Why Digital Marketing is an Effective Marketing Channel for Growing a Business

Debra Morgan, Marketing Tech Outlook | Monday, July 19, 2021

Businesses with a well-defined and well-executed digital marketing strategy can reach millions of smartphone and tablet users.

FREMONT, CA: Small and medium-sized businesses are doing everything they can to keep up with the changes and evolution of modern technologies. Brick-and-mortar businesses are doing one of two things: either transitioning to an online business model or bolstering their marketing efforts with digital marketing strategies. A targeted online audience is critical in whether a business will succeed or fail. Even if a website gets daily traffic, it will be useless unless it converts to leads or sales. The benefit of digital marketing tools and techniques gives businesses a better chance of competing, surviving, and even growing in the digital marketplace. The following are some reasons why digital marketing is a prudent investment and an effective marketing channel that can assist entrepreneurs in growing their businesses.

The leveling of the online playing field through digital marketing

The days of business owners accepting the notion that digital marketing is only for multinational corporations and large corporations with the necessary resources to mount an online marketing campaign are over. Digital marketing effectively levels the playing field by allowing small and medium-sized businesses to compete with the big boys and capture a share of targeted traffic.

Small businesses now have the resources to perform sales and marketing processes previously only available to large corporations through digital marketing. Small companies can effectively engage with many customers even if they do not have physical stores or branches in these locations.

The cost-effectiveness of digital marketing is greater than that of traditional marketing

Small businesses typically lack both resources and capitalisation. This is why Digital Marketing enables them to leverage a more effective and cost-effective marketing channel that produces results. According to Gartner's Digital Marketing Spend Report, up to 40 percent of respondents reported significant cost savings associated with digital marketing promotion methods for their products and services. That is why, according to a Gartner survey, 28 percent of business owners surveyed intend to reallocate marketing budgets away from traditional media channels and toward digital online marketing tools and techniques.

Conversions are achieved through digital marketing

Businesses that market products and services online determine their success based on the percentage of incoming traffic that converts to leads, subscribers, or sales, depending on the website's intended purpose. Without conversion, all of the businesses’ traffic and marketing efforts will be in vain. That is why business owners are prioritising conversion optimisation above all else in their digital marketing campaigns. Various tools and techniques are available for digital marketing campaigns, including SEO, social media, and email.

Digital marketing gives a higher return on investment for marketing expenses

In contrast to traditional marketing channels, digital marketing increases revenues and branding due to a higher ROI. Small and medium-sized businesses can't afford traditional media, which doesn't yield unequivocal or quantifiable results. However, digital marketing is trackable and measurable, with results realised and quantified instantly after targeted audiences give contact information, subscribe to a newsletter, or make a purchase.

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