DIGITAL MARKETING
Digital marketing is the component of marketing that uses the Internet and onlinebased digital technologies such as desktop computers, mobile phones, and other digital media and platforms to promote products and services.[2][3] It has significantly transformed the way brands and businesses utilize technology for marketing since the 1990s and 2000s. As digital platforms became increasingly incorporated into marketing plans and everyday life,[4] and as people increasingly used digital devices instead of visiting physical shops,[5][6] digital marketing campaigns have become prevalent, employing combinations of search engine optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, content automation, campaign marketing, data-driven marketing, e-commerce marketing, social media marketing, social media optimization, email direct marketing, display advertising, e-books, and optical disks and games have become commonplace. Digital marketing extends to non-Internet channels that provide digital media, such as television, mobile phones (SMS and MMS), callbacks, and on-hold mobile ringtones.[7] The extension to non-Internet channels differentiates digital marketing from online marketing [8]
History
Digital marketing effectively began in 1990 when the Archie search engine was created as an index for FTP sites. In the 1980s, the storage capacity of computers was already large enough to store huge volumes of customer information. Companies started choosing online techniques, such as database marketing, rather than limited list brokers.[9] Databases allowed companies to track customers' information more effectively, transforming the relationship between buyer and seller.
In the 1990s, the term digital marketing was coined.[10] With the development of server/client architecture and the popularity of personal computers, Customer Relationship Management (CRM) applications became a significant factor in marketing technology.[11] Fierce competition forced vendors to include more services in their software, such as marketing, sales, and service applications. Marketers were also able to own online customer data through eCRM software after the Internet was born. This led to the first clickable banner ad going live in 1994, which was the "You Will" campaign by AT&T, and over the first four months of it going live, 44% of all people who saw it clicked on the ad.[12][13] Early digital marketing efforts focused on simple HTML websites and the
burgeoning practice of email marketing, which allowed for direct communication with consumers.[14]
In the 2000s, with increasing numbers of Internet users and the birth of the iPhone, customers began searching for products and making decisions about their needs online first, instead of consulting a salesperson, which created a new problem for the marketing department of a company.[15] In addition, a survey in 2000 in the United Kingdom found that most retailers still needed to register their own domain address.[16] These problems encouraged marketers to find new ways to integrate digital technology into market development. At the same time, PPC advertising,[expand acronym] introduced by Google AdWords in 2000, allowed businesses to target specific keywords, making digital marketing more measurable and cost-effective.[17]
The mid-2000s saw the emergence of social media platforms like Facebook (2004), YouTube (2005), and Twitter (2006). These platforms revolutionized digital marketing by facilitating direct and interactive engagement with consumers. In 2007, marketing automation was developed as a response to the ever-evolving marketing climate. Marketing automation is the process by which software is used to automate conventional marketing processes.[18] Marketing automation helped companies segment customers, launch multichannel marketing campaigns, and provide personalized information for customers.,[18] based on their specific activities. In this way, users' activity (or lack thereof) triggers a personal message that is customized to the user in their preferred platform. However, despite the benefits of marketing automation many companies are struggling to adapt it to their everyday uses correctly.[19][page needed]
Digital marketing became more sophisticated in the 2000s and the 2010s, when[20][21] the proliferation of devices capable of accessing digital media led to sudden growth.[22] Statistics produced in 2012 and 2013 showed that digital marketing was still growing.[23][24] With the development of social media in the 2000s, such as LinkedIn, Facebook, YouTube, and Twitter, consumers became highly dependent on digital electronics in their daily lives. Therefore, they expected a seamless user experience across different channels for searching product information. The change in customer behavior improved the diversification of marketing technology.[25]
The term "Digital Marketing" was coined in the 1990s. Digital marketing was formally known as and referred to as 'online marketing', 'internet marketing', or 'web marketing'. Worldwide digital marketing has become the most common term and has taken off in the business industry, especially after the year 2013. However, in other countries like Italy, digital marketing is still known as web marketing. [26]
Digital media growth was estimated at 4.5 trillion online ads served annually with digital media spending at 48% growth in 2010.[27] An increasing portion of advertising stems from businesses employing Online Behavioural Advertising (OBA) to tailor advertising for internet users, but OBA raises concerns about consumer privacy and data protection.[22]
New non-linear marketing approach
Nonlinear marketing, a type of interactive marketing, is a long-term marketing approach that builds on businesses collecting information about an Internet user's online activities and trying to be visible in multiple areas.[28]
Unlike traditional marketing techniques, which involve direct, one-way messaging to consumers (via print, television, and radio advertising), nonlinear digital marketing strategies are centered on reaching prospective customers across multiple online channels.[29]
Combined with higher consumer knowledge and the demand for more sophisticated consumer offerings, this change has forced many businesses to rethink their outreach strategy and adopt or incorporate omnichannel, nonlinear marketing techniques to maintain sufficient brand exposure, engagement, and reach.[30]
Nonlinear marketing strategies involve efforts to adapt the advertising to different platforms[31] and to tailor the advertising to different individual buyers rather than a large coherent audience.[32]
Tactics may include:
• Search engine optimization (SEO)
• Social media marketing
• Video marketing
• Email marketing
• Blogging & affiliate marketing
• Website marketing
• Pay-per-click
• Content marketing
• Search engine marketing
• Social media optimization
Some studies indicate that consumer responses to traditional marketing approaches are becoming less predictable for businesses.[33] According to a 2018 study, nearly 90% of online consumers in the United States researched products and brands online before visiting the store or making a purchase.[34] The Global Web Index estimated that in 2018, a little more than 50% of consumers researched products on social media.[35] Businesses often rely on individuals portraying their products in a positive light on social media, and may adapt their marketing strategy to target people with large social media followings in order to generate such comments.[36] In this manner, businesses can use consumers to advertise their products or services, decreasing the cost for the company.[37]
Brand awareness
Main article: Brand awareness
One of the key objectives of modern digital marketing is to raise brand awareness, the extent to which customers and the public are familiar with and recognize a particular brand.
