“Digital marketing,” in recent times, has become a buzzword. The benefits of digital marketing are sworn by, and everybody is jumping on this trend. Without really understanding the why, everybody is looking to reap the benefits of digital marketing, but a few realize at what capacity the benefits of digital marketing are going to help them.
What are the Benefits of digital Marketing?
In a recent post on Digital Marketing Strategy, I mentioned two primary reasons, digital marketing is so successful. So let me repeat them again, to begin this brief lesson on the benefits of digital marketing.
- Reaching a targeted audience
- Doing so in a cost-effective and measurable manner
Further in this read, you will understand why these two benefits are of paramount importance to your business and also ultimately give you the answer to the million dollar question, “is digital marketing worth it in 2020.”
Digital Marketing Advantages
Let’s take the first point.
Reaching a targeted audience.
What does this really mean?
Here, I am assuming you are not at all aware of the term “targeted audience.” Sometimes, understanding things from scratch will allow you to ideate better and fix the nitty-gritty of what you may be doing wrong.
Target audience, refers to a group of people that are ideally looking for or already consume the product or service you are offering. These people can be someone who is purchasing your product on the regular, thinking about your product or are likely to need it, but do not yet realize this.
Understanding who these people are will allow you to pin-point exactly who will be your point of sale and in-turn contribute to your business. Being as specific as possible is great to narrow down on who you are going after and draft your digital marketing strategy, accordingly. Once you know your niche, add a demographic layer to them.
If you are in a stage of ideating your business, a target audience can be your key to a great business idea. Focusing on a niche, will allow you to drive better results and work toward a more realistic approach to your business goals.
The characteristics of this targeted audience, is not specific to digital marketing. Understanding your buyer persona, can also help you identify this target audience more accurately.
A target audience can be classified based on 4 broad categories. This segmentation is done on the basis of demographics, psychographics, behaviors and geographic areas. When you have understood your target audience, you can create content and run campaigns to target them exactly in the right manner.
Why is digital marketing so successful?
Think about it. What makes digital marketing so successful. Why is having a target audience that important and how is it different in comparison to traditional marketing.
Going back, re-collect the old-school ways things were done. Think Print advertising, Tv commercials, billboards. Well, they’re still around but not quite at the same capacity as compared to digital.
How many times have you read a newspaper and saw an advertisement of buying a home at a great property. Now, think of when you were on a high-way and crossed a billboard that had a premium watch displayed from one of the most expensive brands in the market.
You sure appreciate the creativity at times and sometimes even read it for the heck of it. But were you the right person to see it? Were you looking for a home or interested to buy the most expensive watch in town? Probably not. The advertisement you viewed was entertainment for you, just a pass-time. To the advertiser it was a opportunity for sale. But an opportunity at what cost, and to whom.
That brings us to our first point. Relevancy.
In traditional marketing, the targeting that print, billboard or television offered was so wide that it often became extremely irrelevant. Advertisers were forced to pay more just for the one-off chance that somebody relevant would view it and then proceed to contemplate if they really wanted it.
The benefit of digital marketing, is this targeting. To reach a person by gender, age, interest and behavior so all your chances of getting a sale are invested to the right person, at the more affordable cost.
This brings us, to our second point. Cost. If you think about putting up an ad on a billboard, you can already imagine that is probably going to be EXPENSIVE. Reaching thousands of people, one would argue that it is worth it. But, at what cost?
Digital marketing allows for exactly the same information to be passed on to a thousand people for the fraction of the price! That too, in much more immersive manner. Allowing for Call-to-actions such as “Shop Now,” combining both images and videos, featuring product catalogues and more, users have much more variety to pick how they wish to engage with the product and directly make a purchase.
Compare that to a television ad. Surely, a good TV commercial is going to offer you an amalgamation of great story-telling with both audio and video-format. But think about the effort that comes after. Noting down a phone number, remembering the product, and re-collecting all ad details, are some of them.
