A Detailed Guide on What is Digital Marketing

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This exclusive digital marketing resource guide is full of digital marketing acumens and tactics for business owners, digital marketing and working professionals, students, and anyone else looking to sharpen their contemporary marketing skills.

It covers the fundamentals of digital marketing, latest tools, growth opportunities, and its key drivers. Along with this, it also includes meaningful insights from digital marketing professionals.

So, let us begin by understanding the basics of Digital Marketing.

What is Digital Marketing?

Digital Marketing is an amalgamation of different marketing efforts that helps businesses in achieving their business objectives and goals through online channels.

The majority of the audience these days is surfing on the internet, spending more time on websites & social media platforms and prefer to read emails. Thus, marketers have shifted their energies towards leveraging more of digital channels over traditional marketing. This is why 28% of marketers worldwide recognized websites, mobile apps, and video advertising as some of the most common channels for spreading ad messages, brand promotion, and generating potential leads.

Not only this, but in the coming five years, online advertising worldwide is predictable to propagate at a CAGR of 8.4%, and by the end of 2023, it is expected to reach $160.8B.[i]

Objectives of Digital Marketing

The power of digital marketing is to such an extent that it can help a business to penetrate and reach out to target consumers no matter wherever they are in their digital buying journey. Some of the prominent objectives to deploy digital marketing are:

  • Conduct secondary research about your target audience
  • Generate potential leads
  • Increase revenues and sales numbers
  • Tap new target audiences
  • Promote new and existing products and services
  • Establish Brand Awareness and Brand recall
  • Increase user engagement
  • Ensure customer satisfaction by understanding consumers’ needs

Traditional Marketing vs Digital Marketing

Traditional Marketing Digital Marketing Reasons for a shift from Traditional Marketing towards Digital Marketing
The scattered audience makes targeting difficult Wide opportunity to target specific audience Advanced Targeting

 

When compared to traditional marketing, digital marketing offers multiple ways to target niche and precise audiences based on the desired demographics.

Measuring real-time results is difficult Easy to calculate real-time results It’s More Effective

 

Organic search results give a brand 750% more leads and conversions when compared to leads from traditional media.

Slow & time consuming Fast, efficient & cost-effective Higher ROI

 

82% of businesses report sighted a higher ROI after implementing a full digital strategy to their business.

Difficult to establish real-time communication Real-time conversation & feedback is possible Global audience and reach

 

A majority of consumers nearly 97%[ii] make use of online media and Google to research products they intend to buy prior to making a purchase decision.

Customization of the ad is not possible Optimization of the ad is possible Less Expensive

 

Average costs per lead cost 61% less through inbound digital marketing channels when compared to traditional outbound media

Strategic Process for Digital Marketing

When a company plans to deploy digital marketing for achieving the above-mentioned objectives, they follow a four-step cycle demonstrated below:

Digital Marketing Latest Tools & Techniques

For successfully leveraging each step mentioned in the above strategic process, marketers use a set of digital marketing tools to smoothen their process. List of some of the most popular digital marketing tools are mentioned below:

 

 

Elements of Digital Marketing

There are several digital marketing components that a business can add to their strategy and maximize the overall returns. The below RACE graph gives a roadmap for marketers to bring in repeat purchases.

Below mentioned are the digital marketing elements that every company use to reach, act, convert, and engage their audience:

  1. Search Engine Optimization

SEO is known as the foundation of successful digital marketing campaigns ad it helps in boosting the overall rankings of online search results leading to increased leads and conversions.

 

  1. Social Media Marketing

Social media marketing is one of the most powerful ways through which businesses (no matter which size) can directly reach out to their prospects and customers. When rightly done, social media marketing can list down multiple benefits for your business including brand awareness, recall, customer engagement, leads, and conversions.

  1. Content Marketing

Content Marketing is a key driver of any organization’s digital marketing strategy which desires to keep their audience hooked on various platforms. It can be defined as delivering valuable and relevant content for a defined audience to increase the audience’s engagement, in turn, promoting profitable customer actions.

  1. Email Marketing

Email marketing is the firmest and cost-effective technique of reaching out to the firm’s target prospects and customers. It helps in sending personalized promotional content as newsletters to potential customers. This way of marketing also helps in nurturing customer relationships via reaching new potential audience and retaining existing customers.

 

  1. Mobile Marketing

Mobile marketing is a platform used by businesses to appeal and capture active mobile device users. Today marketers use mobile marketing to send personalized and time-sensitive information, ads, and messages to engage with the right audience. There are multiple types of mobile marketing strategies that are highly popular today such as app-based marketing, in-game ad marketing, QR codes, SMS marketing, email marketing, and mobile search ads. Many marketers test and optimize mobile ads by using KPIs like user engagement, acquisition, and customer service.

