Marketing serves an important role in the business process, by increasing brand awareness, improving its standing and bringing in more customers. In the digital age, digital marketing is the new format of marketing which has taken the world by storm.
In general, digital marketing can be defined as any form of marketing of products or services that takes place using digital technologies, online and offline.
Digital marketing is growing by leaps and bounds and is used across industries by businesses of all sizes and for all types of consumers. Since more people are using digital devices, there is unlimited potential for digital marketing, especially in comparison to older forms of marketing.
The methods used for digital marketing include social media, search engine optimization, content marketing emails, SMS, display advertising and more on devices such as computers, tablets, and mobile phones.
The global digital marketing market is expected to reach a value of around $280-310 billion by 2020, growing at a CAGR of 13 percent. At a global level, North America dominates the market accounting for 39-40 percent of the total digital marketing market.
The growth of the digital marketing industry can be attributed to an increasing consumer base with more people using digital facilities, and more industries making use of digital marketing. However, there are constraints in the market, including increasing competition in the field and difficulties in accurately calculating return on investment from digital marketing.
Digital marketing has great importance in the present business world because of the following reasons:
Greater Access to Target Audience
Every business has a specified target audience that will most likely be interested in their product/services. Digital marketing is a handy tool to optimize the marketing process, ensuring that the desired target audience is specified upon.
People across the world spend an immense amount of time online, whether it’s for work purposes, accessing social media or researching topics on search engines.
Components of digital media such as social media marketing, and search engine optimization target customers that are searching for relevant services, thereby boosting chances of sales by reaching the target audience directly.
Better Opportunities for Small Businesses
At a time when large corporations with massive funding tend to hog the market, digital marketing levels the playing field. The comparatively low costs involved in digital marketing and its easy accessibility even from remote locations make digital marketing an ideal choice for all sizes of businesses, whether small, medium or even micro.
An effective digital marketing strategy can help a business in branding, bringing in customers and overall boost profits. By giving smaller businesses a fighting chance, it’s easier to avoid ending up in a monopoly of big brands.
Typically, marketing has been a one-way road; businesses put out advertisements and consumers consider their options and make a decision. However, digital marketing is a game changer, as the communication line between the consumer and business can now easily become a two-way conversation.
Whether by investing in artificial intelligence bots or having an in-house customer service team, opening means of feedback from the consumer has a significant impact on brand value and customer relations.
Any given customer is more likely to remember and revisit a business which provided a personal touch and took in feedback.
The entire process of digital marketing is relatively cost-effective, as all the marketing activities are carried out digitally. There are no costs for expensive hoardings or ads in magazines.
Through digital marketing, you have a better chance of reaching your target audience without spending an excessive amount of funds on formal marketing methods.
Also, digital marketing is available piecemeal as well, allowing business to select which forms of digital marketing they want to employ at which time. As and when required, digital marketing can easily be scaled up.
Apart from simply identifying the target audience, digital marketing also allows personalization of the ads or messages to fit the consumer, in a process known as hyper-personalization.
The concept of personalization of emails, messages, and transactional information is not new, but hyper-personalization goes a step further, by monitoring the data entered by a user and responding quickly and effectively in a personalized manner.
Consumers these days are focused on accuracy and easy or access, both aspects where hyper-personalization has great potential.
Digital marketing is the next generation in marketing and has immense importance in the present and future business world. There are a variety of forms of digital marketing, and the goals include establishing a brand presence, identifying customers, creating leads, closing leads and boosting customer relations.
At a time when businesses are facing immense competition, digital marketing is a low-cost opportunity for any business to boost its success. Due to the versatility of the field, businesses have the option to choose the specific digital marketing services required.