Digital advertising is a targeted advertising strategy that is motivated by data and which helps companies to reach their customers in every income bracket and move these customers to a higher income bracket. You can use digital advertising in many ways ranging from increasing your brand awareness to increasing your sales or revenue. Digital advertising is different from traditional advertisements in several ways but it also shares some similarities to traditional advertising. These similarities include promoting your products or service to create brand awareness which eventually will result in increased sales.
There are several differences between these two channels. The most well-known differences are channels of displaying the ad. In the case of traditional advertising, you see these ads on TV, newspapers, and Billboards while it is displayed on social media platforms, search results pages, and some of the websites in the digital advertisement. The next big difference is that digital marketing provides businesses with a large amount of data and they can monitor the progress of these ads in real-time, Which is nearly impossible in the case of traditional advertising. So, traditional advertising delivers negligible in terms of data. You can also get to know several details about your customers such as demographics and spending habits which is impossible in traditional advertising. Due to these major differences, Businesses are now shifting to digital advertising from traditional advertising.
There are 4 types(Channels) of digital advertising. Search, display, social media, and influencers are these 4 types.
Your company can take advantage of one or more of these types of advertising. Many search engines allow you to place your paid ad on top of organic search results. In this way, you can target those customers which are starting their product research online. There are several ways you can improve your position among paid search results including keyword optimization and creating a better landing page. Next comes the display type of digital advertisements. In this channel of advertising, your ad will appear across various websites including YouTube. Since Google owns a significant amount of YouTube, You can target your customers on both these channels by displaying your ad on Google’s search engine. The third type of digital advertising channel is social media advertising. Many social media sites allow you to place your ad in the form of text, image, and video on their website. These sites include Facebook, Instagram, and LinkedIn.
This channel of advertising will help you increase your brand awareness among users. There are some platform-specific services in this channel. For example, you can use Cost per Follow(CPF) on Twitter if you are looking to earn more followers. LinkedIn also offers a service similar to this. Finally, you can also use influencers to promote your product or services. Businesses use these influencers because they carry the trust of the business’s target customers. They can recommend your product or services to their followers in an effective manner. They can use various pricing models. Some of them charge a flat-rate fee, in which you’ll be paying them some amount for promoting your product or service. Others can charge you according to the number of engagements on your post which they promoted. It is an effective method in both ways.
Why should you invest in digital advertising?
Now, we know all the insights about digital advertising. Let’s talk about the reasons that can motivate you to invest in digital advertising. Businesses invest in digital advertising for a number of reasons. Some of them are increasing brand awareness, improving sales, increasing repeated sales, and reaching your target market effectively and faster. Some other benefits include that It can be implemented for every budget bracket which is not possible in traditional advertisements. Another contrasting benefit is that you can monitor your progress in real-time and it delivers the results instantly. Considering all of the above reasons, your business must invest in digital advertising.
How does it work? Let’s take a deeper look into the functioning of digital advertising. The working method in digital advertisements is totally different from traditional advertising. Here, You pay the user only when He/She completes a desired action on your ad. You can also use advanced targeting methods in digital marketing to reach your target market efficiently. These methods are not possible in the case of traditional advertising. You can target your customers according to one or more out of demographics, keywords, interests and increase your sale revenue faster. There is a particular process to follow in order to succeed in this field.
These are some of the terms which you need to know before diving into digital marketing. These are discussed here. First is CTR which refers to Click through rate, which is defined as the fraction of people who clicked on your ad over the no. of people who saw that ad in percentage. Reach and impressions are similar terms. Reach refers to the no. of people who saw your ad and impressions are how many times your ad got displayed. If a person sees an ad twice, the reach will be one while impressions will be two. Clicks are the no. of clicks on your ad. CPC refers to Cost per click which is defined as the amount you are paying to get a click on your ad, CPA or Cost per acquisition is your average cost for acquiring a new customer. Conversion is the number of completions on your ad.
How much does this cost? This cost can be different for different businesses. However, on average, Small and Medium businesses spend around 9k-10k USD on digital marketing per month. Also, this can fit in every budget, So you don’t really need to worry about the budget constraint.
There are several steps that are vital to get success in digital advertising. These steps include researching naput target customers, working on the landing page, and having a killer copy of your ad. Well, there are also some of the challenges that are associated with success in digital advertising. These are ad blockers, People nowadays are using ad blockers to get rid of annoying ads that appear while browsing through the web. Saturated marketplaces and user privacy are some of the concerns that are adversely affecting the businesses adopting digital marketing.