Digital Marketing has changed the landscape of how we measure and value our marketing efforts. Digital marketing allows us to access a massive amount of insights and data about target audiences more intelligently than traditional methods.
Consider how much of our day is spent on connected devices; whether it’s our smartphones, TVs or, of course, computers. In 2005, the average adult spent 9 hours a week on the internet, including time spent on the internet at work. As of 2014, that number more than doubled to over 20 hours a week. Of course, these numbers are taking into consideration the whole population. If you look at a younger population, 16-24 for example, they currently spend, on average, more than 27 hours a week actively using digital media, the key to digital marketing success.
Now consider that no matter what you are using, or where you are, your data is being recorded and used to deliver selective information and advertisements to you. If you make a search on Google, your interests and search habits are being recorded. If you have your smartphone on you and driving, your device is tracking the places you are visiting and determining your potential shopping habits. When you are on Facebook, your family size, political interests and your likely income level is also being determined. For digital marketing, this amount of data is equivalent to a gold mine, and it offers many advantages over traditional marketing, for example:
It’s Specific: Your digital marketing efforts can reach a very specific and defined target audience. Every dollar will be a dollar well-spent.
It’s Measurable: Unlike traditional marketing, your digital marketing efforts can be analyzed to understand your ability in applying it correctly as measured by the impact it has had on your company’s bottom line.
It’s Cost-efficient: Digital marketing costs are significantly lower than traditional media. Traditional media has a limited amount of space and real estate that can be used for advertising, and therefore the costs are higher.
It’s Immediate: Digital marketing efforts can be modified and reviewed in real-time. Even simple mistakes like a typo are practically impossible to fix using traditional marketing without significant costs. On the other hand, even major strategic changes can be carried out on digital media relatively quickly.
All the previously-mentioned advantages, combined with the massive amount of data made available through online advertising platforms, mean that digital marketing is essential for any business in the current age.
Is Digital Marketing a Replacement for Other Marketing Efforts?
The answer is definitely not. Digital marketing is complementary to your marketing efforts. Very few things can replace the efforts of your sales staff, as well as good customer service and of course word-of-mouth. However, what digital marketing offers is a cheaper way to generate leads and approach customers. Ideally, you want to find a perfect balance and a good mix of digital and traditional marketing.
How Much Will Digital Marketing Cost Me?
One of the best things about digital marketing – you can determine exactly how much it will cost you. You can simply determine a budget to allocate towards digital marketing and no matter which platforms you use, you can set that budget as a maximum and not go over it.
When determining your budget, you want to consider the following:
• What is your primary objective?
• How much is a lead worth to you?
• How many leads do you need per month?
• Do you have any other ongoing marketing efforts?
• What is the percentage of leads that typically convert into a customer?
After considering these questions, simply multiply the worth of your leads by the number of leads you need to get. You can make that your starting point. Eventually, after a few weeks of digital marketing, you will need to asses if your cost per lead matches the value of a lead. You also want to compare conversion rates between leads coming in through digital marketing vs. traditional marketing. Make sure to consider overhead costs for each.
Using all this data, you can determine with ease if your digital marketing efforts are working. If you need more help, contact us now and we will be happy to help you with your digital marketing efforts!
Which platforms to choose?
Determining the right platforms for your digital marketing efforts is dependent on your business and your objectives. Even then, it is very likely that more than one platform will be of great benefit for you.
Don’t hesitate to contact us now if you need help with your digital marketing! We can help you allocate your efforts to the right place!