Digital marketing is defined as a marketing approach that relies primarily on the Internet to connect with a target audience through a variety of digital media channels and platforms.
In this article, we will look at What is digital marketing, Digital Marketing Assets, Digital Marketing Strategies, Pay-per-click Advertising, paid search advertising, Search Engine Optimization (SEO), Paid social media advertising, Social media marketing, conversion rate optimization (CRO), content marketing, native advertising, Email Marketing, Affiliate Marketing, does digital marketing work. well also look at How is Digital Marketing Different on Mobile to inspire you. Let’s begin!
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What is Digital Marketing? and How Do I Get Started?
Digital marketing, online marketing, internet advertising… what you call it, marketing your company online is a big thing nowadays. After all, Internet use has more than doubled in the last decade and this shift has had a huge impact on how people buy products and interact with businesses.
So, what is digital marketing? Digital marketing is just like any other marketing tool – it’s a way to connect and impress your potential customers. The real difference is, you connect and influence those customers online.
What is Digital Marketing?
Basically, digital marketing refers to any marketing online marketing effort or asset. Email marketing, pay-per-click advertising, social media marketing and blogging are also great examples of digital marketing – it helps introduce people to your company and persuade them to buy.
Here are some general digital marketing assets and strategy businesses used to reach people online:
Digital Marketing Assets
Approximately anything can be a digital marketing asset. It simply requires to be the online marketing tool you use. That being said, not many people realize how much digital marketing assets they have. Here are just some examples:
- Your website
- Branded assets (logo, icon, acronyms, etc)
- Video contents (video ads, product demos, etc)
- Pictures (infographics, product shots, company photos, etc)
- Written contents (blog posts, eBooks, product descriptions, testimonials, etc)
- Online product or tools (SaaS, calculators, interactive contents, etc)
- Social media page
As you can probably imagine, this list is just scratching the outside. Most digital marketing assets will fall into one of these categories, but intelligent marketers are constantly coming up with new ways to reach consumers online, so the list keeps growing!
Digital Marketing Strategies
The list of digital marketing strategies is also constantly developing, but here are some strategies that most businesses are using:
Pay-Per-Click (PPC) Advertising
Pay-per-click (PPC) advertising is a broad term that covers any category of digital marketing where you pay for every user who clicks on the ad. For example, Google AdWords is a form of PPC advertising called “Paid Search Advertising” (which we will cover in a second). Facebook ads are another form of PPC advertising called “Paid Social Media Advertising” (again, we will get into that soon).
Paid Search Advertising
Google, Yahoo and Bing all allow you to run text ads on their search engine results pages (SERPs). Paid search advertising is a great way to target potential consumers who are actively looking for a product or service like yours.
Search Engine Optimization (SEO)
If you don’t want to pay to show up in the SERPs, you can also try out the pages or blog posts on your site and use search engine optimization (SEO). You don’t have to pay directly for each click, but it usually takes a little time and effort to get a page ranked.
Paid Social Media Advertising
Most social media platforms like Twitter, LinkedIn, Instagram, Pinterest, Facebook and Snapchat will allow you to run ads on their site. Paid social media advertising is best for heightening awareness with audiences that may not know your business, products or service exists.
Social Media Marketing
Like SEO, social media marketing is a free, organic way to use social media platforms like Facebook or Twitter to market your business. And, like SEO, organic marketing of your business on social media takes more time and effort, but in the long run, it can deliver much cheaper results.
Conversion Rate Optimization (CRO)
Conversion rate optimization (CRO) is the art and science of rectifying your online user experience. Most of the time, businesses use CROs to get additional conversions (leads, chats, calls, sales, etc.) from their existing website traffic.
Content marketing is a fairly broad digital marketing term. Content marketing covers any digital marketing effort that uses content resources (blog posts, infographics, eBooks, videos, etc.) to create brand awareness or drive clicks, lead, or sales.
Ever scroll down an article and see a list of suggested articles? That’s the Native advertising. Much of the native advertising content comes under marketing because it uses content to attract clicks (“You never believe what happens next!”). some times native advertising can be a Small difficult to see, as they usually blend in with unpaid content recommendations… but that’s the kind of topic.
Email marketing is the oldest form of online marketing and it is still strong. Most digital marketers use email marketing to promote special deals, publish content (often as part of content marketing), or promote an event.
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Affiliate marketing essentially pays another person (one person or business) to promote your products and services on their website.
As you can see from the list above, there are many ways to market your business online, which is why many businesses pay either the agency to manage their digital marketing efforts or the in-house marketing team and marketing automation software. To cover their marketing requirements.
Does Digital Marketing Work?
