Importance of Digital Marketing in 2020

What is Digital Marketing

Digital Marketing
Digital Marketing

This blog post can give you knowledge about what is digital marketing and the importance of digital marketing.

Before going to know about digital marketing and you need to know what is Marketing?

Marketing:

Everyone will say Marketing is selling goods/services, but personally I don’t think so it is correct.

The process of understanding your customers, building and maintaining a relationship with them is called Marketing.

Marketing is the toughest skill, without Marketing, no other departments can sustain itself.

Every business will have a Marketing and Sales department, and these two departments should have a unified approach to making success in an organization.

Business has only two functions – Marketing and Innovation

Milan Kundera

Marketing is about starting a conversation which they already have in their mind and it is about the psychological understanding of customer needs.

The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself.

Peter F. Drucker

Marketing is of two major types

  • Offline Marketing
  • Online Marketing

Offline Marketing means Marketing in a traditional way like radio, newspaper, television, attending conferences…etc.,

Online Marketing means Marketing in a Digital way is also called Digital Marketing.

  • Content Marketing
  • Search Engine Optimization
  • Search Engine Marketing
  • Social Media Marketing
  • Email Marketing
  • Pay-Per-Click Advertising (PPC)
  • Affiliate Marketing
  • Instant Message Marketing

Welcome to Digital Era

Now you will have a question what is the need for Digital Marketing? I will tell you about a survey conducted recently.

In 2012 the internet users 2.4 Billion internet users where there, can you imagine where the numbers are now, see the fig below

Active users on Internet
Active users on the internet

You can’t succeed only by talent, you need to update and upgrade yourself to sustain. Ex Yahoo refused to buy google in 1998, and another opportunity came to buy in 2002 but yahoo refused, finally yahoo sold to Verizon.

So if you don’t update yourself you cannot sustain in this world.

By seeing this drastic growth of internet users, now most of the companies are advertising on digital platforms. If you noticed you may know at election time even political parties started advertising in digital platforms.

Can you guess how much Facebook got revenue from ads the previous year? $17.4 billion this is 19% higher than in 2018. Do you need to know the reason behind this huge revenue? The reason as expected the growth of users on Facebook.

List of Facebook users in leading countries.
List of Facebook users in different countries

Benefits of Digital Marketing:

  1. Cost-effective than traditional marketing.
  2. Targetting the right customer is easy.
  3. The conversion rate is more.
  4. Everything is transparent to the Advertisers.
  5. Better Interactions

1. Cost-Effective

When you advertising through offline marketing the cost which you spent to reach 1000 audience will be at least 2 times higher than the cost you spending to reach the same set of the audience through digital marketing.

According to Gartner’s spend report, up to 40% of respondents told they are getting considerable savings by using digital marketing than traditional marketing. And further, it says over 28% of people decided to move to digital marketing from traditional marketing.

You know one thing HubSpot declares that CPL (Cost-Per-Lead) is better in Digital Marketing than in a traditional way.

Cost Per Lead ratio
Cost Per Lead

2. Targetting

In television ads, no one knows that ad is targetted to whom, whereas in Digital Marketing you can give a set of conditions and you can specify to whom these ads should be shown.

I will tell an example: I am selling a jewel that can be worn by 25-35 age groups of ladies, and those ladies should be from a specific location.

These kinds of targetting cant be done through traditional marketing, for the above scenario the jewel can be easily targeted through Facebook ads using custom audiences.

3. Conversion

As you have seen how you can target a product to a particular person, then obviously the revenue will be more since the product is being advertised to the right potential audience.

Google confirms that companies using digital marketing strategies have 2.8 times better revenue than those who do not.

As the company getting more revenue means they will be having a better chance of investing and expanding their business than those who are not using digital /marketing strategies.

4. Transparency

Can you guess, in previous paras, I have told that you can target the ads to specific people, based on their age, gender, city, interset and so-on.

How you will know, whether the conditions which are given during the creation of Ads are followed fully or not.

If at all you are posting an ad for 100rs, you can see all the reports in ads manager, like how many persons see this ad, how man person reacted and engaged in it.

5. Interactions

One of the main reasons why companies are started using Digital marketing instead of other marketing channels is using the Digital Marketing Tools the companies can easily interact with the customers in real-time.

Interactions with the customers by using chatbots, you can understand the exact need of your target audience. Whenever your customer is engaged and given the answer that he need then the trust and authenticity will get increase and it can change that audience to a potential buyer.

By collecting the valuable questions asked by the customers at first you ca plan the next move in a way that will give a better experience for the user.

Conclusion

As you can clearly see that both B2B and B2C can effectively get benefitted from digital marketing strategies than the traditional way. Digital Marketing involves practices like SEO, SEM, Paid Advertising, Content Marketing, Email Marketing, Social Media Marketing. The whole world is moving digital, update yourself and you cant sustain.

If you learn how to use Digital Marketing tools then you can easily use digital Marketing Strategies in your business.

Over 2.4 Billion peoples are using the internet today, so the traditional way of marketing will not work anymore, swift to Digital Marketing Strategies to get more ROI

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