[Link].

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A STUDY ON DIGITAL MARKETING AND IT’S

IMPACTS
* Ms. [Link]. , Department of commerce,(Assistant Professor)
**[Link]., Department of commerce,(Assistant Professor)
Kathir College of Arts and Science
Coimbatore - 62

Abstract-The purpose of this review paper is to study the impact of digital marketing and how
important it is for both consumers and marketers. This paper begins with an introduction of digital
marketing and then it highlights the mediums of digital marketing, the difference between traditional
and digital marketing, and the pros, cons, and importance of digital marketing in today’s era.

The world is shifting from analog to digital and marketing is no exception. As technology
development is increasing, the use of digital marketing, social media marketing, search engine
marketing is also increasing. Internet users are increasing rapidly and digital marketing has profited
the most because it mainly depends on the internet. Consumer’s buying behavior is changing and they
are more inclined towards digital marketing rather than traditional marketing.

Keywords—digital marketing, internet, online advertising, internet marketing

INTRODUCTION

Digital marketing is the component of marketing that utilizes internet and online based digital
technologies such as desktop computers, mobile phones and other digital media and platforms to promote
products and services. Its development during the 1990s and 2000s, changed the way brands and businesses
use technology for marketing. As digital platforms became increasingly incorporated into marketing plans and
everyday life,[4] and as people increasingly use digital devices instead of visiting physical shops, digital
marketing campaigns have become prevalent, employing combinations of search engine
optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, content
automation, campaign marketing, data-driven marketing, e-commerce marketing, social media
marketing, social media optimization, e-mail direct marketing, display advertising, e–books, and optical

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disks and games have become commonplace. Digital marketing extends to non-Internet channels that provide
digital media, such as television, mobile phones (SMS and MMS), callback, and on-hold mobile ring
tones. The extension to non-Internet channels differentiates digital marketing from online marketing.

VARIOUS COMPOENTS OF DIGITAL MARKETING

Search Engine Marketing

A search engine is a web based tool that helps the user to find the information they are looking for.
Examples of a search engine are Google, Yahoo, Bing, Baidu, etc. Search engine marketing refers to any
activity that increases a user's websites rank in any search engine .There is two types of Search engine
marketing search engine optimization (SEO) and paid search.

Email

There are several reasons why it’s so hard to dislodge email as a channel that delivers medium to high
ROI for your business, but the one thing you can’t take away from email is its versatility. Although email may not
be the newest technology available, it allows you to apply the latest trends in content marketing, such
as personalization and automation, without hurting your marketing budget mail also has the ability to support
other marketing objectives, so it’s no surprise that 73% and 63% of B2B marketers say that email is their top tool
for generating leads and driving revenue, respectively.

Beyond lead generation and revenue, email helps you in many more ways as follows:

 Email has become so widespread that it reached 3.9 billion users in 2020, and the figure is expected to
grow to 4.3 billion users in 2023—more than half of the world’s population!
 Email still delivers the best returns, with 73% of respondents of a study ranking the channel as excellent,
compared to SEO and paid search at 72% and 67%, respectively.
 Every $1 spent on email marketing, you can expect a $42 average return on investment.
 Up to 62% of opens are done on a mobile device, compared to 10% on desktop

Social Media

Social media marketing is on this list for some very worthwhile reasons, but this isn’t just about social
media users reaching the 3.81 billion mark. From being a channel that people use to establish personal
connections, social media has evolved into something grander, bigger, and better than what it was originally
envisioned to be.

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1Facebook: It is the number one social media platform. A company can promote their product and services on Facebook.
[Link]: Professional write their profiles on LinkedIn and can share with others. The company also build their profile and
LinkedIn connect these two dots companies and professionals.
[Link]+: It is Google’s social network, user can easily connect based on their common interest and friendship.
[Link]: Its strategy is to increase brand awareness and sales, attract new followers, and lead and boost conversions.

Affiliate Marketing
In affiliate marketing, the company rewards subsidiaries for every customer or visitor they bring to the
company's website by their marketing efforts or strategy on behalf of the company. According to Pat Flynn's
Smart Passive Income, "Affiliate marketing is the process of earning a commission by promoting other
people's (or company's) products. You find a product you like, promote it to others, and earn a piece of the
profit for each sale that you make" .

