SeeDreams Marketing Blog

What is Digital Marketing and How Does it Work?

Written by Nick Mossman | Mar 7, 2019 9:31:24 PM

What is Digital Marketing?

As more and more business owners become aware of digital marketing and its importance to grow business, there is still confusion about what digital marketing actually is. The general definition of digital marketing is:

The marketing of products or services by the use of electronic devices.

So, what does this include? This is where the confusion begins. To better explain this very general definition of digital marketing, we can divide digital marketing into online digital marketing and offline digital marketing. The main focus for this article will be online digital marketing, but we will also discuss what offline digital marketing is and where you can implement it into your digital marketing strategy, so let’s get started!

  • Offline Digital Marketing-Offline digital marketing is the oldest form of digital marketing, but is overlooked in today’s digital marketing.Offline digital marketing does not use the internet at all, instead these are electronic touch points that we are exposed to throughout our daily routines.These touch points include:
  • Radio (The oldest form of digital marketing)-Radio still has a large reach to audiences of various interest. Radio is an important method of digital marketing and doesn’t look like it’s going anywhere soon.
  • TV Advertisements-TV ads are dying slowly in the digital marketing world. The access to streaming networks such as Netflix and Hulu give viewers access to favorite shows and movies that are commercial free and the ability to record shows give viewers the power to skip over commercials. However, there is still TV and there are still commercials, but be careful with this digital marketing method.
  • Electronic Billboards-These are more attention grabbing billboards compared to the static billboards they are slowly replacing and these billboards are not just the giant ones on the side of the road any more. These digital billboards are now being incorporated in high foot traffic areas at eye level to grab your attention in a completely different way compared to when billboards first started.
  • Phone Marketing-Phone marketing is a classic digital marketing strategy and is still growing today. However, phone marketing is changing just like every other digital marketing platform. There is still the cold call method that involves a phone call without any other previous contact, but there is also text that can be used in your digital marketing strategy. By asking customers to voluntarily provide information to receive promotions, discounts, news, etc., the feeling feels more personal and not so invasive as a cold call.

While the digital world keeps changing, so does the effectiveness of these different strategies. However, some of these strategies are still very effective. Radio is the oldest form of digital marketing (no joke!) and is still a very effective form of digital marketing. According to Statista, a statistics and studies company, “Radio is one of the most powerful mediums in the United States, with a weekly reach of over 90 percent among adults.” As you can see, the reach of radio is still alive and can reach a large amount of potential customers.

Offline digital marketing is important to your digital marketing strategy, but make sure to research each channel you are thinking of using. Investing money into a digital channel that is losing effectiveness is a waste and will not reach the desired customers. Once you decide which channels to use, integrate your advertising into your online digital marketing to keep leading potential customers through the buyer’s journey.

  • Online Digital Marketing-Online digital marketing is the form of digital marketing that is stereotypically thought of when the term “digital marketing” is brought up. Online digital marketing includes all digital touch points that involve the internet. These touch points include:
    • Website-Your website is your digital business representation and one of the first things potential customers judge your business by. If your business website is outdated, confusing and hard to navigate, potential customers think this is how you run your business, encouraging them to find someone else to satisfy their expectations. On the other hand, if your website is simple to navigate, clearly structured and easy to understand, potential customers are more engaged and willing to trust your business
    • Search Engine Optimization (SEO)-SEO is the process of thinking like your customers. By thinking of keywords that potential customers use to find the services or products you offer and incorporating them in the appropriate places throughout your website, your web pages will appear in search engines and potentially “rank” higher for better exposure. This delivers specific and tailored content customers are looking for based on these keywords making it more trustworthy and relevant to what they want.
    • Social Media Marketing-Social media platforms are a great place to promote your business and show how “human” your company is. You can promote information pertaining to your industry, show your knowledge and experience and show what it’s like “at the office”. It is also an overlooked area to stand out in customer service. By engaging, addressing and answering your customers you show that your business cares and wants to offer the best experience.
    • Pay-Per-Click Ads (PPC Ads)-PPC ads are the ads that usually show up in a heading banner, side bar or both and only charge you when the add is clicked. These are ads that appear in front of internet users based on their online interests and can reach a large audience.
    • Search Engine Marketing-Search engine marketing is another method of marketing that involves investment. Google AdWords is one of the most popular search engine marketing platforms. You purchase specific keywords and based on your budget and the keywords, your web pages show above the first organic results, showing more authority.
    • Email Marketing-Email marketing is a great way to create more personal and direct contact with interested customers. By providing their email address, you can directly send promotions, news, updates, etc. to customers that want information from you and build trust for your company.
    • Content Marketing-As you get more involved with digital marketing, there is a phrase that you will hear over and over, “Content is King.” Developing a strong content strategy based on research and analytics is key to providing the right information at the right time. Once you have your content strategy in place, apply to all digital marketing touch points for brand consistency.
    • Mobile Optimization-Increased mobile use has made it more important to have a mobile optimized website than ever before. As more smartphone capabilities are created, the more customers are using them to access the internet for what they want, when they want it. This gives even more buying power to the customer because they can access your digital touch points from almost anywhere at any time and if your website isn’t mobile optimized, your potential customer will leave and most likely never come back. By catering to the customer and optimizing your website for all devices, you show that you are a business that thinks of their customers and you represent your customers the same way.

As the internet becomes easier and easier to access, online digital marketing is becoming more and more important. However, to create an effective online digital marketing strategy requires time, involvement and statistical analysis. Not only do you have to think like your target audience, you have to anticipate behavior changes to stay ahead of your competition and because the digital market is forever changing, this takes constant monitoring and adjusting. What content is engaged with the most? Do we need to adjust our social media strategy? Are we reaching the correct audience? These are the questions that are addressed as your online marketing strategy develops.