In the digital space, you can click right on the advertisement, to be able to make the purchase. Whether product or service you can buy a product directly or book a consultation on the spot. It is seamless. With the click of a button, you have literally satisfied your need/want and a business has successfully made a sale. Although digital marketing is complex in nature, the simplicity of it to the user is what allows for it to be so transformational as compared to the traditional way of doing things.
Why digital marketing is the future
With the boom of technology and the globe adopting to the “Internet of Things” Digital marketing is headed exactly in that direction. With sophisticated tools allowing for marketing automations, AI’s giving predictions and much more. Digital will be the bread and butter of the technology stricken future.
In times of COVID-19, the digital transformation paved way for almost anybody to transform from a 9-5 worker to an entrepreneur. The benefits of digital marketing go beyond technology and can also be looked at as an opportunity for budding entreprenuers.
The way digital marketing works, it allows for a lay-man to compete with large coorporations, because the opportunity is open to all. With low costs and various business models, digital marketing allows for people to scale like never before.
Coming to our next point, being cost-effective and measurable. As we spoke about a targeting the right people, what we would essentially be doing, is running ad campagins catering to them. Another benefit of digital marketing, is measuring this ROI ( Return on Investment ). A good digital marketing strategy will allow for great conversion rates and also allow you to get accessible to an incredible about of data.
This data will include statistics of how your users are shopping, at what time of the day, and how they found you. Closely monitoring this data will allow you to strategize your content and campagins accordingly and make the most of this digital journey.
This data that we are able to gather from various digital marketing tools is in real-time. It is great to improve outreach, and going by data, is almost always a full-proof plan.
Now, coming to an important bit.
Who needs digital marketing?
Digital marketing is for everybody. Almost everybody is entitled to the benefits of digital marketing. This is not just for companies looking to keep up with trends, neither is it just for start-ups wanting a digital presence. It is for literally anybody on the internet. Whether you are a teenager looking to show off some skills, a fresh graduate looking for a job, a retired mom/dad that took up a hobby or just an entertainer, Anybody who wants to share content with the web can reap the benefits of digital marketing.
A gentle reminder
While there are many benefits to digital marketing, I cannot keep you away from its disadvantages. Depending on how you look at it, this can be either stepping stones to overcome, or a choice you will make. Either ways, they are important to know so that you can street clean from them or adapt accordingly.
Advantages vs. Disadvantages of Digital Marketing
Dependance on technology
Digital marketing can be of great interest to the tech lover or somebody that is fascinating by all the digitization it has to offer. But do not be fooled. The basic principles of marketing still apply. Your product still needs to be great and your service exemplary. No matter how advanced you are in the digital game, if your product or service lacks the basics, there is little digital marektign can do to help.
This technology can be great if used right, but if one is solely dependent on it, they may forget to see the hoslistic picture of all the components that are very vital to make a successful business.
Security and Privacy Issues
With everything available on the web, there are about to be threats. As the world of digital marketing rapidly flourishes, so does the concern for increased security and privacy. Data protection is everything, and if the right security is not in place, you are left vulnerable to ruthless sea threats that you may fall prey to.
One of the benefits of digital marketing being accessible to all also means that there is great competition. With its unbiased approach, digital marketing is going to put you up against everybody, and you need to make sure your digital strategy will out beat the competition and contribute to the retention of customers accordingly.
With new digital tools coming up everyday and the endless services available to boost your digital business, maintanence costs of these plug-ins, progessionals and practices can also be quite steep. Invest wisely and make sure you are utilizing all its benefits.
Being vulnerable to competitors
Market research and competitor analysis are given a pedestal in digital marketing, but everytime you do this with a competitor, a competitor is also doing it with you. The transparency digital marketing has to offer also comes with its own issues of being vulnerable.
In conclusion, the realm of digital marketing has everything to offer. The advantages vs. disadvantages of digital marketing can be debated, but the fact of the matter is, that digital marketing is here to stay.
Whether you adapt to it or not, it is going to take over and is already selling like hot cakes. The sooner you jump into the game the better you get at it with time. The more you explore, the more you will learn. Until next time, here is another video to keep you entertained, until our next meet!