Digital marketing activity is still growing across the world according to the headline global marketing index. Digital media continues to rapidly grow; while the marketing budgets are expanding, traditional media is declining (World Economics, 2015). Digital media helps brands reach consumers to engage with their product or service in a personalized way. Five areas, which are outlined as current industry practices that are often ineffective are prioritizing clicks, balancing search and display, understanding mobiles, targeting, viewability, brand safety and invalid traffic, and cross-platform measurement (Whiteside, 2016). Why these practices are ineffective and some ways around making these aspects effective are discussed surrounding the following points.
Prioritizing clicksPrioritizing clicks refers to display click ads, although advantageous by being ‘simple, fast and inexpensive’ rates for display ads in 2016 is only 0.10 percent in the United States. This means one in a thousand click ads are relevant therefore having little effect. This displays that marketing companies should not just use click ads to evaluate the effectiveness of display advertisements (Whiteside, 2016).
Balancing search and displayBalancing search and display for digital display ads are important; marketers tend to look at the last search and attribute all of the effectiveness to this. This then disregards other marketing efforts, which establish brand value within the consumer's mind. ComScore determined through drawing on data online, produced by over one hundred multichannel retailers that digital display marketing poses strengths when compared with or positioned alongside, paid search (Whiteside, 2016).This is why it is advised that when someone clicks on a display ad the company opens a landing page, not its home page. A landing page typically has something to draw the customer in to search beyond this page. Things such as free offers that the consumer can obtain through giving the company contact information so that they can use retargeting communication strategies (Square2Marketing, 2012).Commonly marketers see increased sales among people exposed to a search ad. But the fact of how many people you can reach with a display campaign compared to a search campaign should be considered. Multichannel retailers have an increased reach if the display is considered in synergy with search campaigns. Overall both search and display aspects are valued as display campaigns build awareness for the brand so that more people are likely to click on these digital ads when running a search campaign (Whiteside, 2016).
Understanding Mobiles: Understanding mobile devices is a significant aspect of digital marketing because smartphones and tablets are now responsible for 64% of the time US consumers are online (Whiteside, 2016). Apps provide a big opportunity as well a challenge for the marketers because firstly the app needs to be downloaded and secondly the person needs to actually use it. This may be difficult as ‘half the time spent on smartphone apps occurs on the individuals single most used app, and almost 85% of their time on the top four rated apps’ (Whiteside, 2016). Mobile advertising can assist in achieving a variety of commercial objectives and it is effective due to taking over the entire screen, and voice or status is likely to be considered highly; although the message must not be seen or thought of as intrusive (Whiteside, 2016). Disadvantages of digital media used on mobile devices also include limited creative capabilities and reach. Although there are many positive aspects including the user's entitlement to select product information, digital media creating a flexible message platform and there is potential for direct selling (Belch & Belch, 2012).
Cross-platform measurement: The number of marketing channels continues to expand, as measurement practices are growing in complexity. A cross-platform view must be used to unify audience measurement and media planning. Market researchers need to understand how the Omni-channel affects consumer's behavior, although when advertisements are on a consumer's device this does not get measured. Significant aspects of cross-platform measurement involve de-duplication and understanding that you have reached an incremental level with another platform, rather than delivering more impressions against people that have previously been reached (Whiteside, 2016). An example is ‘ESPN and comScore partnered on Project Blueprint discovering the sports broadcaster achieved a 21% increase in unduplicated daily reach thanks to digital advertising’ (Whiteside, 2016). Television and radio industries are the electronic media, which competes with digital and other technological advertising. Yet television advertising is not directly competing with online digital advertising due to being able to cross platform with digital technology. Radio also gains power through cross platforms, in online streaming content. Television and radio continue to persuade and affect the audience, across multiple platforms (Fill, Hughes, & De Franceso, 2013).
Targeting, viewability, brand safety, and invalid traffic: Targeting, viewability, brand safety and invalid traffic all are aspects used by marketers to help advocate digital advertising. Cookies are a form of digital advertising, which are tracking tools within desktop devices; causing difficulty, with shortcomings including deletion by web browsers, the inability to sort between multiple users of a device, inaccurate estimates for unique visitors, overstating reach, understanding frequency, problems with ad servers, which cannot distinguish between when cookies have been deleted and when consumers have not previously been exposed to an ad. Due to the inaccuracies influenced by cookies, demographics in the target market are low and vary (Whiteside, 2016). Another element, which is affected by digital marketing, is ‘viewabilty’ or whether the ad was actually seen by the consumer. Many ads are not seen by a consumer and may never reach the right demographic segment. Brand safety is another issue of whether or not the ad was produced in the context of being unethical or having offensive content. Recognizing fraud when an ad is exposed is another challenge marketers face. This relates to invalid traffic as premium sites are more effective at detecting fraudulent traffic, although non-premium sites are more so the problem (Whiteside, 2016).
