Take a moment and think about how you currently market your business. If you’re only promoting your company through traditional marketing methods, you’re missing an excellent opportunity to reach valuable leads through digital marketing.
The role of digital marketing is simple: help your business spend your marketing budget more effectively, obtain more valuable leads, and gain a higher return on investment (ROI) for your business.
On this post, we’ll explore the role of digital marketing and how it influences your business’s growth, revenue, and more. If you want to see how digital marketing can personally impact your business, contact us online or browse our digital marketing services.
What is the role of digital marketing?
The role of digital marketing is to help you garner new traffic, leads, and sales for your business by reaching people looking for your products and services. By itself, web marketing is the process of marketing your company online to prospective leads and high-value consumers.
Online marketing plays a vital role in helping your business grow. Considering that over 4.3 billion people are on the web and two billion of them are online shoppers, there are dozens of opportunities to reach people who are interested in your company.
How does digital marketing’s role impact your business?
Digital marketing strongly and positively impacts your business. When you invest in digital marketing, you’ll find that your digital marketing strategy plays a critical role in driving success for your business.
Let’s take a look at how digital marketing’s role impacts your business:
1. Digital marketing levels the playing field
Your business faces constant competition. When those competitors are corporations, like Walmart, Amazon, and Target, it feels impossible to try and compete with them. After all, they have more resources and funds available.
Digital marketing’s role levels the playing field for small to mid-size businesses. It allows your company to compete with corporations, as well as smaller companies, even if you have a more modest budget.
For instance, many businesses invest in search engine optimization (SEO) to help boost their site in search engine results. This practice is something that both big and small companies can do to attract and reach more valuable traffic.
So, you may be thinking, can’t a corporation buy its way to the top? Nope!
Search engine algorithms, like Google’s, focus on generating results based on their relevance to the user’s search. If your content is more relevant than a big corporation’s content, you will most likely rank higher in the search results.
Google doesn’t care how much money your business makes. Instead, it cares about providing searchers with the most relevant and helpful results for their search query. If Google didn’t deliver these kinds of results, people wouldn’t use it.
The same practice applies to Google’s pay-per-click (PPC) advertising program, Google Ads.
When you run a PPC ad, you get a position for your ad in the Google search results. Ideally, you want your ad to be in one of the first three spots because 41 percent of all clicks go to the top three paid ad spots.
PPC ads are another case where Google ranks on relevancy. You can outrank bigger competitors because your ad is more relevant to the search query. Your ad relevancy score, along with your bid amount, determines your placement and how much you pay for each click.
If you have a high ad relevancy score and a low maximum bid, you can outrank a large corporation with a low ad relevancy score but a high maximum bid. Corporations can’t buy these positions. Instead, everyone must make ads that resonate with their audience.
These are two examples where you can see how the role of digital marketing is to level the playing field for all businesses. It’s an excellent investment for your company because it allows you to compete against other competitors.
2. Digital marketing helps you earn an impressive ROI
Digital marketing’s role also focuses on helping you make more money from your marketing efforts. In comparison to traditional marketing, online marketing is extremely cost-effective, offering an impressive return on investment (ROI).
If you do digital marketing in-house, it costs time rather than money. You can run a social media marketing campaign or a content marketing campaign on your own, but it will cost you a lot of time to build, launch, measure, and manage an effective campaign.
Even if you invest in paid campaigns, you’re in complete control of the costs.
For social advertising campaigns and PPC campaigns, you set a budget that works for your business. It’s important to know that what you spend is what you get, so you’ll need to set a budget that’s accurate for your company and industry.
These digital marketing methods provide an excellent return on investment (ROI) for your business, too. Transitioning your budget to online marketing, rather than traditional marketing, enables you to earn a lot in return.
For instance, email marketing has the potential to earn your business $44 for every $1 spent!
You can’t overlook the importance of digital marketing when it comes to your bottom line. Not only does it optimize your marketing budget, but it also allows you to get a bigger ROI for your business.
3. Digital marketing allows you to reach people where they are
The role of digital marketing also helps you connect with people interested in your business.
Traditional methods make it challenging for you to advertise to the people looking for your products or services. Digital marketing, however, allows you to focus on the people interested in your products or services.
Traditional methods make it difficult for you to reach people interested in your business. You end up spending money to market to leads that may not want your products or services.
For instance, if you post a billboard on a highway, you’re targeting anyone who uses the highway, whether they want your products or services or not.
With digital marketing, you’re reaching people interested in your business. These marketing methods allow you to target the people that want your products or services.
If you run a PPC campaign, you can target people specifically that you know are interested in your products or services and reach them directly. You’re reaching people who are actively searching for your business, rather than driving by your billboard.
You can establish a target audience, which is the group of people you think are interested in your business. Based on this information, you can advertise your company to people that fit your target market.
Targeting allows you to save time and money. You will only reach people that need your business. It will help you drive better results from your campaign and generate a better ROI for your company.
4. Digital marketing allows you to track its effectiveness
As you look at the different roles of digital marketing, you’ll discover that online marketing also makes it easy for you to monitor the effectiveness of your campaigns.
Whenever you run an advertising or marketing campaign, you want to know if it’s driving results.
Traditional marketing methods make this difficult because you can’t know if your efforts persuaded your audience. You would have to survey every person that comes into your store or contacts your company and ask them how they heard about you, which is time-consuming.
With digital marketing, you can monitor your campaigns in real-time to see if they work.
You can track a variety of metrics, depending on the type of campaign. Some basic metrics include impressions, traffic, clicks, dwell time, and conversions. All these metrics give you valuable insight into the effectiveness of your campaign.
When you partner with an online marketing agency, like WebFX, you’ll receive access to valuable marketing tools, like MarketingCloudFX. Tools like these allow you to compile performance information all in one place, as well as track valuable metrics.
If you like to see the impact of your campaigns, this is the most critical role of digital marketing.
You will always know whether your campaign is driving results for your business. It’s a great feature because it provides your team with the ability to change your campaign to drive better results.
Learn more about the role of digital marketing
As the web continues to evolve, your business must adapt to meet those changes. The best way to adjust is by adopting a digital marketing campaign. A strong online marketing campaign will help your company obtain more valuable leads and sales, plus increase conversions.
In this post, we covered the role of digital marketing and a few of the ways that role impacts your business. There are numerous other ways that Internet marketing can positively impact your company and help you grow.
If you want to learn more about how digital marketing plays a positive role in helping your business grow, contact us online to learn how a custom digital marketing plan will take your company to new heights!