Enhancing brand awareness is important in digital marketing, and marketing in general, because of its impact on brand perception and consumer decision-making. According to the 2015 essay, "Impact of Brand on Consumer Behavior":
"Brand awareness, as one of the fundamental dimensions of brand equity, is often considered to be a prerequisite of consumers’ buying decision, as it represents the main factor for including a brand in the consideration set. Brand awareness can also influence consumers’ perceived risk assessment and their confidence in the purchase decision, due to familiarity with the brand and its characteristics."[38]
Recent trends show that businesses and digital marketers are prioritizing brand awareness, focusing more on their digital marketing efforts on cultivating brand recognition and recall than in previous years. This is evidenced by a 2019 Content Marketing Institute study, which found that 81% of digital marketers have worked on enhancing brand recognition over the past year.[39]
Another Content Marketing Institute survey revealed 89% of B2B marketers now believe improving brand awareness to be more important than efforts directed at increasing sales.[40]
Increasing brand awareness is a focus of digital marketing strategy for a number of reasons:
• The growth of online shopping. A survey by Statista projects 230.5 million people in the United States will use the internet to shop, compare, and buy products by 2021,
up from 209.6 million in 2016.[41] Research from business software firm Salesforce found 87% of people began searches for products and brands on digital channels in 2018.[42]
• The role of digital interaction in customer behavior. It’s estimated that 70% of all retail purchases made in the U.S. are influenced to some degree by an interaction with a brand online.[43]
• The growing influence and role of brand awareness in online consumer decisionmaking: 82% of online shoppers searching for services give preference to brands they know of.[44]
• The use, convenience, and influence of social media. A recent report by Hootsuite estimated there were more than 3.4 billion active users on social media platforms, a 9% increase from 2018.[45] A 2019 survey by The Manifest states that 74% of social media users follow brands on social sites, and 96% of people who follow businesses also engage with those brands on social platforms.[46] According to Deloitte, one in three U.S. consumers are influenced by social media when buying a product, while 47% of millennials factor their interaction with a brand on social when making a purchase.[47]
Online methods used to build brand awareness
Digital marketing strategies may include the use of one or more online channels and techniques (omnichannel) to increase brand awareness among consumers.
Building brand awareness may involve such methods/tools as:
Search engine optimization (SEO)
Search engine optimization techniques may be used to improve the visibility of business websites and brand-related content for common industry-related search queries.
The importance of SEO to increase brand awareness is said to correlate with the growing influence of search results and search features like featured snippets, knowledge panels, and local SEO on customer behavior.[48]
Search engine marketing (SEM)
SEM, also known as PPC advertising, involves the purchase of ad space in prominent, visible positions atop search results pages and websites. Search ads have been shown to have a positive impact on brand recognition, awareness and conversions.[49]
Further information: Conversion as a service
33% of searchers who click on paid ads do so because they directly respond to their particular search query.[50]
Social media marketing
Social media marketing has the characteristics of being in the marketing state and interacting with consumers all the time, emphasizing content and interaction skills. The marketing process needs to be monitored, analyzed, summarized and managed in realtime, and the marketing target needs to be adjusted according to the real-time feedback from the market and consumers.[51] 70% of marketers list increasing brand awareness as their number one goal for marketing on social media platforms. Facebook, Instagram, Twitter, and YouTube are listed as the top platforms currently used by social media marketing teams.[citation needed] As of 2021, LinkedIn has been added as one of the most-used social media platforms by business leaders for its professional networking capabilities.[52]