such as search engines, social media platforms, email, and more. Depending on where the target audience spends most of their time, marketers select the most effective channels.
- Begin Campaign & Track: Once you have your campaign ready you, publish your advert or website, newsletter, etc on your chosen digital channel. Now you track results this is one advantage that digital marketing has over offline marketing, you can analyze the data and based on this make adjustments, and you use this feedback loop to review your campaign to make optimizations if needed. Different strategies have different goals your digital marketer will set KPIs to indicate if your campaign is doing well.
Key Performance Indicators (KPIs) in Digital Marketing for Businesses
A key point to remember is that digital marketers use key performance indicators (KPIs) just like traditional marketers. KPIs are quantifiable ways that companies can long-term performance of marketing and compare their efforts to their competition. Areas of measurement include corporate strategies, financial goals and achievements, operational activities, and even marketing campaigns so here’s a list of the common goals and objectives of digital marketing for a business.
Increase Brand Awareness
– Explanation: Making more people aware of the brand and its values.
– Why?: Greater brand recognition leads to trust and a larger potential customer base.
– Common Channel/Strategy: Social Media Marketing, utilizing platforms like Facebook and Instagram.
Driving Sales and Revenue
– Explanation: Directly boosting the sales of products or services.
– Why?: Immediate increase in revenue and profitability.
– Common Channel/Strategy: Pay-Per-Click Advertising, like Google Ads.
Generating Leads
– Explanation: Attracting potential customers and gathering their contact information.
– Why?: Creates a pipeline for sales and nurtures future customers.
– Common Channel/Strategy: Content Marketing with lead magnets (e.g., eBooks, webinars) or PPC campaigns with CTAs designed to capture new leads.
Improving Customer Engagement
– Explanation: Interacting with customers to build a relationship.
– Why?: Engaged customers are more likely to be loyal and make repeat purchases.
– Common Channel/Strategy: Social Media Engagement and Email Marketing.
Build Customer Loyalty and Retention
– Explanation: Encouraging customers to continue choosing your brand and form a community.
– Why?: Retained customers are more profitable over time and increase LTV.
– Common Channel/Strategy: Loyalty Programs and Personalized Email Campaigns.
Enhancing Market Reach
– Explanation: Reaching new customer segments or geographical areas.
– Why?: Expands the potential customer base and revenue opportunities.
– Common Channel/Strategy: Influencer Marketing and International SEO.
Improving Search Engine Rankings
– Explanation: Achieving higher visibility in search engine results.
– Why?: Increases organic traffic and reduces reliance on paid advertising.
– Common Channel/Strategy: Search Engine Optimization (SEO).
Increasing Website Traffic
– Explanation: Bringing more visitors to the company’s website.
– Why?: More traffic can lead to more conversions and sales.
– Common Channel/Strategy: Mainly SEO and digital ads but multiple channels can affect this.
Gathering Customer Insights and Data
– Explanation: Collecting data on customer behavior and preferences.
– Why?: Enables more targeted and effective marketing strategies.
– Common Channel/Strategy: Data Analytics depending on the b software and Customer Feedback funnels.
Each of these objectives plays a crucial role in shaping a comprehensive digital marketing strategy, contributing to the overall growth and success of a business in the digital space now it’s about understanding the various channels to reach your goals.
Types of Digital Marketing Channels
In the ever-evolving digital landscape, businesses have a plethora of channels at their disposal to connect with their audience. Understanding the purpose of each digital marketing channel is crucial for crafting a strategy that resonates with your target market and achieves your business goals.
Search Engine Optimization (SEO): Optimizing websites and content to rank higher in search engine results pages (SERPs) to increase organic (non-paid) visibility. Think about it when you search for something let’s use “best computer of 2023” as an example you’ll rarely leave the first page of your chosen search engine and usually click one of the first 3 links.
Pay-Per-Click (PPC) Advertising: Paid advertisements that appear on search engines like Google or Bing. Advertisers pay a fee each time their ad is clicked. Paid media would also fall into this bracket and is similar it’s just targeted ads on social media platforms that appear in front of target audiences.
