Why invest in digital marketing?

Published on 15/06/2022 by Ojasvini

In today’s online landscape, digital marketing strategies might help businesses connect with their customers effectively. This article will talk about digital marketing benefits, and why companies should invest in it. We have also listed a few steps that could help small to midsize enterprises (SMEs) create an efficient digital marketing strategy.

Marketing planning software can help businesses streamline their digital marketing strategies

If you’re ever looking for information, it’s likely that you’ll end up on the internet. The digital space is vast and to potentially cut through the clutter of this fast-moving digital world, businesses might need an effective marketing strategy. A well-planned digital marketing strategy and appropriate marketing planning software might help businesses in such a case. 

According to GlobeNewswire, ‘the global digital advertising and marketing market is expected to reach $786.2 billion by 2026’. This data might indicate that as more people turn to online platforms, it might allow businesses to connect with their target audience effectively through the digital marketing approach.

The ‘what’ and ‘why’ of digital marketing

Digital marketing is a field of online marketing that includes digital channels —such as social media, email marketing, and advertisements— to promote products and services and potentially reach more customers. 

Well-executed digital marketing practices might help businesses become more visible on social media channels and search engine result pages. These might be the platforms where potential buyers can usually be targeted. One of the key benefits of digital marketing for small businesses could be that it is usually trackable and measurable and thus may help brands understand whether such strategies are worth investing in or not.

What does marketing planning software do?

Marketing planning tools can help businesses streamline their marketing strategies, objectives, budgets, and analyse their effectiveness against different criteria. These tools can also help organisations in campaign tracking, analytics, media planning, and forecasting.

In addition to this, some such tools offer many benefits including managing business calendars, project management, third-party integrations with other applications, and tracking and organising marketing workflows.

5 Reasons companies should invest in digital marketing

Continuing digitalisation might have impacted how businesses carry out their day-to-day tasks. Digital marketing strategies could perhaps help businesses form an effective connection with multiple stakeholders within the market. Below we have listed some reasons why companies should invest in digital marketing. This section also covers some of the benefits of a digital marketing strategy.

1. Can potentially help reach a wider target audience

As per Statista, internet users in Australia could go beyond 23.3 million by 2025. This statistic could indicate that the audience relying on the internet today is vast, and to target them, businesses would require an effective digital marketing plan. For instance, targeted ads and other digital content might help businesses attract new audiences to their landing pages. In addition to this, you can also use call to action (CTA) buttons in your marketing strategy, to drive more page visits.

2. Can help in effective customer engagement

There might be many different digital marketing tools, such as search engine optimisation (SEO), social media marketing, email marketing, and graphic creation tools. Such tools offer varied features to users, considering the target audience’s needs, and can also help organisations understand customer behaviour and interact with them effectively. For instance, with the help of a social media marketing tool, businesses can automate the tracking and management of online campaigns via multiple mediums such as Twitter, Facebook, and YouTube. 

Such tools can also help in choosing relevant keywords, managing customer relationships, building a business calendar, scheduling social media posts, and analysing content performance.

3. Rise in the number of online mobile users

According to an Australian Communications and Media Authority (ACMA) report, ‘mobile phones were the most commonly used device to connect to the internet’. The report also mentions that ‘93% of Australians used a mobile phone to go online in the 6 months to June 2021, up from 84% in 2017’. This data indicates that there has been a significant increase in the number of online mobile users over the years. In such a case, a constructive digital marketing strategy customised for mobile use can help businesses specifically target these users via platforms such as paid advertisements and survey links.

4. Can be used to measure campaign effectiveness

Digital marketing might allow businesses to analyse the effectiveness of different campaigns, be it performance via social media campaigns, paid advertising, or organic traffic on SEO blogs. There might be various tools SMEs can use to calculate the results. For instance, to check the overall performance of an SEO-focussed blog article, businesses can use Google Analytics to understand how the blog has been performing and then implement any required changes.

