About Digital Marketing
What Is Digital Marketing?
Digital marketing is the component of marketing that uses the Internet and online based digital technologies such as desktop computers, mobile phones and other digital media and platforms to promote products and services.[2][3] Its development during the 1990s and 2000s changed the way brands and businesses use technology for marketing. As digital platforms became increasingly incorporated into marketing plans and everyday life,[4] and as people increasingly use digital devices instead of visiting physical shops,[5][6] digital marketing campaigns have become prevalent, employing combinations of search engine optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, content automation, campaign marketing, data-driven marketing, e-commerce marketing, social media marketing, social media optimization, e-mail direct marketing, display advertising, e–books, and optical disks and games have become commonplace. Digital marketing extends to non-Internet channels that provide digital media, such as television, mobile phones (SMS and MMS), callback, and on-hold mobile ring tones.[7] The extension to non-Internet channels differentiates digital marketing from online advertising.[8]
History
The development of digital marketing is inseparable from technology development. One of the first key events happened in 1971 when Ray Tomlinson sent the first email, and his technology set the platform to allow people to send and receive files through different machines. However, the more recognizable period as being the start of Digital Marketing is 1990 as this was when the Archie search engine was created as an index for FTP sites. In the 1980s, the storage capacity of computers was already big enough to store huge volumes of customer information. Companies started choosing online techniques, such as database marketing, rather than limited list broker. These kinds of databases allowed companies to track customers’ information more effectively, thus transforming the relationship between buyer and seller. However, the manual process was not as efficient.
In the 1990s, the term Digital Marketing was first coined, With the debut of server/client architecture and the popularity of personal computers, the Customer Relationship Management (CRM) applications became a significant factor in marketing technology. Fierce competition forced vendors to include more services into their software, for example, marketing, sales, and service applications. Marketers were also able to own huge online customer data through eCRM software after the Internet was born. Companies could update the data on customer needs and obtain the priorities of their experience. This led to the first clickable banner ad going live in 1994, which was the “You Will” campaign by AT&T , and over the first four months of it going live, 44% of all people.
In the 2000s, with increasing numbers of Internet users and the birth of the iPhone, customers began searching products and making decisions about their needs online first, instead of consulting a salesperson, which created a new problem for the marketing department of a company. In addition, a survey in 2000 in the United Kingdom found that most retailers had not registered their own domain address. These problems encouraged marketers to find new ways to integrate digital technology into market development.
In 2007, marketing automation was developed as a response to the ever-evolving marketing climate. Marketing automation is the process by which software is used to automate conventional marketing processes. Marketing automation helped companies segment customers, launch multichannel marketing campaigns, and provide personalized information for customers., based on their specific activities. In this way, users activity (or lack thereof) triggers a personal message that is customized to the user in their preferred platform. However, despite the benefits of marketing automation many companies are struggling to adopt it to their everyday uses correctly. users’
Digital marketing became more sophisticated in the 2000s and the 2010s when the proliferation of devices capable of accessing digital media led to sudden growth. Devices Statistics produced in 2012 and 2013 showed that digital marketing was still growing. With the development of social media in the 2000s, such as LinkedIn, Facebook, YouTube and Twitter, consumers became highly dependent on digital electronics in daily lives. Therefore, they expected a seamless user experience across different channels for searching product’s information. The change of customer behavior improved the diversification of marketing technology.[24]
Digital marketing is also referred to as ‘online marketing’, ‘internet marketing’ or ‘web marketing’. The term digital marketing has grown in popularity over time. In the USA online marketing is still a popular term. In Italy, digital marketing is referred to as web marketing. Worldwide digital marketing has become the most common term, especially after the year 2013.
Digital media growth was estimated at 4.5 trillion online ads served annually with digital media spend at 48% growth in 2010. An increasing portion of advertising stems from businesses employing Online Behavioural Advertising (OBA) to tailor advertising for internet users, but OBA raises concern of consumer privacy and data protection.
Brand awareness
One of the key objectives of modern digital marketing is to raise brand awareness, the extent to which customers and the general public are familiar with and recognize a particular brand.
Enhancing brand awareness is important in digital marketing, and marketing in general, because of its impact on brand perception and consumer decision-making. According to the 2015 essay, “Impact of Brand on Consumer Behavior”:
“Brand awareness, as one of the fundamental dimensions of brand equity, is often considered to be a prerequisite of consumers’ buying decision, as it represents the main factor for including a brand in the consideration set. Brand awareness can also influence consumers’ perceived risk assessment and their confidence in the purchase decision, due to familiarity with the brand and its characteristics.”