ChannelsDigital marketing is facilitated by multiple channels, As an advertiser one's core objective is to find channels which result in maximum two-way communication and a better overall ROI for the brand. There are multiple online marketing channels available namely;
It is important for a firm to reach out to consumers and create a two-way communication model, as digital marketing allows consumers to give back feed back to the firm on a community-based site or straight directly to the firm via email. Firms should seek this long term communication relationship by using multiple forms of channels and using promotional strategies related to their target consumer as well as word-of mouth marketing.
Multichannel communicationsPush and pull message technologies can be used in conjunction.
Self-regulationThe ICC Code has integrated rules that apply to marketing communications using digital interactive media throughout the guidelines. There is also an entirely updated section dealing with issues specific to digital interactive media techniques and platforms. Code self-regulation on use of digital interactive media includes:
The whole idea of digital marketing can be a very important aspect of the overall communication between the consumer and the organization. This is due to digital marketing being able to reach vast numbers of potential consumers at one time.
Another advantage of digital marketing is that consumers are exposed to the brand and the product that is being advertised directly. To clarify the advertisement is easy to access as well it can be accessed any time any place.
However, with digital marketing, there are some setbacks to this type of strategy. One major setback that is identified, is that Digital marketing is highly dependent on the internet. This can be considered as a setback because the internet may not be accessible in certain areas or consumers may have a poor internet connection.
As well as digital marketing is being highly dependent on the Internet is that it is subject to a lot of clutter, so it marketers may find it hard to make their advertisements stand out, as well as get consumers to start conversations about an organizations brand image or products.
As digital marketing continues to grow and develop, brands take great advantage of using technology and the Internet as a successful way to communicate with its clients and allows them to increase the reach of who they can interact with and how they go about doing so. There are however disadvantages that are not commonly looked into due to how much a business relies on it. It is important for marketers to take into consideration both advantages and disadvantages of digital marketing when considering their marketing strategy and business goals.
An advantage of digital marketing is that the reach is so large that there are no limitations on the geographical reach it can have. This allows companies to become international and expand their customer reach to other countries other than the country it is based or originates from.
As mentioned earlier, technology and the internet allows for 24 hours a day, 7 days a week service for customers as well as enabling them to shop online at any hour of that day or night, not just when the shops are over and across the whole world. This is a huge advantage for retailers to utilize it and direct customers from the store to its online store. It has also opened up an opportunity for companies to only be online based rather than having an outlet or store due to the popularity and capabilities of digital marketing.
Another advantage is that digital marketing is easy to be measured allowing businesses to know the reach that their marketing is making, whether the digital marketing is working or not and the amount of activity and conversation that is involved.
With brands using the Internet space to reach their target customers; digital marketing has become a beneficial career option as well. At present, companies are more into hiring individuals familiar in implementing digital marketing strategies and this has led the stream to become a preferred choice amongst individuals inspiring institutes to come up and offer professional courses in Digital Marketing.
A disadvantage of digital advertising is a large amount of competing goods and services that are also using the same digital marketing strategies. For example, when someone searches for a specific product from a specific company online, if a similar company uses targeted advertising online then they can appear on the customer's home page, allowing the customer to look at alternative options for a cheaper price or better quality of the same product or a quicker way of finding what they want online.
Some companies can be portrayed by customers negatively as some consumers lack trust online due to the amount of advertising that appears on websites and social media that can be considered frauds. This can affect their image and reputation and make them out to look like a dishonest brand.
Another disadvantage is that even an individual or small group of people can harm the image of an established brand. For instance, Doppelganger is a term that is used to disapprove an image about a certain brand that is spread by anti-brand activists, bloggers, and opinion leaders. The word Doppelganger is a combination of two German words Doppel (double) and Ganger (WWalker), thus it means double walker or as in English, it is said to alter ego. Generally brand creates images for itself to emotionally appeal to their customers. However, some would disagree with this image and make alterations to this image and present in a funny or cynical way, hence distorting the brand image, hence creating a Doppelganger image, blog or content (Rindfleisch, 2016).