Digital Marketing is the best option for any business. At Troublesome, we have used digital marketing to help all types of businesses increase from mom-and-pop stores to internationally recognized universities and beyond. That is the beauty of online advertising. If you know who you want to target, you can use digital marketing to target anywhere, anytime.
Although, it has been said that certain types of businesses will advantage more from certain types of digital advertising. As a quick overview, let’s see if the strategy works best for business-to-customer (B2C) companies and business-to-business (B2B) companies:
Generally speaking, B2C companies have much lower price points than their B2B counterparts. After all, it can be a little tricky to sell 150,000 drill bits (trust me, they exist) to a harried mom. But a $10 pair of children’s pants? It’s a fairly direct sale.
The good news is because B2C companies haven’t tried to sell incredibly expensive products or services, they don’t need big sales teams or a complex marketing funnel. All they have to do is get their products or services in front of the right audience with the right messaging and the rest should take care of themselves.
As a result, the primary goal of most B2C companies is to get people into and out of their marketing funnel. For example, if you can take those kids to a clothing website and offer her a lucrative deal, there is a good chance she will buy it today. You don’t have to build a ton of brand awareness or confidence before you can stop selling.
With that in mind, B2C companies often see good results from high-funnel marketing channels such as social media marketing or paid social advertising. These channels do a great job of getting your business in front of potential customers who may not even know you exist.
Now, supplementing with other digital marketing strategies like paid search or SEO is always a better idea, but if you have to choose a channel to get started, paid social advertising or social media marketing are the best options for B2C.
In contrast, paid search is the best option for B2B companies. Most B2B companies have a very specific audience that can be difficult to target using social media. However, if you sell $150,000 drill bits and search for a “diamond-tipped oil drilling bit manufacturer”, you see the first result. Yes, you can pay more for your clicks than paid social ads, but that cost is worth the $150,000 tags.
In addition, most B2B companies have longer and more associated sales cycles than B2C companies. If you’re selling $150,000 drill bits, most people won’t come to your site, just call you and say “I want one.” As a result, long-term strategies such as content marketing or email marketing are always needed to close the deal.
Of course, the right mix of digital marketing tactics can vary from industry to industry and business to business, but comparing B2C to B2B can help you understand how different strategies can be better for specific industries. Will. Not every strategy is right for every business, but with a little trial and error, you should be able to identify the most beneficial approach for your company.
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How Do I Get Started?
The good news is, it’s simple to get started with digital marketing. Most online advertising platforms make it simple to sign up and build your first campaign (after all, that’s how they make money).
A key part of every successful digital marketing campaign, though, is not mentoring. Regardless of which strategies you choose to use, here are 4 questions to answer before you get started with digital marketing:
#1. How Much Do You Need to Make?
To find out what you require to spend in digital marketing, you first require to specify what your goals are. How you approach digital marketing can be different slightly depending on whether your ultimate goal is to drive clicks, conversions or leads, sales, revenue, or return on investment (ROI).
When you go down it, the ultimate aim of any marketing effort should be ROI. After all, if your digital marketing expenses are not driving profitable revenue for your business, why do you do online marketing?
Clicks and conversions are also good, but your company doesn’t create money from clicks (in fact, you actually expend money on clicks) or changes. It creates money from sales.
With that in mind, you need to decide how much revenue you want to drive before you decide what your digital marketing budget should be. Once you know that, you can use that information to determine how much advertising will take to reach that revenue target.
#2. Who Are You Marketing To?
Once you know how much money you want to make from digital marketing, you require to identify who you are marketing to. This is important because different buyers need a different marketing strategy. And, more importantly, different buyers turn into different types of buyers.
So guess what? If you don’t understand your buyer personas, you can’t build an effective digital marketing tactic!
If you have a sales team, talking to a salesperson is the fastest way to get the right buyer together. After all, that’s what your customers talk about the most, right?
However, talking to your sales team and doing a little research is not enough to get you to the level of details, you require to put together an effective digital marketing plan. To do that, you require to come on the phone and call your real customers.
Ask how they met you, why they converted and how they guaranteed to pay you. This information will give you a ton of insights into your marketing and sales process that you can use to improve your advertising performance and choose your marketing budget.
#3. What are your Customers Worth?
Typically, people see the buyer as the best way to build effective marketing tactics. Buyers are great for this, but it’s also an important part of having an effective digital marketing plan together.
For example, imagine that you are advertising for a SaaS business called SaaS-A-Frass which has the following pricing structure:
In this case, consider targeting maybe 3 different buyers:
- Small Business “steve”
- Mid-market business “Mandy”
- Enterprise business “Edward”
Small business “Steve” has much lower and simpler business needs than Edward or Mandy, so he will probably choose a starter package. Mandy probably wants the business package and Edward should have the possibility of an enterprise package.