Digital Marketing Case Studies

Element   Goal Tactics Used   Optimization Results
A popular Food Chain  for SEO Make the website search-friendly, maximize visibility and increase traffic, content promotion. Developed site-wide keyword strategy, URL strategy, fixed SEO issues, promoted SEO friendly content. Website and Content development are key to improve visitors count, URL strategy is helpful in SEO. 87% increased mobile traffic, 22% increased website traffic, and 39% increased recipe sharing.
Popular Software Company for Content Marketing Increase blog referral

 

traffic

Made exit-intent popup asking a Yes or No question about redirecting the user to blog content. The brand was aware of the choices of content which their target audience was looking for and they made sure that the popup appears to the users who spend at least 10 seconds on the website. 5.47% CTR was observed on their retargeting ads which increased the blog referral traffic by 58%
The popular educational platform on Facebook To reduce lead cost & cost per click, Improve the Click-through rate, result rates. Gave more information in Lead Forms and experimentation with Ad text and Creatives The brand added its course highlight features in Lead forms along with that, it added benefits in the Ad text. Reduced the lead cost by 61%, CTR rate was improved by 44% and CPC was lowered by 46%
Popular Educational platform for Email Marketing Improve the Open rates, CTR and page conversions and to Lower down number of mailers Experimentation with subject lines, headlines, punch lines along with different themes. Kept on using different subject lines including keywords like Invitations, Salary hike, along with personalization.

 

For CTR, theme-based headlines and a punch line in tabular format for mailers. Unique features and subheadings were used for landing pages.

Open rates were improved by 40%. CTR was improved by 50% and Page conversions increased by 50%. The overall mailer cost was reduced by 20%.

 

Growth and Drivers of Digital Marketing

Digital marketing stats suggest that the global online ad spend will grow to 4.7% when compared with last year’s stats. Also, marketers prefer to shoot ads based on the location of the target audience. One of the prominent reasons for this could be higher ROIs with minimum costs.

A report concerning mobile advertising states that it will propagate with a CAGR of 13.1%. In 2019, it will account for $86.3 B and in 2023, this number will reach $129.5 B. Another attractive fact states that companies look positive for the paid search as it will account for the premier marketing spend ranging up to $37.3 B in the current year.

After paid ads, display advertising ($35.2B) (excluding the video ads) will win the marketer’s attention and next arrives the mobile video advertising ($13.6B) on which the marketers will stay focused. Along with these facts, mobile video ads are expected to win the markets with highest CAGR (19.6%) trailed by mobile paid search (13%), and display ads will have the lowest growth (10.6%) compared to both mobile video ads and paid search ads.

The below graph depicts that brands will leverage internet marketing[iii] over other channels like TV ads and outdoor branding.

3.1 Projection

Riding on the growing popularity of smartphones, widespread availability of 3G/4G services, and a surge in internet penetration in the country; spend on digital advertising in the country is now at 15.5% of the overall advertising spend. The Indian digital advertising industry currently stands in 2019 INR 23,810 (In Thousand Crore) and is anticipated to grow with striking upsurge from the current level to reach INR 36,976 (In Thousand Crore) by 2023.

When compared to the elements of traditional marketing with digital marketing, the industry has witnessed a deep surge in digital marketing starting from 2009-2010 and this trend is not ending anytime soon.

Best practices to follow in a Digital Marketing Campaign

Choose your Target audience

Key Performance Indicators

Based on the objective of the campaign, choose you’re KPIs. It is better to choose at least 2 KPIs.

Measurement of KPIs

Measuring the correct Return on Investment of digital marketing is an essential step. Hence, to obtain precise results, it is necessary to utilize the right tools like Google Analytics, Ahref to analyze the overall performance of digital marketing campaigns. Analysis of the campaign determines current shortfalls in the campaigns and draws a roadmap to overcome any stoppages. Take a leaf out of some of the most popular tools that help in measuring the results of digital marketing campaign:

Optimization

Optimization of any digital marketing strategy is necessary to achieve desired results. Various optimization methods that you must implement are as follows:

  • A/B Testing

A/B testing is used when two versions of a similar ad are sent to different sets of audiences. The objective is to analyze which campaign works well over the other and results in better ROI. It is also known as split testing or bucket testing.

  • Multi-Variate Testing

Multi-variate testing is to determine multiple variations of ads i.e. combination of texts, creatives, targeting for effective results.

  • Geographical Testing

Geographical testing requires to optimize targeting based on regions for example Metro or Non-metro cities etc. This practice helps in obtaining quality results at a minimized cost.

  • Demographics Testing

Demographics include targeting based on factors like age, sex, income, education, employment and race etc. These are necessary for obtaining quality leads and better conversion rates.

Top Companies Hiring Digital Marketing Professionals

Recruiters from top companies such as Capgemini, Amazon, Accenture & top digital agencies such as Ogilvy, WatConsult, GroupM and many more are looking for Certified Digital Marketing Professionals.

Top Digital Marketing Courses

  • Simplilearn’s Digital Marketing Specialist Master’s Program
  • Coursera’s Digital Marketing Specialization
  • Udacity Digital Marketing Nanodegree
  • Digital Marketing Institute’s Masters in Digital Marketing
  • Simplilearn’s Advanced SEO Program

 

Digital Marketing Interview Questions & Mock Test

We have noted down important questions along with answers that are asked in Digital Marketing. If you have an interview coming up recently for Digital Marketing, you can visit this link for more information.

 

Mock Test for Digital Marketing

Take up a mock test to prove your mettle in digital marketing:

References:

[i] PwC: Global Entertainment & Media Outlook 2019–2023 Report

[ii] Gartner Digital Marketing Ad Spend

[iii] Zenith Media


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About the Author

Pratibha Roy

Pratibha Roy

A content specialist by profession, Pratibha has four+ years of experience in writing engaging articles and blogs. She strongly believes in the power of words and equips new ideas with the motive of imparting comprehensive knowledge to the readers. When away from work, she loves reading books with a cup of hot coffee in hand.