Content Marketing: Creating and distributing valuable, relevant, and consistent content to attract and engage a target audience. This includes blog posts, e-books, whitepapers, and more. These act as lead magnets which can convert prospects or make them warm leads in your funnel.
Social Media Marketing: Using platforms like Facebook, Instagram, Twitter, LinkedIn, Pinterest, and Snapchat to promote products, services, or brands. For example, the TikTok post below is a form of video marketing as the company Lazy Pot Noodles has made a video on how effective their small pot is.
https://www.tiktok.com/@lazypotnoodle/video/7246297126945246506
Email Marketing: Sending targeted messages to a group of people via email, which can include newsletters, promotions, or personalized offers.Sounds easy right? Well on average, email drives an ROI of $36 for every dollar spent, higher than any other channel. In my experience this is true I have copywriting experience and paid about £100 for email marketing software and in my first campaign achieved £4,000 in sales.
Affiliate Marketing: Promoting other people’s products or services and earning a commission for each sale or action made through one’s referral. When you google search the best PC in 2023 and Techrader has their top pick with links that’s a prime example.
Online Public Relations (PR): Managing a brand’s online reputation and building relationships with online media, bloggers, and influencers. Spotify’s Wrapped Campaign is a great example This end-of-year event presents users with a summary of their listening habits in visually appealing graphics, which can be shared on various social media platforms. It’s a highly personal and shareable campaign that has gone viral.
Display Advertising: Using visual ads (like banners) that appear on websites or apps, targeting users based on behavior, demographics, or interests.
Video Marketing: Creating and promoting video content on platforms like YouTube, Vimeo, or embedded on websites. Carwow is is company that comes to mind and does this well, they have Matt review cars, race cars, and discuss anything car related it’s their twist on Top Gear and it works they have over 8 million YouTube subscribers.
Influencer Marketing: Collaborating with individuals who have a significant online presence and influence to promote products or services. This is everywhere nowadays and is not a new form of marketing but is typically reserved for companies with larger budgets.
Mobile Marketing: Reaching audiences through mobile devices using SMS marketing, mobile apps, and mobile-optimized websites. SMS Marketing does require the user to give their details as in the UK it is illegal to send unsolicited SMS but below is an example when you order food such as Papa John’s, you then will start to receive texts about upcoming deals, etc.
Retargeting/Remarketing: Displaying ads to individuals who have previously visited a website, encouraging them to return.
Native Advertising: Ads that match the look, feel, and function of the media format in which they appear, often found on social media feeds or as recommended content on a webpage.
Webinars and Live Streaming: Hosting online seminars or live sessions to engage with a larger audience in real time. Adobe does this well as they know they can funnel users to eventually buy their products.
Podcast Marketing: Promoting products, services, or content through podcasts, either by hosting one’s own or advertising on others. Usually, a person will go on a podcast to advertise their services or product or the podcast might be sponsored so only specific brands can appear.
Each of these channels offers unique advantages and can be used in combination to create a robust digital marketing strategy that meets your business objectives and connects with your audience in meaningful ways however some may not work as well depending on if you are targeting B2B or B2C.
B2B V B2C Marketing
B2B (Business-to-Business) and B2C (Business-to-Consumer) digital marketing refer to the target audience a business is trying to reach with its marketing efforts. While both use similar digital channels and tactics, their strategies, goals, and content often differ due to the distinct nature of their audiences. Here’s a breakdown:
B2B Digital Marketing (Business-to-Business):
Definition: B2B digital marketing targets other businesses and organizations as potential customers.
Sales Cycle: Typically longer and more complex, often involving multiple decision-makers.
Content: Tends to be more informational and educational. Whitepapers, case studies, webinars, and industry reports are common content formats.
Channels: LinkedIn is a primary social media channel for B2B, but others like Twitter or industry-specific forums can also be relevant. Email marketing, especially newsletters and nurture campaigns, plays a significant role.
Relationships: Emphasis on building long-term relationships and trust.
Decision Drivers: ROI, efficiency, expertise, and long-term value are primary considerations.
