What is Digital Marketing? Types and Examples
Digital marketing is the practice of promoting and selling products or services using digital channels like websites, mobile apps, social media, search engines, and other online platforms. It leverages the internet and various digital tools to reach and engage with potential customers.
While sharing many principles with traditional marketing, digital marketing offers new ways for companies to interact with consumers and understand their behavior. Many companies combine both traditional and digital marketing techniques in their strategies. Digital marketing gained popularity in the 1990s with the widespread adoption of the internet.
How Digital Marketing Works
Marketing involves a variety of methods used by companies to promote products and services, acquire customers, and increase market share. It requires both advertising expertise and sales acumen, and these tasks are handled by in-house teams or external marketing agencies.
Previously, companies primarily relied on print, television, and radio for marketing. The rise of the internet provided an additional avenue for reaching consumers, leading to the development of digital marketing.
New technologies and trends forced companies to adapt their marketing strategies and budgets. Email marketing gained traction early in the digital age. Subsequently, search engines like Netscape allowed businesses to use tags and keywords for visibility. The emergence of social media platforms like Facebook enabled user data tracking and targeted messaging.
Today, smartphones and portable devices enable companies to market products and services to consumers regardless of their location. A 2022 Pew Research Center study revealed that 76% of American adults had made online purchases using their mobile phones.
Types of Digital Marketing Channels
Digital marketing channels have evolved since the 1990s and continue to change. Here are eight of the most common channels:
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Website Marketing
A company’s website often serves as the core of its digital marketing activities. Effective websites are fast-loading, mobile-friendly, easy to navigate, and clearly communicate the brand and its offerings.
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Pay-Per-Click Advertising
Pay-per-click (PPC) advertising allows marketers to reach audiences on various digital platforms through paid ads. Marketers can create PPC campaigns on Google Ads, Bing Ads, LinkedIn, X (formerly Twitter), Pinterest, and Facebook to display ads to users searching for relevant terms. These campaigns can target users based on demographics, interests, or location. Google Ads and Facebook Ads are among the most popular PPC platforms.
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Content Marketing
Content marketing aims to engage potential customers with written, visual, or video content that they find interesting and relevant. This content, typically published on a website, is promoted via social media, email, search engine optimization (SEO), or PPC campaigns. Content marketing is often subtle, and the product or service may not be directly emphasized.
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Email Marketing
Email marketing is still a highly effective digital channel, though often associated with spam. Marketers use other digital channels to gather email list subscribers and nurture these leads into customers through email campaigns.
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Social Media Marketing
Social media marketing focuses on building brand awareness and establishing trust with an audience. It can also be used to generate leads and function as a direct marketing or sales channel. Examples include promoted posts and tweets.
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Affiliate Marketing
Affiliate marketing involves companies or individual influencers promoting another company’s products for a commission on sales or new leads generated. Many companies, like Amazon, operate affiliate programs.
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Video Marketing
Video marketing utilizes platforms like YouTube, Facebook Videos, Instagram, and TikTok. Consumers often turn to these sites for product information, reviews, or entertainment. Video marketing is most successful when integrated with SEO, content marketing, and broader social media campaigns.
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Text Messaging
Companies use text messages (SMS) to communicate product updates, promotions, and information. Non-profits and political candidates also use texting for fundraising and outreach. Many modern marketing campaigns enable payments or donations via text message.
Key Performance Indicators (KPIs) in Digital Marketing
Digital marketers use KPIs to measure their marketing initiatives and compare performance to competitors. Some common KPIs include:
- Click-through rate: The percentage of people who clicked on a particular ad compared to the total number who saw it.
- Conversion rate: The percentage of people who completed a desired action (e.g., purchase) compared to the total audience reached.
- Social media traffic: Measures engagement with a company’s social media profiles, including likes, follows, views, and shares.
- Website traffic: Tracks the number of visitors to a company’s website during a specific period, which can indicate the effectiveness of marketing efforts.
Digital Marketing Challenges
The digital world presents specific challenges for marketers, including: the rapid evolution of digital channels, the need to effectively use these channels, and the ability to analyze and use the large volumes of data collected. One of the biggest challenges is capturing the attention of consumers who are constantly bombarded with digital ads and other distractions.
What Is a Digital Marketing Agency?
A digital marketing agency specializes in marketing to consumers or businesses via digital channels. Their services include creating and launching campaigns through various means, such as social media, PPC advertising, videos, and websites.
What Is SEO in Digital Marketing?
Search engine optimization (SEO) refers to techniques used to increase website traffic and improve a site’s search engine ranking. Higher ranking sites are more likely to be seen and clicked by users.
What Is Internet Marketing?
Internet marketing is a subset of digital marketing that solely uses the internet to reach its target audience. Digital marketing encompasses various digital platforms, not just the internet.
How Can You Become a Digital Marketer?
Digital marketers need strong writing and social media skills, along with a good understanding of data analytics. A bachelor’s degree is generally required. Additional qualifications include digital marketing courses, boot camps, and internships. A master’s degree may be helpful but is not always essential.
What Skills Are Needed in Digital Marketing?
Effective digital marketers need excellent communication skills to convey a company or product’s message to potential customers. Strong data analytics skills help gauge campaign performance and identify areas for improvement. Social media skills are also a must.
What Is Implicit Bias in Digital Marketing?
Implicit bias (or unconscious bias) refers to unintentional messages that perpetuate negative stereotypes or derogatory attitudes towards certain groups. This issue is becoming increasingly important in marketing and advertising. Implicit bias may manifest through the selection of stock photos, using only images of heterosexual white individuals while excluding other groups. Even “unbiased” algorithms used in campaign creation may reflect the unconscious biases of their human creators.
The Bottom Line
Changes in media consumption in the 21st century have led marketers to increasingly prioritize digital platforms. While digital marketing shares some common ground with traditional methods, it has its own distinct set of tools that marketers need to master to succeed in the current environment.