Recent trends show that businesses and digital marketers are prioritizing brand awareness, focusing more on their digital marketing efforts on cultivating brand recognition and recall than in previous years. This is evidenced by a 2019 Content Marketing Institute study, which found that 81% of digital marketers have worked on enhancing brand recognition over the past year.
Another Content Marketing Institute survey revealed 89% of B2B marketers now believe improving brand awareness to be more important than efforts directed at increasing sales.
Increasing brand awareness is a focus of digital marketing strategy for a number of reasons:
- The growth of online shopping. A survey by Statista projects 230.5 million people in the United States will use the internet to shop, compare, and buy products by 2021, up from 209.6 million in 2016.[38] Research from business software firm Salesforce found 87% of people began searches for products and brands on digital channels in 2018.
- The role of digital interaction in customer behavior. It’s estimated that 70% of all retail purchases made in the U.S. are influenced to some degree by an interaction with a brand online.
- The growing influence and role of brand awareness in online consumer decision-making: 82% of online shoppers searching for services give preference to brands they know of.
- The use, convenience, and influence of social media. A recent report by Hootsuite estimated there were more than 3.4 billion active users on social media platforms, a 9% increase from 2018.[42] A 2019 survey by The Manifest states that 74% of social media users follow brands on social sites, and 96% of people who follow businesses also engage with those brands on social platforms.[43] According to Deloitte, one in three U.S. consumers are influenced by social media when buying a product, while 47% of millennials factor in their interaction with a brand on social when making a purchase.
Strategy
Planning
Digital marketing planning is a term used in marketing management. It describes the first stage of forming a digital marketing strategy for the wider digital marketing system. The difference between digital and traditional marketing planning is that it uses digitally based communication tools and technology such as Social, Web, Mobile, Scannable Surface. Nevertheless, both are aligned with the vision, the mission of the company and the overarching business strategy.
Stages of planning
Using Dr. Dave Chaffey’s approach, the digital marketing planning (DMP) has three main stages: Opportunity, Strategy, and Action. He suggests that any business looking to implement a successful digital marketing strategy must structure their plan by looking at opportunity, strategy and action. This generic strategic approach often has phases of situation review, goal setting, strategy formulation, resource allocation and monitoring.
1) Opportunity
To create an effective DMP, a business first needs to review the marketplace and set ‘SMART’ (Specific, Measurable, Actionable, Relevant, and Time-Bound) objectives. They can set SMART objectives by reviewing the current benchmarks and key performance indicators (KPIs) of the company and competitors. It is pertinent that the analytics used for the KPIs be customized to the type, objectives, mission, and vision of the company.
Companies can scan for marketing and sales opportunities by reviewing their own outreach as well as influencer outreach. This means they have a competitive advantage because they are able to analyze their co-marketers influence and brand associations.
To seize the opportunity, the firm should summarize its current customers’ personas and purchase journey from this they are able to deduce their digital marketing capability. This means they need to form a clear picture of where they are currently and how many resources they can allocate for their digital marketing strategy i.e. labor, time, etc. By summarizing the purchase journey, they can also recognize gaps and growth for future marketing opportunities that will either meet objectives or propose new objectives and increase profit.
2) Strategy
To create a planned digital strategy, the company must review its digital proposition (what you are offering to consumers) and communicate it using digital customer targeting techniques. So, they must define online value proposition (OVP), which means the company must express clearly what they are offering customers online e.g. brand positioning.
The company should also (re)select target market segments and personas and define digital targeting approaches.
After doing this effectively, it is important to review the marketing mix for online options. The marketing mix comprises the 4Ps – Product, Price, Promotion, and Place. Some academics have added three additional elements to the traditional 4Ps of marketing Process, Place, and Physical appearance making it 7Ps of marketing.
3) Action
The third and final stage requires the firm to set a budget and management systems. These must be measurable touchpoints, such as the audience reached across all digital platforms. Furthermore, marketers must ensure the budget and management systems are integrating the paid, owned, and earned media of the company. The Action and final stage of planning also require the company to set in place measurable content creation e.g. oral, visual, or written online media.
After confirming the digital marketing plan, a scheduled format of digital communications (e.g. Gantt Chart) should be encoded throughout the internal operations of the company. This ensures that all platforms used fall in line and complement each other for the succeeding stages of digital marketing strategy.
