September 26, 2009
The Naming Czars who have given us Internet Marketing, Web Marketing, Online Marketing have now given us Digital Marketing; another term to describe the same activities. Well, not really. Digital marketing includes all electronic based marketing and sales efforts; including marketing messages designed to be seen on mobile devices.
We've put together 5 Reasons Why You Need to Understand and Implement Digital Marketing, to help clarify the importance of using Digital Marketing effectively.
Reason 1 -Cost
Digital Marketing is cheaper on an impression basis than any other marketing method available. The lower cost of promotion/lead generation, provides higher margins of profit which can decide the difference between success and failure for a small business owner.
Think about it this way: if Firm A is generating sales on a 20% lower cost basis than Firm B, then Firm A will be able to drive Firm B out of business by offering lower pricing and still retain profitability. Firm B won't last long if they try to compete on price without lowering their cost per lead. There is a definite "first mover advantage" for businesses that get out in front of the cost curve by using digital marketing.
Reason 2 Effectiveness
Effectiveness message consists of 4 areas:
Targeting of potential clients/customers
Reach the number of potential clients that a message can address
Visibility- the frequency with which a message can be delivered to a client
Conversion of leads to sales digital marketing provides a means to quickly test different messages to the same audience for conversion results
Marketing messages that prove to convert more prospects to clients in digital media can also be used in offline media with confidence. Tracking and testing to this degree is just not available with offline forms of promotion.
Reason 3 360 Communication
Digital Marketing provides the means to have a two way "conversation" with clients and prospects for instant feedback for any marketing activity. Constant feedback allows businesses to instantly change the marketing message based on client response. It can also help alert businesses to problems or opportunities within their product or service offerings. The best competitive intel generally comes from clients with an existing relationship to a business.
Reason 4 - Speed
This may be a bit redundant but getting the message out instantly is highly valuable for any business; whether it's an event, product change, price offer, new service etc., the competitive advantage of getting the message out quickly can't be underestimated.
Reason 5 - Survival
There is no going back to the "good old days" when business meetings, trade shows, direct mail, and brochures were the core of the marketing plan. Digital Marketing is not just here to stay, it's influence and ability to reach effectively market products and services are going to be ever greater. Getting left behind today could reduce the chances of survival in the future.
We will be covering each of these areas in more depth in upcoming articles and blogs so stay tuned for more information on each of 5 reasons digital marketing is important to you.