Using both methods of digital marketing is important for your marketing strategy, but again, make sure to do your research. Remember that the digital world is constantly changing and these changes affect offline and online digital marketing as well. Knowing behaviors of customers and anticipating new trends they expect creates a solid digital marketing strategy that delivers positive results. If investment is put towards a strategy that is outdated and behind customer expectations, you will be wasting valuable resources that fall short of your business goals.

How Does Digital Marketing Work?

As you can imagine, the answer to this question is just as complex as our last answer. Because there are two different platforms of digital marketing (offline and online) to reach your potential customers, there are different ways that digital marketing works. However, these two platforms should be developed parallel to each other, not only to keep a consistent tone and message for your business, but to also use them to work in conjunction with each other to create the strongest and most complete digital marketing strategy. Although there is a constant increase in internet use, offline digital marketing is still a key piece for your digital marketing success. By strategically using your offline digital marketing and online digital marketing together, you can lead potential customers down the entire buyer’s journey, converting them into purchasing customers and eventually loyal advocates of your business. Always remember, the purchase phase of the buyer’s journey usually doesn’t finish on the first touch point from your business. Make sure to provide solid information that will attract customers that are in all phases of the buyer’s journey:

  • General Information of your products and services for those customers that are just beginning the buyer’s journey
  • Why your products or services are better than the competition for those customers considering using your products or services but need more information
  • What will be expected for the price customers pay that are deciding to make a purchase.

Tailoring all of your digital marketing touch points to provide this information is the foundation to a strong digital marketing strategy. By researching your target audience, industry trends & expectations, languages of each digital touch point, etc., you grab the attention of potential customers in every stage of the buying journey and begin the trust building you need to keep these potential customers engaged to complete the buyer’s journey. Now let’s look at some examples of digital marketing in action!

  1. Brian hears your radio ad while listening to his favorite station and becomes intrigued about your business because you have clearly stated what your products or services are and why they are better than the competition. You end the add by saying you have a social media page and to check it out to find out more about your business (Offline Digital Marketing). Brian then looks at your social media page to learn more about your business and how you interact on your social media page (Online Digital Marketing). As Brian learns more and more, he begins to trust your business and the products or services you provide and visits your website (Online Digital Marketing). While Brian browses your website he can see very detailed information about your products or services and how much the cost is for each. Then he sees your customer testimonials or portfolio. Brian has all the information <and convincing> he needs, and makes a purchase from your website (Online Digital Marketing).
  2. Lucy sees your ad on an electronic billboard that catches her eye. She notices what your products or services are with a phone number and web address (Offline Digital Marketing). She doesn’t know anything about your business other than what you provide and she visits your website on her mobile phone. Because your website is mobile optimized, she can quickly learn about your business and more details about your product or services and begin to trust your business (Online Digital Marketing). After she gets back to the office, she wants to do even more research on your business and visits both your social media pages and your website. She gains the knowledge she needs to make a decision to use your business and sends you an email inquiring about your services or products (Online Digital Marketing).

Of course there are going to be a million other scenarios that will lead customers to your digital touch points, but you can see how all of your digital marketing touch points should lead customers through the buyer’s journey, no matter where the first engagement occurs. This is where consistency of the tone and message from your business is very important. Potential customers will make judgments and decisions about your company based on this alone. If your marketing is different platform to platform, customers will lose trust in your company and find a competitor that will satisfy their needs. With a consistent content strategy, you gain trust for your business from the very start. It shows how you run your business and what to expect from your business, encouraging customers that your products or services are represented in the same fashion.

Why Digital Marketing is Important

Now that we have a clear understanding of what digital marketing is and how it works, you can see how important your digital marketing is for your business. Your digital marketing speaks for your business more than most business owners realize. Your digital marketing represents your business 24 hours a day, 7 days a week, 365 days a year and needs to represent your business properly. Offline digital marketing has the potential to reach a very large audience and the exposure can be great for your business if done with a solid strategy behind it. The drawback is that you have no control on the target audience. It’s hard to track and analyze if these platforms are working, but as mentioned before, they can still reach large audiences and promote your business. Online digital marketing is the visual representation of your business that shows and explains who you are, what you have to offer, what makes you different and the personality of your business. Additionally, these various touch points can be tracked, monitored and analyzed to keep your digital marketing strategy updated and on track to achieve the proper goals. This keeps you ahead of your competitors and delivers the right information at the right time. Start researching, brainstorming, and developing a digital marketing strategy for your small business that has a solid foundation and is always evolving and adjusting. If you already have a digital marketing strategy in place, conduct an honest audit and evaluate it. Is tone and message consistent on every platform? Is it the right message and tone to truly represent your business? Are you engaging your target audience enough to look more into your business? Are you reaching your target audience? These are the questions that you need to ask during your audit and if you can answer “NO” to any of these questions, your digital marketing strategy needs adjusting to achieve the right goals. Remember, your entire digital marketing strategy represents your business and should be consistent on every digital touch point.

Now it’s time for you to take this knowledge and apply it to your digital marketing strategy, but if you need more information on the importance of digital marketing, read our article “Why Use Digital Marketing?” to learn even more about digital marketing and your business.

Resources

https://neilpatel.com/what-is-digital-marketing/

https://blog.hubspot.com/marketing/what-is-digital-marketing

https://www.smartinsights.com/digital-marketing-strategy/what-is-digital-marketing/