More than ever, businesses are implementing digital marketing tactics to reach and engage their target consumers online. Companies are leveraging the popularity of digital platforms to promote their goods and services. Online advertising is cost-effective, offering better insights into consumer preferences, creating effective targeting, and much more. The main objective of any digital marketing tactic is to engage your target audience at the right moment and place, leading to a positive response.
Traditionally, businesses reached their target audience using print advertisements, email blasts, television, radio, and networking events. Most of these are still useful and have great ROI, but digital marketing benefits are becoming more prevalent every day. In fact, according to Zenith, digital media is expected to grow by 9.6% in 2021, totaling $136.3 billion and accounting for 57.6% of all ad dollars. But what kind of benefits can you expect from digital marketing? This article will explore how digital marketing isn't merely optional but essential to modern business.
Better Insights That Help Achieve Optimum Results
How well do you know your target market? What about your customers? Digital marketing analytics lets you measure your success rate over time, taking the guesswork out of determining whether your marketing is working. By measuring your digital marketing campaigns in real-time, you can see which methods were the most popular with your target audience and which drove the most conversions. You can see which tactics are working and which are not and use the insights gained from the process to improve future campaigns.
With digital marketing, you are essentially able to measure each aspect of the performance of an ad. For example, Google Analytics allows you to track stats and information about your marketing website. From the moment the ad is clicked to when the visitor leaves the page. You can determine the number of people visiting your business page, how many sales resulted from the ad, and ultimately, your return on investment (ROI). Information such as location, sex, age, and interests of the visitors is also available and helps build more targeted campaigns or even future products.
Having a breakdown of all of this traffic information allows the business to prioritize its marketing channels. Consequently, you can optimize your marketing budget by investing in the most successful marketing campaigns. However, you must prioritize data relevant to your business, such as the key performance indicators (KPIs). Some of these include cost-per-click (CPC), return on investment (ROI), customer acquisition cost (CAC), and customer lifetime value (CLTV). By tracking these metrics, you can effectively distribute resources to achieve the best outcomes.
Cost-Effective Than Traditional Marketing Methods
Of all the benefits digital Marketing provides, the one that usually gets the most attention is its cost-effectiveness. Compared to traditional marketing methods, digital marketing helps you reduce spending while obtaining more leads. With traditional marketing methods, small-to-mid-size businesses with limited budgets struggle to compete for ad space with larger established companies. Digital marketing essentially allows these small businesses to get more for their marketing budget.
Digital marketing has leveled the playing field as one of the most affordable ways to market your business to your target audience.
When utilizing pay-per-click (PPC) advertising, you get the option to choose your budget. Whether you can only afford $50 or $1000, you can still harness the power of online marketing. The amount you spend will affect how many people you can reach and your campaign's success.
The main benefit of going digital is the low operating cost. By using affordable digital marketing methods, businesses can effortlessly increase their ROI. According to OptinMonster, using email marketing can increase a business' ROI by up to 4400%. Consider that, on average, Facebook advertising costs $7.19 per 1000 impressions. That means a business can market its products and services to over 1,000 people with less than $8 using social media. That same exposure through traditional television advertising may cost thousands of dollars.
Higher ROI and Higher Revenues
Today, more than 70% of people will research a company before deciding to become a customer. That's why digital transformation is so crucial to any company that seeks to thrive in the information age. If your web presence is lacking, a potential customer is much less likely to buy from you.
No matter the type of business, each is founded with one common objective – to derive a return on investment. Tracking your return on investment is essential for any business, irrespective of type. Measuring ROI enables you to determine which marketing tactics are performing successfully.
Earning a good ROI is very challenging in the competitive consumer-driven market. In fact, according to the U.S. Bureau of Labor Statistics (BLS), approximately 20% of new businesses will typically fail in the first two years of inception. However, through proper channels, targeted audiences, and increase in conversion rates, you can see positive ROI growth. You can utilize SEO, social media marketing, and email marketing to generate high conversion rates through quick and effective communication with the consumer.
Through digital marketing, companies can optimize conversion rates to achieve maximum return on investment (ROI). It takes only a couple of clicks to convert a customer online but achieving a consistent, sustainable ROI requires a steady flow of targeted traffic that can convert into leads and sales. It's more instinctive to measure ROI by tracking metrics that tie directly to revenue and profit. This oversimplified view can paint an inaccurate picture of your ROI, but soft metrics like brand impressions and website visitors can help tell the complete story.
Effective Targeting With The Right Audience
Every business is searching for the perfect customer with interests and needs that match its purpose. It's now easier than ever to segment your market since many digital marketing platforms allow you to target a specific audience. For instance, once a visitor clicks on your ad, whether on social media or through a search engine, you can target that visitor with subsequent related ads.
Today digital marketers can analyze all of this data and devise the best strategies for various audiences at different stages of the shopping experience. Essentially, you can target your market with content and offers based on their purchasing stage. For example, you can use email marketing to nurture a lead until the lead is ready to convert to a sale. Because the content a visitor receives factors in their interests and online behaviors, shopping online becomes incredibly satisfying. A huge part of Amazon's success comes from effective targeting.