Online Display Advertising

In traditional marketing, there is a poster or billboard of any company on both sides of the road or an ad in
a magazine/newspaper to promote their product or service. Online display advertising is a digital version of
that. Today, a marketer can use online display advertising to achieve the same thing. There are different types
of display advertising such as video ads, banner ads, interactive ads, and rich media, etc. Display advertising
is great for catching the eye due to graphic ads.

COMPARISON BETWEEN TRADITIONAL AND DIGITAL MARKETING

Traditional marketing is the most recognizable form of marketing. Most people are used to traditional
marketing due to its longevity. Some examples of traditional marketing include tangible items like ads in a
newspaper or magazine. It also includes a billboard, brochure, commercial on TV or radio, poster, etc. It is a
non-digital way of marketing. Whereas digital marketing uses various digital channels to reach customers.
Some comparisons are given below:

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TRADITIONAL MARKETING DIGITAL MARKETING

Traditional Marketing refers to the marketing that Digital Marketing implies the marketing of
uses traditional channels or media, for the products and services via digital channels, such as
purpose of marketing communication. the internet, smartphone, display ads, and other
digital medium.

Static Dynamic

Slow Comparatively fast

Low Comparatively high

Cannot be measured easily. Can be measured easily.

Less effective more expensive Less expensive more effective

Not possible Possible

Standardized Customized

Not possible once the ad is placed. Can be performed anytime, even after the ad is
placed.

Local Global

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TRADITIONAL MARKETING DIGITAL MARKETING

Delayed results Quick and real-time results

Consumers cannot skip the ads, as they are bound Allows the consumers to avoid or skip the ads
to see them. which do not interest them.

One-way Communication Two-way Communication

Advantages of digital marketing

The main advantage of digital marketing is that a targeted audience can be reached in a cost-
effective and measurable way. Other digital marketing advantages include increasing brand loyalty and
driving online sales.

 Global reach - a website allows you to find new markets and trade globally for only a small
investment.
 Lower cost - a properly planned and well targeted digital marketing campaign can reach the right
customers at a much lower cost than traditional marketing methods.
 Trackable, measurable results - measuring your online marketing with web analytics and other
online metric tools makes it easier to establish how effective your campaign has been. You can obtain
detailed information about how customers use your website or respond to your advertising.
 Personalisation - if your customer database is linked to your website, then whenever someone visits
the site, you can greet them with targeted offers. The more they buy from you, the more you can refine
your customer profile and market effectively to them.
 Openness - by getting involved with social media and managing it carefully, you can build customer
loyalty and create a reputation for being easy to engage with.
 Social currency - digital marketing lets you create engaging campaigns using content
marketing tactics. This content (images, videos, articles) can gain social currency - being passed from
user to user and becoming viral.
 Improved conversion rates - if you have a website, then your customers are only ever a few clicks
away from making a purchase. Unlike other media which require people to get up and make a phone
call, or go to a shop, digital marketing can be seamless and immediate.
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Disadvantages of digital marketing

 Skills and training - You will need to ensure that your staff have the right knowledge and expertise to
carry out digital marketing with success. Tools, platforms and trends change rapidly and it's vital that
you keep up-to-date.
 Time consuming - tasks such as optimising online advertising campaigns and creating marketing
content can take up a lot of time. It's important to measure your results to ensure a return-on-
investment.
 High competition - while you can reach a global audience with digital marketing, you are also up
against global competition. It can be a challenge to stand out against competitors and to grab attention
among the many messages aimed at consumers online.
 Complaints and feedback - any negative feedback or criticism of your brand is can be visible to your
audience through social media and review websites. Carrying out effective customer service online
can be challenging. Negative comments or failure to respond effectively can damage your brand
reputation.
 Security and privacy issues - there are a number of legal considerations around collecting and using
customer data for digital marketing purposes.

