Digital Marketing for your Businesses Growth
Digital Marketing and How valuable it is in the Growth of any Business
Today’s time of Internet has opened the gate of tremendous digital marketing opportunities for businesses by utilizing the different medium of digital marketing, and businesses cannot only share their product and services online; additionally, they can gain clients and customer for their business.
Let us have a look at the basics introduction of Digital Marketing.
Introduction of Digital Marketing
Digital marketing can be called the process of promoting products or services using electronic media, mainly on the Internet. Other platforms include digital displays, mobile phones, and any other digital medium. As the name implies, it makes use of digital technologies.
Digital marketing is often referred to as internet marketing, online marketing, or web marketing.
Click on below Video: Digital Marketing Tutorial for Beginners
Types of Digital Marketing
1. Search Engine Optimization (SEO)
SEO is the process of optimizing the design, structure and content of the website so the Search engines can index them precisely and position sites in the top results of SERPs. Also, SEO incorporates different promotional activities that boost the search engine ranking of the website.
SEO consists of the following activities:
- Site structure
- Keyword research and analysis and its use (on-page and off-page)
- Link building
- Content delivery
2. SMM (Social Media Marketing)
Social Network Marketing includes marketing strategies that use the different type of social media channels as a marketing tool for optimizing exposure of a brand, targeting audiences, conversions and returns. It can be done by adding social media links to the site content. It can also be done by promoting sites through social media channels by updating tweets, statuses, blog posts, photos and so on. SMM is considered the second most important digital marketing channels.
Click on below Video: Social Media Marketing
Social Media Marketing aids an online business get direct feedback from their client and customer on different social websites like Twitter, Facebook, Instagram, LinkedIn, YouTube, Google Plus etc.
The success of a social media marketing campaign is based on “Personal” interactions between the user and the business.
3. PPC (Pay Per Click)
Pay per click advertising is another important digital marketing channel that you need to understand while going through the introduction to digital marketing. In paid advertising, you need to pay each time when a user clicks on your Ad. The cost of each ad, or CPC (cost per click), depends on the quality score of the website and the selected keyword’s competition. You need to pay according to the bid amount, and one of the most popular PPC programs is Google AdWords.
4. Content Marketing (CM)
Content Marketing is one of the most important types of Digital Marketing. It is referred to the practice of delivering a quality piece of content to your users to generate leads and sales. This content can live anywhere online. A YouTube video, tweets, and blogs on your website all comprise content marketing. Content Marketing works because it blends exceptional content with the other types of digital marketing like SEO and SMM.
Target your audience in mind as you create content. Consider the language of your audience uses when they online search for information. Use these keywords to boost your SEO.
Content marketing is an ongoing exercise. It’s not always about selling and buying but more so about engaging and educating the consumer or client to build brand recognition, equity and trust. Creating relevant, quality content helps you stand out and also help to boosts your SEO.
Different channels covered in Content Marketing are-
- Online journals
- Social Media Sites
- Article Sites, etc.
Other channels under digital marketing include those like SMS marketing, video marketing, mobile marketing, Affiliate Marketing etc.
Click on below Video: How Long does Content Marketing take to Work?
5. Search Engine Marketing (SEM)
Search Engine Marketing is considered to cover both SEO and PPC work. SEO is traffic earned while PPC is paid traffic. Bringing in traffic to your website through search engines is no easy task, that’s why SEO and PPC work to look into bringing said traffic through both paid and unpaid. PPC paid advertising and SEO, which works on bringing in organic traffic.
6. Email Marketing (EM)
Email marketing is one of the most effective strategies to reach optimum users with least expenses. It is a type of direct marketing that utilizes email as a method for correspondence. Email marketing is a skilled approach to remain associated with customers and in the meantime advancing your services and business. With email marketing, marketers can likewise track how much percentage of individuals has demonstrated enthusiasm for item or administration. Proficient email marketing is considered a superior method for well-organised digital marketing campaigns.
Benefits of Digital Marketing
Digital marketing benefits businesses of all areas by giving access to the mass market at an affordable price.
1. Target your Audience
The main advantage of digital marketing is that targeted audience can be reached cost-effectively and measurably. Other digital marketing advantages include driving online sales and increasing brand loyalty
2. Track new Customers
You can track your potential customer’s actions and decisions with analytics from digital marketing, so you have real insight into your audience’s behavior.
3. Optimize for Conversion
The ability to track a client’s or customer’s journey beginning at the first click allows you to examine and optimize your website for conversion on an ongoing basis.
4. Realize Higher Revenue and ROI
Increasing your digital outreach is a more predictable form of raising your revenue. Additionally, digital marketing provides you with actual data, and predicting and realizing ROI (Return of Investment) is much easier performed with real data in hand.
5. Easily Analyze and Adapt
Digital marketing provides real, up-to-date data, you can analyze and adapt to trends and the actions that real people are taking. You don’t have to rely on a sample data set or make any educated guesses — plan, perform, and adapt on the go based on actual performance data.
6. Become more Competitive
Digital marketing shows are how businesses are running now and will continue to run in the future. If your business is not already in the digital marketing game, then you’re behind. Ensure your business is competitive by employing a smart digital marketing strategy.
Click on below Video: Digital Marketing Benefits
The basic equations that can help you to decide your digital marketing budget.
In this example, we are looking 10 sales per month. As a sales-based organization, and we know from our experience that we typically close to 1 out of 5, or 20%, of the leads that come through the website. So, basic on math, we divide there, and we need to acquire 50 leads per month through your website.