B2C Digital Marketing (Business-to-Consumer):
Definition: B2C digital marketing targets individual consumers.
Sales Cycle: Generally shorter, often with a single decision-maker.
Content: More likely to be entertaining, emotional, or promotional. Videos, infographics, blogs, and interactive content are popular.
Channels: B2C brands often leverage platforms like Facebook, Instagram, Pinterest, and Snapchat. Influencer marketing is also more prevalent in B2C.
Relationships: While long-term loyalty is desired, the focus might be more on individual transactions.
Decision Drivers: Price, emotion, personal benefits, trends, and brand loyalty are key factors.
In essence, while both B2B and B2C digital marketing utilize online channels to reach their audience, the approach, messaging, and tactics can vary significantly based on the nature of the audience and the buying process.
Benefits of digital marketing
- Cost-Effectiveness: Compared to traditional marketing methods like TV, radio, or print advertising, digital marketing campaigns, especially like content marketing or SEO, can be more cost-effective, delivering a better return on investment (ROI).
- Measurable ROI: Digital marketing platforms provide detailed analytics, especially paid advertising channels like PPC. This allows businesses to see the exact return on their investment, helping them allocate their budget more effectively.
- Flexible Budgeting: Digital marketing campaigns can be adjusted in real time based on performance. If a campaign isn’t delivering the desired results, businesses can quickly pivot or reallocate funds to more effective strategies.
- Targeted Spending: With advanced targeting options, businesses can ensure their ads are seen by their specific target audience, reducing wasted spend on uninterested parties.
- Increased Sales: Effective digital marketing strategies can directly lead to increased online sales, especially with tactics like retargeting, which reminds potential customers of products they’ve viewed or added to their cart.
- Global Reach: Digital marketing allows businesses to tap into new markets and audiences globally at a fraction of the cost of traditional international marketing efforts.
- Reduced Overhead: Digital campaigns can often be managed with smaller teams, reducing overhead costs. Additionally, digital assets are typically less expensive to produce and distribute than physical assets.
- Scalability: As results are achieved, businesses can incrementally increase their digital marketing spend, ensuring that growth can be managed and budgeted for effectively.
In essence, digital marketing provides businesses with a financially efficient means of reaching and converting customers, with the added benefit of precise measurability and scalability
How to create a digital marketing strategy
For small businesses and beginner digital marketers, digital marketing can be daunting. However, you can create an effective digital marketing strategy to increase brand awareness, engagement, and sales by using the following steps as guidelines.
- Set SMART Goals: Start by defining clear, specific, measurable, achievable, relevant, and timely goals. These goals should align with your overall business objectives and provide a clear direction for your digital marketing efforts.
- Identify Your Audience: Understanding your target audience is crucial. Determine their demographics, interests, online behaviors, and preferences. This knowledge will guide your choice of digital channels and the type of content you’ll create.
- Create a Budget: Based on your goals and the chosen digital channels, allocate a budget that allows you to effectively reach your audience without overspending. Consider the costs associated with different channels and the potential ROI they offer.
- Select Digital Marketing Channels: Choose channels that align with your goals and audience. Options include SEO, PPC, social media, content marketing, email marketing, and more. Each channel serves different purposes and reaches audiences in unique ways.
- Develop and Implement Campaigns: Create campaigns tailored to each channel. This might involve developing SEO-friendly content, setting up PPC campaigns, crafting social media posts, or designing email marketing campaigns. Ensure that your content resonates with your audience and reflects your brand identity.
- Refine Your Marketing Efforts: Utilize analytics tools to track the performance of your campaigns. Analyze data to understand what’s working and what isn’t. Use these insights to refine your strategy, making adjustments to improve effectiveness and ROI.
- Stay Flexible and Adapt: The digital landscape is constantly evolving. Stay informed about new trends, technologies, and changes in consumer behavior. Be ready to adapt your strategy to new opportunities and challenges.
Remember, the key to successful digital marketing is a well-planned strategy, a deep understanding of your audience, and the flexibility to adapt to changing market conditions.