Importance & Benefits of Digital Marketing

 Better Reach
Nowadays, many people across the world are spending their time online. They are browsing the
internet and looking for your products. In order to benefit from this massive audience base, maximising your
online presence is key. This is where digital marketing comes into the picture. Digital marketing is all about
reaching the right people at the right time. Hence, to begin with, one must have an engaging online store with
easy navigation to improve audience reach.
In this process, various mediums within digital marketing can eventually help in brand building – Pay
Per Click Marketing, Social Media Marketing, Search Engine Optimization, Content Marketing, and many
more.
 Can compete with large corporations
Analysing the competitor is a key activity in digital marketing. The activity is essential to keep up with
the competition especially amongst fast-growing brands such as Myntra, Amazon, Big basket, Walmart.
Businesses also try to push the envelope with multichannel marketing which comprises of PPC, SEO,
social media, and many more mediums. The approach helps both small and large businesses to achieve their
respective goals, leveling the field.

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 Increase in Brand Awareness for small businesses

Digital marketing is a boon to businesses. Large companies use digital marketing so that they could
stand steady in a competitive environment. In contrast, small businesses use online marketing to make
headway into a booming market and create brand awareness amongst large companies.
 Increase in Sales
One of the key aspects, when it comes to the importance of digital marketing, is that one can measure
their CRO (Conversion rate Optimisation) in real-time. The data can help understand the overall percentage of
searches that get converted into leads by buying products. PPC, Social media marketing, SEO services,
affiliate marketing are some of the active channels to communicate and get high conversions.
 Return on investment
If you want to know the value of digital media, look at the measurement metrics of profit and loss it
drives for business. The ROI in digital marketing defines the worth of your marketing campaigns. For
example, when compared with other mediums like e-mail marketing, content marketing, PPC, social media
campaigns; SEO has been known to generate higher ROI. From basic metrics such as sessions and bounce
rate, the organic traffic generated by the SEO shows 40% more revenue growth than any other marketing
strategies.
 Maintaining The Brand Reputation
Developing a strong brand reputation in the online world has become very important as the brand’s
reputation cements its ability to sustain in the market. Thereby, further reiterating the importance of digital
marketing in this aspect too.
 Can target ideal audiences
Imagine, reaching out to the right audience for your business’s niche is such a great opportunity. That is
exactly what digital marketing helps to achieve. You can analyze your audience’s behavior online and take
measures to deliver optimal fulfillment. When you reach the right audience group, you drive more traffic, and
that results in better campaigns.
 Get Ahead of Your Competitor
The digital market is incredibly competitive when it comes to online business, in particular. Hence, you would
want potential customers to find you with your best reviews and other measures initiated by various digital
marketing services. These measures can you and your customer to work towards the right business goals in
the end.
Also, for any successful business, one needs to make a track of their competitor’s activities. How do they
communicate with customers? What makes them unique? Competitor analysis can help you understand all the
aforementioned queries and develop strategies that work best in your favour.

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 Different Channels To Boost Your Traffic

One can use multiple different avenues to make their business successful in the marketing world. Business
owners have the freedom to avail SEO services, PPC Services, content marketing services, and even social
media campaigns to boost traffic on their website.
 Engagement with Mobile Customers
We are engaging ourselves in a portable world, as these days people carry their devices like smartphones and
laptops, on the go. After Google’s mobile-first update, almost all the websites are developed in a manner that
they are easily accessible on the mobile as well.
Perhaps, mobile users are more common now than ever before, and the chances are that mobile users are
likely to purchase.

CONCLUSION

Individuals are investing more in online content and companies that find it hard to digest this fact in
their advertising strategy need to adjust quickly. The more time individuals spend on the internet every year,
the more digital platform they use play an ever-developing function in their lives. The main aim of digital
India is to promote digital medium. Because people can use digital platform any time anywhere from the
world companies needs to change their marketing strategy from traditional to digital.

REFERENCES

1. Yasmin. S. Tasneem and K. Fatema, “Effectiveness of digital marketing in the challenging age: an
empirical study,” Journal of International Business Research and Marketing, vol. 1, no. 5, Apr., pp. 69-80,
2015.
2. Bhagowati and D. M. Dutta, “A study on literature review for identifying the factors impacting digital
marketing,” International Journal of Sales & Marketing Management Research and Development, Aug.,
vol. 8, no. 3, pp. 1-8, 2018.
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