SEO is another powerful digital marketing tool with nearly infinite possibilities. By optimizing your site content for search engines, you can reach a wider audience. Using relevant keywords that describe your product or service in detail can help you bring more targeted traffic to your site. It will translate into increased conversion rates and a higher ROI over time. Another strategy is creating buyer personas to mimic and target your ideal customer. A buyer persona is a fictional representation of the kind of customer you desire to attract. By using buyer personas effectively, you can define precisely which customers you intend to target and plan accordingly.
Allows Globalization With Wider Opportunities for Growth
The internet doesn't have office hours. It's open virtually 24/7 in all corners of the earth. Today there are 4.66 billion active internet users in the world. Can you imagine how many potential customers or clients are in that population? Traditional marketing, in contrast to digital marketing, limits you to a particular geographic area. Online advertising can help you interact with a global pool of prospective customers easily. If your business is not yet utilizing the power of digital marketing, you are missing out on a golden opportunity.
The global pandemic has adequately demonstrated the importance of the virtual marketplace. The world has turned into a worldwide community now more than ever. The ability to sell your products and services globally is one of the advantages of digital marketing. The exposure provided by digital solutions has given small start-ups the rare opportunity to go global and compete with large corporations around the world. Within several months of aggressive SEO, you can secure millions of potential consumers and reach massive audiences. The internet abounds with stories of start-ups that became hugely successful by harnessing the power of social media.
Another side-effect of the internet age is that people are more conscious about the things they buy. That is why a majority of them will research the company before their product or service. So, investing in marketing consulting can take your business to the next level. Our experts can guide you on connecting with potential customers online through the most prominent marketing channels.
Easy Collaboration That Supports Your Brand
Collaborative marketing is a strategy that involves forming strategic marketing collaborations with similar companies to promote brands, minimize costs, and increase sales. It bolsters exposure through side-by-side advertisements with competitors. It is a popular and effective system used by many small businesses to stay competitive. With the fierce competition in the consumer-driven market today, brands have to adopt a multifaceted marketing strategy to remain competitive.
Small businesses with limited human resources, minimal budgets, lack of specialized skills, and knowledge make it incredibly hard to have an effective marketing process. Forming collaborations with agencies that specialize in marketing can help you co-create new products and services and cross-promote both businesses. Cooperation can also immensely increase your company's brand awareness. That is why marketing operations consulting is so crucial in the digital marketing space.
Collaborative marketing is more than cooperating with similar companies and marketing agencies. You can also collaborate with your customers directly. Modern technology has given us platforms to listen to the voice of our target audience. This incredible resource continues to develop as more people are becoming active social media users. By continuously assessing the involvement of consumers in your brand, you can reinforce your relationships with them. User-driven collaborative marketing can create organic growth for your brand.
Builds Business Resilience and Creates Stability
Resilience is forefront in the minds of executives. In today's business climate, a business must be able to withstand massive shifts in the economy and even the global and digital culture. The pandemic has continued its rapid spread, challenging global health, the economy, and disrupting traditional businesses. These changes made it almost impossible to have face-to-face interactions and to carry out hand-to-hand transactions. These are essential components of business operations worldwide.
Some companies have remained buoyant and resilient throughout this unprecedented crisis, but the restrictions forced others to lay off staff, cut salaries, or cease activity completely.
Digital business is crucial for companies that want to be stable and remain resilient. Keeping in contact with your customers and reaching new ones is more critical than ever before. There are two main ways digital marketing can build business resilience.
Tesla's annual shareholder's meeting and Joe Biden's presidential campaign were manifestations of the shift towards virtual events in 2020. Fuelled by necessity and not by choice, virtual events have become the new normal in today's business world. Because corporations are still willing to spend 50 to 60 percent of their marketing budgets on events, virtual events allow them to remain at the top of their customers' minds.
During the pandemic, people have lost loved ones as well as their jobs. So, it's important not to become blasé and use social media just as a way to sell your products. The more empathetic your social media is, the more your customers will feel like you care about them, and the more resilient you will become. Building trust and rapport with your customers will give you a solid base upon which to grow.
Increased Agility That Ensure Business Survival and Development
One of the unique benefits of digital marketing is that you can make changes as you go. With traditional methods, you can only affect changes at the end of your campaign, after seeing the results. However, digital marketing allows you to make dynamic changes as results become apparent. You can update your PPC campaigns, tweak your social media ads, optimize your SEO campaigns, and update your content more proactively.
By utilizing analytics, you can determine soft metrics like the number of visitors on your site, the pages they visit, and see how long they are spending on each page. You can also see the peak site traffic days and times and tailor your ads to these times. By utilizing this data effectively, you will maximize your ad campaigns' conversion potential, thereby increasing sales likelihood. These are crucial insights that can help you better your marketing operations.
Tracking the success of a content marketing campaign in real-time allows you to determine how best to use your resources and get the most out of your campaign tactics. For instance, let's say that you have posted a vlog series as part of your content marketing strategy. If you want to know whether to continue with the series or to make changes, you can check the vlog analytics to see if people are watching them or not.
Universal Creative Solutions makes sure you stay agile and informed and we hope these digital marketing benefits have enlightened you to use your marketing more effectively, help you attract your ideal customer, and optimize your scaling potential.