When working for a startup, business persons focus on attracting target customers by offering them quality products or services. Depending on their preferences, they generally rely on traditional print and electronic media for advertising and creating brand awareness. While this strategy may bring in some potential clients, there is a better and easier way.
The technological advancements of the current era have enabled customers to analyze and make purchase decisions regarding their favorite products, brands, or services through online platforms. Today, digital marketing has completely transformed marketing and business strategies used in the past decade. More and more businesses are opting for online marketing to attract their target customers. Besides, according to Statista, United States will have around 230.5 million online shoppers by 2021. Also, it is one of the crucial factors behind the increased sales ratio of Amazon each year.
Those currently working for a small business or willing to be entrepreneurs can significantly benefit through digital marketing. Below we have provided detailed information regarding the role of digital marketing and its contributions to the business sector.
What is the Role of Digital Marketing?
The role of digital marketing is to reach out to people looking for your products or services and convert them into paying customers. Digital marketing is a way to promote your brand online and gain high-value customers. Considering millions of online shoppers and users, businesses have several opportunities to reach their targeted audience.
Digital marketing enables businesses to interact with their target customers while providing them the opportunities to attract new ones. It further allows you to create a brand persona for online targeted users. Through different approaches like content marketing, on-page or off page SEO, influential marketing, etc., you showcase your value-added services and offer relevant content to clients.
How Digital Marketing Benefits Businesses
- Improves Your Businesses Online Rankings
Every business thrives on staying ahead of the competition. However, with several established corporations in the market, it is harder to stay on top due to a lack of resources and budget. Digital marketing helps a business to compete with its competitors by making smart strategies that are budget-friendly and result-oriented at the same time.
One such competitive digital marketing strategy is Search Engine Optimization or (SEO). Many companies or businesses invest their budget and time in SEO to boost their search engines’ rankings.
Google cares about providing the audience with relevant information and generates results based on search intent. You will likely rank higher if your content is better than your competitor. The same practice goes for PPC or Pay-Per-Click Marketing, where you place an ad based on biddings.
Perhaps, if you have a small budget but need quick results, you can use PPC for instant yet limited-time rankings. Both these examples show the power of digital marketing in leveling the playing field for businesses.
- Earns You Better ROI
Whether small or large, every business has the ultimate goal of earning a better return on investment (ROI). Digital marketing focuses on making more money out of your marketing efforts. Online marketing is very cost-effective compared to traditional marketing methods and yields even better results.
According to Statista, 32% of marketers ranked SEO as the top digital marketing strategy providing the highest ROI. While one in every three claimed email marketing as an effective strategy for the best ROI. In fact, when working through an email marketing strategy, you have a chance to earn $44 on every $1 spent on an email. The example gives you an idea about the potential of earning better returns. Hence, one may not overlook the importance of digital marketing in generating results and optimizing the marketing budget.
- Allows You to Reach Targeted Audience
Another benefit of digital marketing for business is that it allows you to connect with your targeted audience. Marketing through traditional means makes it challenging for you to reach out to people looking for your offering. Digital marketing, however, focuses on connecting your offering to the relevant audience. Traditional methods utilize your money in leads that may or may not take an interest in a business. With digital marketing, you target only those interested in purchasing your product or services and engage them accordingly.
For instance, if you use PPC, your ad will appear only to the audience that includes your target consumers based on their demographics. You can further establish a buyer persona and then advertise your business to people that fit those profiles. It is worth mentioning that targeting your potential customers drives better results and generates a suitable ROI for your business.
- Easy Tracking Feature
The goal of using digital marketing is simple, i.e., to gain maximum conversions. You want your targeted audience to download the lead magnet, join the email list, and eventually become a loyal customer. The best feature of digital marketing is that you have total control of your activities and track your performance from time to time.
Tracking your conversion rates and KPIs is a breeze when using digital marketing tools. Your business growth depends on higher conversions, and the internet makes it easy for you to gain that. It gives you an idea of market trends and demands. Tools like Google Analytics give you an exact figure of your performance and tracks your conversions accurately. Moreover, you can optimize your website for both desktop and mobile to target potential customers and increase sales.
- Helps Build Brand Reputation
Your brand is your business, and you want your target customers to know about that. Digital marketing gives you better brand recognition than traditional marketing methods, which eventually increases your customer following on various online platforms. You have to deliver according to your promise, and in return, you will gain customer loyalty.
Establishing your brand name is a challenge that needs time and effort. The more you invest your time, the better awareness you create. Digital marketing helps your brand to gain positive word of mouth.