5. Can be cheaper than other outbound marketing strategies

An outbound marketing strategy would mainly involve reaching out to users directly to draw their interest in your product. In contrast, digital marketing would include putting out interactive content on your website to attract customers’ attention organically. Some forms of digital marketing, such as email marketing and social media advertising, might be comparatively more cost-effective than traditional marketing methods.

For instance, with traditional marketing strategies such as print advertising, you might not be able to track and analyse how many users have seen your content or the possibility of potential leads from it. However, you might still be spending money on it. With digital marketing, you might be able to analyse whether a particular campaign is right for you and then spend your money accordingly.

How to create a digital marketing strategy

Organisations can create different digital marketing strategies as per their business needs. Now that we have talked about the benefits of digital marketing, we have listed down some steps on how to invest in it and create a business-centric strategy.

Step 1: Identify your goals and objectives

You might first need to identify your business objectives and plan accordingly. A streamlined digital marketing plan might provide you with the opportunity to well-serve the right set of audiences. You might need to ask yourself a few questions, such as what your objective is, why you want a digital marketing strategy, what you expect out of it, and more. You should ideally clearly define your goals before moving forward.

Step 2: Know your target audience

The next step would be to understand who the people you are targeting are. For instance, a small business owner who sells kids’ apparel would ideally target parents who have children rather than the general public at large. Here, you might also need to figure out your audience’s engagement level and preference as to which media platform they would most likely be consuming digital content from.

Step 3: Understand the type of digital marketing strategy required

This step includes deciding on the type of digital marketing strategy your business would need. It may depend on your brand requirements, your budget, and the group of people you plan to target. You could choose one or two methods or combine different strategies. As per Southern New Hampshire University, digital marketing can be categorised into eight different types. For instance, you could combine content marketing with SEO practices or opt for a combination of affiliate and email marketing and accordingly analyse what works best for your business.

Step 4: Set a budget for each marketing campaign

At this stage, you should set a separate budget for each marketing campaign you plan to launch. For instance, you should ideally have a different budget for social media advertising and content marketing as per your business needs. Considering potential future gains, you might also need to decide what percentage of your total budget should be set aside for each campaign.

Step 5: Create content that encourages customer engagement

The next step would be to create content for your campaigns. You might need to decide what content would be best for which particular platform. For instance, visual content —such as videos and images— might work well for your social media campaigns. According to an article by Small Business Rainmaker, ‘infographics are read 30 times more than text-based content’. This might indicate that content that has relevant visuals might gain more attention from the viewers.

Step 6: Focus on keyword research and hashtags

A constructive digital marketing strategy might include engaging with your target audience via personalised content, which can be done through effective keyword research. For instance, for SEO purposes, businesses can use keywords to target a specific group of people, ensuring the ideal target audience finds your content via search results. Similarly, businesses can find relevant and trending hashtags and incorporate them into their content to reach wider audiences on Instagram and other social media channels like Twitter and YouTube.

Step 7: Measure campaign effectiveness

After launching your campaign, you may be able to measure its effectiveness using metrics such as engagement rate, website traffic, clicks, impressions, and other social media analytics tools. Such tools might help businesses analyse data on how people engage with their content and other social media trends.

Digital marketing: An expense or investment?

Mindful and thorough planning of your digital marketing campaigns might help your business reach its target audience through different channels. However, businesses should invest in digital marketing strategies as per their brand requirements and budget. Brands should ideally dedicate their time to careful planning to scale their marketing initiatives and promote business growth.

Looking for marketing planning software? Check out our catalogue!

This article may refer to products, programs or services that are not available in your country, or that may be restricted under the laws or regulations of your country. We suggest that you consult the software provider directly for information regarding product availability and compliance with local laws.

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About the author

Content Analyst for Australia. Focusing on insights about software technolgies critical to SMEs. Insipred by growing tech trends and how these help SMEs to grow.

Content Analyst for Australia. Focusing on insights about software technolgies critical to SMEs. Insipred by growing tech trends and how these help SMEs to grow.