What is Online Marketing And Why it is Important For Business

Concept of Digital Marketing

 

Digital Marketing  which is well known as Online Marketing is the marketing of products or services using digital technologies, mainly on the Internet, but also including mobile phones, display advertising, and any other digital medium. This marketing’s development since the 1990s and 2000s has changed the way brands and businesses use technology for marketing. As digital platforms are increasingly incorporated into marketing plans and everyday life. Digital marketing methods such as search engine optimization, search engine marketing, 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 are becoming more common in our advancing technology. In fact, digital marketing now extends to non-Internet channels that provide digital media, such as mobile phones, callback, and on-hold mobile ring tones.In essence, this extension to non-Internet channels helps to differentiate digital marketing from online marketing, another catch-all term for the marketing methods mentioned above, which strictly occur online.

 

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The development of this market is inseparable from technology development. One of the key points in the start of was in 1971, where Ray Tomlinson sent the very first email and his technology set the platform to allow people to send and receive files through different machines . However, the more recognisable period as being the start of Digital Marketing is 1990 as this was where the Archie search engine was created as an index for FTP sites. In the 1980s, the storage capacity of computer 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.This kind of databases allowed companies to track customers’ information more effectively, thus transforming the relationship between buyer and seller. However, the manual process was not so efficient. This market became more sophisticated in the 2000s and the 2010s, whenthe proliferation of devices’ capable of accessing digital media led to sudden growth.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.

 

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It  is advertising on websites or apps or social media through banners or other ad formats made of text, images, flash, video, and audio. Since the early advent of technology, the Internet has completely changed the way people relate to advertisements. As computers prices decreased, online content became accessible to a large portion of the world’s population.This change has modified the way people are exposed to media and advertising and has led to the creation of online channels through which advertisements can reach users. The first type of relationship between a website and an advertiser was a straightforward, direct partnership. This partnership model implies that the advertiser promoting a product or service pays the website directly for a certain amount of ad impressions. As time went on, publishers began creating thousands of websites, leading to millions of pages with unsold ad space. This gave rise to a new set of companies called Ad Networks. The ad network acted as a broker, buying unsold ad space from multiple publishers and packaged them into audiences to be sold to advertisers. This second wave of advertiser-publisher relationships rapidly gained popularity as it was convenient and useful for buyers who often found themselves paying a lower price yet receiving enhanced targeting capabilities through ad networks. The third and most recent major development that shaped the advertiser-publisher ecosystem started occurring in the late 2000s when widespread adoption of RTB technology took place. Also referred to as programmatic bidding, RTB allowed companies representing buyers and sellers to bid on the price to show an ad to a user every time a banner ad is loading. When a page loads during a user visit, there are thousands of bids occurring from advertisers to serve an ad to that user, based on each company’s individual algorithms. With this most recent change in the industry, more and more ads are being sold on a single-impression basis, as opposed to in bulk purchases.

 

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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.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 to tailor advertising for internet users, but OBA raises concern of consumer privacy and data protection. In order to engage customers, retailers must shift from a linear marketing approach of one-way communication to a value exchange model of mutual dialogue and benefit-sharing between provider and consumer.

Exchanges are more non-linear, free flowing, and both one-to-many or one-on-one. The spread of information and awareness can occur across numerous channels, such as the blogosphere, YouTube, Facebook, Instagram, Snapchat, Pinterest, and a variety of other platforms. Online communities and social networks allow individuals to easily create content and publicly publish their opinions, experiences, and thoughts and feelings about many topics and products, hyper-accelerating the diffusion of information. The Nielsen Global Connected Commerce Survey conducted interviews in 26 countries to observe how consumers are using the Internet to make shopping decisions in stores and online. Online shoppers are increasingly looking to purchase internationally, with over 50% in the study who purchased online in the last six months stating they bought from an overseas retailer. Using an omni-channel strategy is becoming increasingly important for enterprises who must adapt to the changing expectations of consumers who want ever-more sophisticated offerings throughout the purchasing journey. Retailers are increasingly focusing on their online presence, including online shops that operate alongside existing store-based outlets. The “endless aisle” within the retail space can lead consumers to purchase products online that fit their needs while retailers do not have to carry the inventory within the physical location of the store. Solely Internet-based retailers are also entering the market; some are establishing corresponding store-based outlets to provide personal services, professional help, and tangible experiences with their products.

 

 

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An omni-channel approach not only benefits consumers but also benefits business bottom line: Research suggests that customers spend more than double when purchasing through an omni-channel retailer as opposed to a single-channel retailer, and are often more loyal. This could be due to the ease of purchase and the wider availability of products. Customers are often researching online and then buying in stores and also browsing in stores and then searching for other options online. Online customer research into products is particularly popular for higher-priced items as well as consumable goods like groceries and makeup. Consumers are increasingly using the Internet to look up product information, compare prices, and search for deals and promotions. One of the major changes that occurred in traditional marketing was the “emergence of digital marketing”, this led to the reinvention of marketing strategies in order to adapt to this major change in traditional marketing.

