Digital marketing: basic concepts and tools

Digital marketing: basic concepts and tools

Digital technologies are rapidly evolving, making digital marketing an essential tool for business promotion. This concept refers to a set of strategies and tactics aimed at interacting with customers in the digital environment. Many people believe that digital marketing is internet marketing, but in reality, there are differences. Digital marketing encompasses a broader range of tools, including online and TV advertising, mobile platforms, and marketing automation processes.

The average annual growth rate of digital marketing is expected to be 17.6% from 2021 to 2026, with the market size reaching $807 billion by 2026. This confirms that digital marketing tools are becoming the basis for brand promotion. They allow companies to attract new customers, analyze their behavior, and improve the effectiveness of marketing strategies.

Main directions of digital marketing

Digital marketing covers various tools and strategies that help brands achieve their goals.

SEO — Search Engine Optimization

Search Engine Optimization is a set of measures aimed at improving a website's ranking in search engine results. SEO promotion includes two main directions:

➤ Internal — working with content, structure, and technical aspects of the site to improve its usability and attractiveness for search engines.
➤ External — improving brand reputation through publications with backlinks on authoritative resources and interaction on social media and forums.

The main difficulty of SEO is changes in Google algorithms, so it is always important to monitor site performance and adjust the strategy.

PPC advertising — contextual advertising

Contextual advertising makes it possible to display ads in search engines and on partner sites. Google Ads and Bing Ads are the leading platforms today. The PPC model entails paying for each click, serving as an effective tool for quick customer attraction.  

PPC optimization enables visibility in Google search results for relevant queries without the need for SEO optimization. Nevertheless, this approach requires financial investment. At the same time, it provides the option to set daily and monthly spending limits.

SMM marketing — in social networks

SMM is the promotion of business on social media platforms, aimed at building trustful relationships with the audience, attracting new customers, and increasing online sales. This tool helps brands be “closer” to their users. Key elements of SMM:

➤ Content strategy — developing a publication plan based on the interests and needs of the target audience.
➤ Engagement with followers — working with comments, direct messages, and interactive formats (polls, quizzes, challenges).
➤ Strategy analysis and adjustment — studying performance metrics, reach, and conversions to improve results.
➤ Social media advertising — promotion through targeted campaigns.

SMM not only promotes products and services but also shapes the company's image, makes the brand recognizable, and attracts loyal customers.

Email marketing — automated newsletters and sales funnels

Email newsletters allow businesses to engage with their target audience. The key is to build a subscriber list not based on random email addresses, but with individuals who have already shown interest in the brand. Email automation helps to:

➤ Inform the audience about new products and company events.
➤ Notify about promotions, discounts, and special offers.
➤ Provide valuable content — tips, life hacks, or exclusive materials.

Email addresses can be collected through website chats or forms, pop-up windows, social media posts, and chatbots.

Content marketing — creating useful content to attract an audience

This form of digital marketing is a way to attract a target audience using different content. Its main tools are:

✓ SEO-optimized articles on the website and blog;
✓ videos;
✓ podcasts;
✓ webinars;
✓ case studies;
✓ infographics;
✓ e-books, guides, checklists.

Content should not only promote sales but also provide value. But try to avoid excessive advertising so as not to alienate users.

Video marketing — promotion via YouTube, TikTok, Reels

Photo 1 - Digital marketing: basic concepts and tools

Video content can be published on YouTube, as well as platforms such as Facebook, Instagram, TikTok, etc. Feel free to try the following tools:

✓ product or service demonstration videos;
✓ brand advertising in video format;
✓ coverage of important company events;
✓ interviews with experts or influential figures in your niche;
✓ educational videos for clients;
✓ 360° and VR videos;
✓ video testimonials from satisfied clients;
✓ animated videos highlighting the benefits of working with the company.

Content should be selected considering the viewers' interests and the social network you opt for posting.

Affiliate marketing — affiliate programs and CPA models

Affiliate digital marketing, or affiliate marketing, originated from offline business models. The essence of this method is that you earn a commission for promoting products or services from partners on your website, YouTube channel, or social media. This type of collaboration is mutually beneficial: one party receives advertising exposure, while the other is rewarded for attracting customers.

Influencer marketing — collaboration with bloggers and opinion leaders

Influencer marketing is digital promotion through opinion leaders who have already gained the trust of your target audience. They mention your product, create reviews, or advertise it on their social media platforms. A campaign that involves opinion leaders with large followings allows for effective brand promotion.

Programmatic advertising — automated ad buying

Programmatic advertising is an automated system for purchasing ad placements using AI marketing. Algorithms analyze user data and, in real time, select the best platforms to display ads. Such digital promotion offers several advantages:

✓ targeting accuracy — ads are shown only to the audience that matches the specified parameters (age, interests, geolocation, etc.);
✓ budget efficiency — algorithms analyze the effectiveness of platforms and redistribute the budget in favor of those with higher conversion rates;
✓ speed — the system automatically purchases ad placements in milliseconds through auctions.