Assuming Steve, Mandy and Edward live an average of 14 months, 4 years and 9 years, respectively, (average lifetime for SaaS clients) and buy 5, 20 and 100 licenses (again, respectively), here is the lifetime value of each of these Person ( [licenses/mo] x [# of licenses] x [typical customer lifespan in months] ):
- Steve: $1,750
- Mandy: $72,000
- Edward: $1,590,000
These numbers may seem really attractive, but not all of them are profitable.
A typical SaaS company pays about 22% for the fulfillment, 9% in sales and 40% overhead, leaving 29% of each client’s lifetime value to play. To put it simply, Saas-A-Frass has to spend less than the following to get a customer from Facebook:
Maximum Acquisition Cost
- Steve: $507.50
- Mandy: $20,880
- Edward: $461,100
If Saas-A-Frass can keep their acquisition price below this threshold, they will create money. If this costs each customer more than that to achieve, they will lose money.
See why buyers are so important to the budget.
Of course, the market is not likely to be saturated with Edwards, so Saas-A-Frass will require a combination of these deals to meet their revenue targets. That combination will determine their Facebook budget.
Therefore, if SaaS-A-Frass is willing to spend $0.18 on marketing to generate $1.00 in lifetime value (11% for a total profit period), Saas-A-Frass can pay the following for each buyer:
Customer Acquisition Cost
- Steve: $315
- Mandy: $12,960
- Edward: $286,200
If Saas-a-Frass cannot generate customers paying below a certain threshold to a particular buyer at a price below this threshold, they may not market that buyer.
However, if Sass-A-Frass’s digital marketing efforts currently produce individual buyers from this CAC (or even CAC below this threshold), Saas-A-Frass may use that information to calculate their marketing budget.
#4. How Much Do You Need to Spend to Reach Your Goals?
At the moment, things are pretty simple. Just take your CAC, average purchase order value, and an average number of purchases (if you have a subscription model, you can just use each buyer’s individual lifespan here) and add them to this calculator!
The default for this calculator shows the monthly budget and ROI for Saas-A-Fraas, assuming that Saas-A-Frass wants to generate $425,500 in new revenue from digital marketing every month and they have decided that in order to do this, They need to be needed. Marketing efforts to generate 100 sales per month (90 Steves, 9 Mandys and 1 Edward).
According to our example, a new Steve pays $125/mo for an average of 14 months, a new Mandy pays $1,500/mo for an average of 48 months and a new Edward pays $15,000/mo for 108 months.
By plugging it all into the calculator, Saas-a-Frass will have to create a budget of $ 348,300 / mo to achieve its new lifetime income targets.
See? I told you this part is easy! To make things better, you can use this calculator to calculate your overall digital marketing budget or to determine if a given strategy makes sense for your business. For example, if you need a CAC of $75, but your average spend on AdWords is $25 per share, AdWords may not be the right digital marketing channel for you.
Now, as you can imagine, there is no perfect estimate of what this approach will take in hitting your revenue targets. This calculator is as accurate as of the information you can give. But, it is much better to choose your monthly randomly and hopes that digital marketing will bring you the desired results.
How is Digital Marketing Different on Mobile?
As you can probably imagine, digital marketing on mobile is very different from digital marketing on the desktop. These days, these differences are especially important because smartphones are now the primary device that people use to communicate with the Internet.
With 60% of Internet activity happening on mobile devices, the transition from desktop to mobile has had an extreme effect on digital marketing.
Last year, Google Ads got rid of sidebar ads on their results pages to build a consistent experience between mobile and desktop. Facebook ads still show sidebar ads on the desktop, but only in-stream ads on mobile. Short blog posts outperform long blog posts on mobile … and the list of differences goes on.
To be honest, in today’s digital marketing world, people believe that you can market on mobile and then adapt your strategy to the desktop as needed.
In addition to optimizing your ads for the phone, it is also important to think about your site and landing page experience. Sure, your website may look beautiful on desktop, but if it’s impossible to navigate on mobile, you’ll eliminate a significant percentage of your web traffic.
At a minimum, you should have a mobile responsive website, but ideally, your mobile experience should be designed to be a mobile experience without special effort (not just a convenient version of your desktop experience).
Whether more advertisers realize it or not, digital marketing is primarily a mobile experience now. The good news is, if you’re relatively new to digital marketing, you don’t have to worry about getting back on track. You can start with attractive mobile ads and then adapt as needed for desktop.
Digital marketing is the marketing of the future. In addition to all the benefits we’ve discussed in this article, you can track the results of your digital marketing efforts with incredible accuracy, which means it’s easy to see which strategies are yielding profitable results and what work is needed.
Incidentally, if this article has convinced you that you require digital marketing (or your digital marketing game), but you need some help identifying the right approach, let us know here or in the comments! We love helping businesses grow with digital marketing.