What is the importance of digital marketing?

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One of the major challenges facing most startups is planning on how to gain traction especially with their early set of clients. How can startups locate their customers? How can they get customers to appreciate the value of their service? What is the perfect way to create awareness on a minimal budget? Without a doubt, these are the issues just about every startup owner asks.

This is where digital marketing and its various channels come into play.

1. Digital Marketing Levels the Online Playing Field

Gone are the days when business owners still welcome the notion that Digital Marketing is only for the likes of multinationals and large corporations that have the sufficient resources required to mount an online marketing campaign. Digital Marketing actually levels the playing field, providing small and medium enterprises the chance to compete against the big boys and attract their share of targeted traffic.
With digital marketing, small companies now have the resources to perform sales and marketing processes that were previously available only to large corporations. Without a call center, small businesses can engage effectively with multiple customers, even to customers from any parts of the world even if they don't have physical stores or branches in these locations.

2. Digital Marketing Is More Cost-Effective than Traditional Marketing

Small businesses have very little resources and even capitalization. This is why Digital Marketing provides them with a better and much more cost-effective marketing channel that delivers results. Gartner's Digital Marketing Spend Reporthighlighted that up to 40% of respondents claimed getting considerable savings by using digital marketing methods of promotion for their products and services.

That is why according to the Gartner survey, 28% of business owners surveyed will shift marketing budget allocations from traditional media channels and invest them into digital online marketing tools and techniques. HubSpot confirms this as shown in the chart below that confirms how digital marketers get better Cost-Per-Lead (CPL) compared to other marketing channels.

3. Digital Marketing Delivers Conversion
Businesses marketing products and services online measure success by the percentage rate of incoming traffic gets converted into leads, subscribers or sales, depending on the intended purposes of your website. Without conversion, all your traffic would mean nothing and all your marketing efforts will simply go to waste. That is why business owners are streamlining their digital marketing campaigns towards conversion optimization, making it a top priority above everything else.

There are several tools and techniques that you can use for your digital marketing campaign such as Search Engine Optimization, social media marketing and email marketing.

4. Digital Marketing Helps Generate Better Revenues

Higher conversion rates generated by effective digital marketing techniques will deliver loads of profitable benefits for you and your business in terms of better and higher revenues. Google confirms this in a study with IPSOS Hong Kong, claiming 2.8 times better revenue growth expectancy for companies using digital marketing strategies to those who do not.

With better revenue growth expectancy, small and medium enterprises using digital marketing techniques will have 3.3 times better chances of expanding their workforce and business – opening their doors to better, larger and farther reaching markets both locally and abroad. Google's Asia-Pacific Head of SME Kevin O'Kane describes the Internet as rocket fuel for growth for small and medium enterprises.

5. Digital Marketing Facilitates Interaction with Targeted Audiences

One of the reasons why digital marketing is taking over traditional marketing channels is the ability of Internet marketing tools to interact with targeted audiences in real time. Engagement in any form is what your customers expect to receive when interacting with your brand or business. How your business handles such engagements and interactions will spell the difference between business success and failure.

Interacting and providing your customers with proper engagement points can give you an insight of what your targeted audiences want. This vital information will steer you towards making the right set of next moves, provide your customers with an even better experience, develop good relationships with them – gaining their loyalty and trust that you will need when your business begins to grow.