Programmatic buying is usually used for banners, video ads, mobile app ads, and even digital billboards.

Mobile marketing — promotion through mobile apps and SMS campaigns

Smartphones have become the primary tool for most internet users, making mobile marketing very impactful. It includes SMS campaigns, social media ads, mobile websites, and apps. The basic tools for successful promotion are:

✓ responsive website and email newsletter design;
✓ user-friendly mobile apps;
✓ targeted advertising on social media.

The share of mobile traffic is growing, so ignoring this marketing channel is not an option.

Key tools of digital marketing

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To succeed in digital marketing, it's crucial to effectively use key tools that help analyze data, manage campaigns, and engage with customers.

CategoryTools  Purpose
AnalyticsGoogle AnalyticsTraffic and user behavior analysis
AdvertisingGoogle Ads, Facebook Ads ManagerAdvertising campaign management
SEOAhrefs, Semrush, MozCompetitor analysis and keyword selection
CRM systemsHubSpot, Salesforce, PipedriveCustomer and sales management
Email marketing Mailchimp, GetResponse, SendPulseAutomation of email newsletters
ChatbotsManyChat, Tidio, DriftAutomation of communication with clients
Behavior analysisHotjar, Crazy EggHeatmaps and behavioral analytics

These tools help optimize marketing strategies, attract customers, and increase conversion.

The importance of digital analytics in marketing

Analytics allows marketers to assess whether the goal of digital marketing has been achieved. It helps measure the effectiveness of campaigns, adjust strategies, and increase conversion. Various metrics are used for such an assessment. Among the main ones:

➤ CTR (Click-Through Rate). Measures audience engagement. It shows how many users clicked on the ad relative to the number of times it was shown.
➤ CPC (Cost Per Click). Part of eCommerce metrics. It defines the cost of one click on the ad. The lower the CPC, the more efficient the campaign is in terms of spending.
➤ CPA (Cost Per Acquisition). Determines the cost of acquiring one customer. This metric helps evaluate the profitability of advertising spending.
➤ ROI (Return on Investment). Helps assess the success of a campaign, i.e., the return on marketing investments.
➤ LTV (Lifetime Value). A metric that defines the total revenue a customer brings over their entire relationship with the company. If LTV exceeds CPA, the business is profitable.
➤ Churn Rate. Indicates the percentage of customers who stopped using the company’s services.

Digital metrics analysis helps optimize advertising budgets, improve targeting and personalization, as well as increase engagement. Thanks to it, you can pinpoint weaknesses in the sales funnel, boost conversion rates, and develop a profitable customer retention strategy.

How to build a digital marketing strategy

Developing a successful digital marketing strategy involves the following steps:

➤ Defining goals and milestones. These could include traffic growth, increased sales, improved brand awareness, or other objectives.
➤ Defining the target audience (Customer Persona). It’s essential to create a detailed customer profile, taking into account factors like age, gender, income level, location, and others.
➤ Competitor analysis. This helps understand their strengths and weaknesses, while also revealing opportunities to enhance your own strategy.
➤ Creating a sales funnel. The customer journey refers to the process a buyer goes through, from their first interaction with the brand to making a purchase. At each stage of the digital funnel, various promotional tools can be employed.
➤ Choosing promotion channels. Regardless of the type, each channel should be tailored to the characteristics of your target audience.
➤ Setting up and testing advertising campaigns. This will help identify the optimal configuration, reduce advertising costs, and increase conversions.

After creating a digital strategy, it is essential to consistently assess its efficacy.

Every year, digital marketing and media undergo a transformation, bringing new technologies and approaches. The main trends of the current year are:

➤ Artificial Intelligence and Personalization. Marketers use AI to create unique offers for each customer by analyzing their behavior, preferences, and past purchases.
➤ Voice Search. To attract more traffic, SEO specialists will need to adjust their strategies by focusing on long-tail keywords and optimizing for voice search.
➤ Micro-Video and Interactive Content. Stories or TikTok are key tools for capturing audience attention. Quizzes, polls, or games allow users to actively engage with the brand.
➤ Big Data. It allows gathering information about customer behavior, preferences, social interactions, and more.
➤ Metaverses and AR/VR Technologies. Brands are actively creating virtual stores, exhibitions, and unique branding spaces within the metaverse. This enables users to interact with products in new formats.

Digital marketing is a powerful tool that, in the context of digital transformation, becomes key to a company's growth and competitiveness. Don't forget to test different approaches, try new tools, and analyze results to create more effective strategies. Continuous development in the field of digital marketing will help your business stay one step ahead of the competition.

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