As digital marketing is dependent on technology which is ever-evolving and fast-changing, the same features should be expected from digital marketing developments and strategies. This portion is an attempt to qualify or segregate the notable highlights existing and being used as of press time.

Segmentation: more focus has been placed on segmentation within digital marketing, in order to target specific markets in both business-to-business and business-to-consumer sectors.
Influencer marketing: Important nodes are identified within related communities, known as influencers. This is becoming an important concept in digital targeting. It is possible to reach influencers via paid advertising, such as Facebook Advertising or Google Adwords campaigns, or through sophisticated sCRM software, such as SAP C4C, Microsoft Dynamics, Sage CRM and Salesforce CRM. Many universities now focus, at Masters level, on engagement strategies for influencers. To summarize, Pull digital marketing is characterized by consumers actively seeking marketing content while Push digital marketing occurs when marketers send messages without that content being actively sought by the recipients. Online behavioural advertising is the practice of collecting information about a user’s online activity over time, “on a particular device and across different, unrelated websites, in order to deliver advertisements tailored to that user’s interests and preferences.

 

 

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Collaborative Environment:

 

A collaborative environment can be set up between the organization, the technology service provider, and the digital agencies to optimize effort, resource sharing, reusability and communications.[36] Additionally, organizations are inviting their customers to help them better understand how to service them. This source of data is called User Generated Content. Much of this is acquired via company websites where the organization invites people to share ideas that are then evaluated by other users of the site. The most popular ideas are evaluated and implemented in some form. Using this method of acquiring data and developing new products can foster the organizations relationship with their customer as well as spawn ideas that would otherwise be overlooked. UGC is low-cost advertising as it is directly from the consumers and can save advertising costs for the organisation. Data-driven advertising: Users generate a lot of data in every step they take on the path of customer journey and Brands can now use that data to activate their known audience with data-driven programmatic media buying. Without exposing customers’ privacy, users’ Data can be collected from digital channels (e.g.: when customer visits a website, reads an e-mail, or launches and interact with brand’s mobile app), brands can also collect data from real world customer interactions, such as brick and mortar stores visits and from CRM and Sales engines datasets. Also known as People-based marketing or addressable media, Data-driven advertising is empowering brands to find their loyal customers in their audience and deliver in real time a much more personal communication, highly relevant to each customers’ moment and actions. An important consideration today while deciding on a strategy is that the digital tools have democratized the promotional landscape.

 

Remarketing:

 

Remarketing plays a major role in digital marketing. This tactic allows marketers to publish targeted ads in front of an interest category or a defined audience, generally called searchers in web speak, they have either searched for particular products or services or visited a website for some purpose.

Game advertising:

 

Game ads are advertisements that exist within computer or video games. One of the most common examples of in-game advertising is billboards appearing in sports games. In-game ads also might appear as brand-name products like guns, cars, or clothing that exist as gaming status symbols. The new digital era has enabled brands to selectively target their customers that may potentially be interested in their brand or based on previous browsing interests. Businesses can now use social media to select the age range, location, gender and interests of whom they would like their targeted post to be seen by. Furthermore, based on a customer’s recent search history they can be ‘followed’ on the internet so they see advertisements from similar brands, products and services,This allows businesses to target the specific customers that they know and feel will most benefit from their product or service, something that had limited capabilities up until the digital era.

 

Digital Marketing Future:

 

A strategy that is linked into the effectiveness of digital marketing is content marketing. Content marketing can be briefly described as “delivering the content that your audience is seeking in the places that they are searching for it”. It is found that content marketing is highly present in digital marketing and becomes highly successful when content marketing is involved. This is due to content marketing making your brand more relevant to the target consumers, as well as more visible to the target consumer. Marketers also find email an effective strategy when it comes to digital marketing as it is another way to build a long term relationship with the consumer. Listed below are some aspects that need to be considered to have an effective digital media campaign and aspects that help create an effective email system.Interesting mail titles differentiate one advertisement from the other. This separates advertisements from the clutter. Differentiation is one factor that can make an advertisement successful in digital marketing because consumers are drawn to it and are more likely to view the advertisement. Establishment of customer exclusivity: A list of customers and customer’s details should be kept on a database for follow up and selected customers can be sent selected offers and promotions of deals related to the customer’s previous buyer behaviour. This is effective in digital marketing as it allows organisations to build up loyalty over email.

 

Low Technical Requirements:

 

In order to get the full use out of digital marketing it is useful to make you advertising campaigns have low technical requirements. This prevents some consumers not being able to understand or view the advertising campaign.

 

Rewards:

 

The lucrative offers would always help in making your digital campaign a success. Give some reward in the end of the campaign. This would definitely invite more engagement and word of mouth publicity.

One Reply to “What is Online Marketing And Why it is Important For Business”

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