Two other practical limitations can be seen in the case of digital marketing. One, digital marketing is useful for specific categories of products, meaning only consumer goods can be propagated through digital channels.Industrial goods and pharmaceutical products can not be marketed through digital channels. Secondly, digital marketing disseminates only the information to the prospects most of whom do not have the purchasing authority/power. And hence the reflection of digital marketing into real sales volume is skeptical.
Measuring The Effectiveness of Digital Marketing Campaigns
Although the ultimate criteria to evaluate any business initiative should be its return on investment or any other financial metrics in general, the evaluation criteria and metrics for the digital marketing campaigns can be discussed in more details.
The criteria and metrics can be classified according to its type and time span. Regarding the type, we can either evaluate these campaigns "Quantitatively" or "Qualitatively". Quantitative metrics may include "Sales Volume" and "Revenue Increase/Decrease". While qualitative metrics may include the enhanced "Brand awareness, image, and health" as well as the "relationship with the customers".
Shifting the focus to the time span, we may need to measure some "Interim Metrics", which give us some insight during the journey itself, as well as we need to measure some "Final Metrics" at the end of the journey to inform users of the overall initiative was successful or not. As an example, most of the social media metrics and indicators such as likes, shares and engagement comments may be classified as interim metrics while the final increase/decrease in sales volume is clearly from the final category.
Of course, the correlation between these categories should exist. Otherwise, disappointing results may happen at the end in-spite of the illusion of success perceived early during the project.
Digital Marketing Strategy PlanningDigital marketing planning is a term used in marketing management. It describes the first stage of forming a digital marketing strategy for the wider digital marketing system. The difference between digital and traditional marketing planning is that it uses digitally based communication tools and technology such as Social, Web, Mobile, Scannable Surface. Nevertheless, both are aligned with the vision, the mission of the company and the overarching business strategy.
Stages of planningUsing Dr. Dave Chaffey’s approach, the Digital Marketing Planning (DMP) has three main stages; Opportunity, Strategy, and Action. He Suggests that any business looking to implement a successful digital marketing strategy must structure their plan by looking at opportunity, strategy, and action. This generic strategic approach often has phases of situation review, goal setting, strategy formulation, resource allocation and monitoring.
1) OpportunityTo create an effective DMP a business first needs to review the marketplace and set ‘SMART’ (Specific, Measurable, Actionable, Relevant and Time-Bound) objectives. They can set SMART objectives by reviewing the current benchmarks and Key Performance Indicators (KPIs) of the company and competitors. It is pertinent that the analytics used for the KPIs be customised to the type, objectives, mission, and vision of the company.,
Companies can scan for marketing and sales opportunities by reviewing their own outreach as well as influencer outreach. This means they have competitive advantage because they are able to analyze their co-marketers influence and brand associations
To cease opportunity, the firm should summarize their current customers’ personas and purchase journey from this they are able to deduce their digital marketing capability. This means they need to form a clear picture of where they are currently and how many resources they can allocate for their digital marketing strategy i.e. labor, time etc. By summarizing the purchase journey, they can also recognize gaps and growth for future marketing opportunities that will either meet objectives or propose new objectives and increase profit.
2) StrategyTo create a planned digital strategy, the company must review their digital proposition (what you are offering to consumers) and communicate it using digital customer targeting techniques. So, they must define online value proposition (OVP), this means the company must express clearly what they are offering customers online e.g. brand positioning.
The company should also (re)select target market segments and personas and define digital targeting approaches.
After doing this effectively, it is important to review the marketing mix for online options. The marketing mix comprises the 4Ps - Product, Price, Promotion, and Place. Some academics have added three additional elements to the traditional 4Ps of marketing Process, Place and Physical appearance making it 7Ps of marketing.
3) ActionThe third and final stage requires the firm to set a budget and management systems; these must be measurable touch points such as audience reach across all digital platforms. Furthermore, marketers must ensure the budget and management systems are integrating the paid, owned and earned media of the company. The Action and final stage of planning also require the company to set in place measurable content creation e.g. oral, visual or written online media.
After confirming the digital marketing plan, a scheduled format of digital communications e.g. Gantt Chart should be encoded throughout the internal operations of the company. This ensures that all platforms used to fall in line and complement each other for the succeeding stages of digital marketing strategy.
See also