Digital marketing is the promotion of brands, products via electronic media. Examples of electronic Medias include Internet, CD, DVD and many others that portable like tablets, and IPad.
Key formats for digital media include:
- Websites and Search Engine Content
- Internet Banner Ads
- Online Video Content
- Pay-per-click Advertising
- Email Marketing
- Social Media Marketing (Facebook, Twitter, LinkedIn ect.)
- Mobile Marketing (SMS and MMS)
These tools have helped companies to analyse their marketing campaign. Due to advancements and technology, people are now able to share, comment and generate information online to social media. This growing number has led to marketers to think about “digital reputation” which is based on blogs, reviews, ratings and videos. It was found that a business with 5star rating (a good reputation) can generate 20% more revenue than a business with 4Star rating (Yuhong, L, 2014).
It is a useful tool for businesses to calculate the result of investments through per click, per likes, and per visits on a page. It assists businesses to gather feedbacks and enhance information and allows a business to save running costs imagine a business trading their goods online from US to Europe through e-commerce can help it to save office/store costs thus generate competitive advantage. It’s also assists business to tailor the marketing mix to reach its target audience in an efficient way as information put by customers can help to understand the demographics, choice, behaviour, lifestyle, and geographic location.
Digital marketing not only helps businesses but also the consumers in various ways;
Rapid growth of Web-based platforms that facilitate online social behaviour has significantly modifies the nature of human activities, habitats and interactions. Real-world social relationship have been migrated to virtual world, resulting in online communities that bring people together from across the globe à From consumer perspective, use of digital marketing helps to increase the efficiency, convenience, broader selection of product, competitive pricing, cost reduction and product diversity.
Digital marketing is considerably affordability for businesses compared to traditional promotional tools. With the analytical tools available business can know how to allocate their communication budget to ensure that they get maximum return on investment. Using traditional methods it can be hard to calculate the effectiveness of a campaign. On television advertising it is hard to track the number of viewers accurately whereas this can easily be calculated when using digital media.
There are many challenges digital marketing might present as it not helpful to generate loyalty and trust due to the amount of content available which can easily influence customers. Digital marketing is a dynamic sector that is always changing therefore it can be hard for business to keep up to date with current trends.
No doubt digital marketing has become wider for both small and large scale organisations. Digital marketing is a rapidly growing sector that forms the future of marketing. Digital marketing methods are becoming increasingly favourable compared to traditional marketing tools.