How many Leads do you need to hit Sales Goals
10 (Sale Per Month) ÷ 20% (Close Rate) = 50 (Lead Needed)
How many qualified website visitors do you need per month to generate 50 leads?
So we take the goal of 50 leads needed, and we can start to calculate how many visitors do we need on our website in a given month to hit that objective. With 50 leads, we know that our website converts about 1 out of 20, or 5%, of visitors to a qualified lead. So we can do the math here and figure it out that we need 1,000 visitors on the website each month that fit on our target market.
How many Qualified Website Visitors do you Need?
50 (Leads Needed) ÷ 5%(Website Convert Rate) = 1000 (Website Visitor Needed)
Now, we can start to estimate how much traffic we need to go out and purchase or receive. In a paid digital marketing channel, such as search, or paid social ads, or display, we are typically buying ads on a cost-per-click basis.
For 1,000 new visitors, we know that we would need to purchase 1,000 clicks. However, if we are buying ads on a cost per thousand bases, we know we need to go out and acquire the impressions or buy impressions, and that’s done based on the expected click-through rate that ads would achieve. So, we expect a 3% click-through rate on ads, and those thousand visitors are going to require 33,000 impressions, based on the cost-per-click model.
How many Click or Impressions do you need to Buy?
1000 (Website Visitors Needed) ÷ 3% (Ad CTR) = 33K (Ad impressions Needed)
Based on the cost-per-click (CPC) model in paid advertising or paid search, we can estimate in this example, about a 5 average CPC. So to acquire the 1000 visitors we need at 5 a piece, we need to spend about 5000 on paid media to drive enough to qualified visitors to your website to generate enough leads to generate enough sales for your business. When we do the math, we can estimate/calculate about a 500K cost per acquisition to acquire a new customer.
How much do you need to spend on Ads?
$5 (Cost Per Click) * 1K (Clicks) = 5K (Media Spend) = 500 (Cost per Acquisition)
Depending on if you are selling at low-cost widgets online that is a commodity, or if you are selling at high-end, then your cost per acquisition target is going to vary. But this is just a math model that you can plug and play with different numbers and scenarios to see how much you can afford to spend as a whole and then to acquire the relevant visitors. As you gather data, and your campaigns result, and your strategies develop, start to adjust these variables to figure out what you can do to improve your returns. So taking all of that into account, we hope you can see how easy it can be to decide your digital marketing budgets.
How to calculate Return on Investment (ROI) of your Digital Marketing
What is ‘Return on Investment (ROI)?
ROI is the most widely-used profitability indicator. The bottom line is determined by revenue, minus expenses, which equals profit.
Digital marketing also follows the same principles. As a digital marketer, it is your job to determine the best way to spend your money so that it generates more in profit than it costs.
Calculate Return on Investment
First Calculate how much you have spent on marketing activities.
You need to consider all your marketing costs, such as advertisement rates and design costs but also consider labour costs, additional resources and tools required to make your marketing activity. Compare your costs to how much capital (sales revenue and profits) you think can be attributed in your marketing activity and present it in a dollar term to see if it is worth it.
Sales Revenue – Marketing Costs = Marketing ROI
Lifetime Value of a Customer
The lifetime value of their customer is determined by knowing how much every customer spends with your business over the lifetime of their patronage.
Lifetime Revenue – Lifetime Expenses = Lifetime Value of a Customer
Sample Calculation ROI
- Annual Marketing Costs $10,000.00
- No of (Target) Leads in Year – 1000
- No of (Target) Conversions in Year – 300
- Marketing Cost Per Lead – $10.00
- Marketing Cost Per Conversion (Customer) – $33.33
- Average Value of Each New Customer – 12 Months (Sales Revenue) – $500.00
- Total Value of New Customers – 12 Months (Sales Revenue) – $150,000.00
- Overall Marketing ROI After – 12 Months – $140,000.00
- ROi of New Customers After Marketing Costs – 12 MONTHS – $466.67
- Marketing ROI% 1400.00%
How to target your Goal in Digital Marketing?
1. Digital Marketing for Brand awareness
- Engaging with the targeted audience through social channels
- Social media channels particularTwitter, Facebook and Google+
- Channels that promote visual elements like Instagram and Pinterest
- Channels that promote video materials likeYouTube andVimeo
- Promotional campaigns with coupons
- Joint venture marketing projects with other online businesses
- Participating in online and offline events
2. Digital Marketing for Lead Generation
- Search Engine Optimization (SEO)
- Pay-Per-Click Advertising
- Display Advertising
- Google Search Network
- Email marketing
- Blogging and other content marketing channels
3. Digital Marketing to Educate Potential Customers
- Press releases
- Email marketing
- Social media
Click on below Video: Setting SMART Goals for your Marketing and Business
4. Digital Marketing to generate Traffic
- Content Marketing
- Social Media Marketing
- Content Outreach
5. Digital Marketing for Sales Generation
- Facebook Storefront
- Google Shopping Feeds
- Google Search Network
- Google Display Network
- Affiliate Marketing Networks
The conclusion of digital marketing is so much important for digital marketers. Digital marketing is a growing field of business. It is nothing but the utilization of digital resources and tools to achieve marketing objectives. The above information will help digital marketers to understand the core role of Digital Marketing. After acquiring all the above knowledge, you may take the risk to invest in the digital market. Digital marketing may fulfil all your cherished goals within the short span of your time. You should have to keep patience to achieve your desired goals.
Click on below Video: Important skills to become Digital Marketer