What is digital marketing?
Essentially, if a marketing campaign involves digital communication.
Digital marketing typically refers to online marketing campaigns that appear on a computer, phone, tablet, or other device. It can take many forms, including online video, display ads, search engine marketing, paid social ads and social media posts.
Digital marketing is often compared to “traditional marketing” such as magazine ads, billboards, and direct mail. Oddly, television is usually lumped in with traditional marketing.
Inbound marketing versus digital marketing
Digital marketing and inbound marketing are easily confused, and for good reason. Digital marketing uses many of the same tools as inbound marketing—email and online content, to name a few. Both exist to capture the attention of prospects through the buyer’s journey and turn them into customers. But the two approaches take different views of the relationship between the tool and the goal.
Digital marketing considers how individual tools or digital channels can convert prospects. A brand’s digital marketing strategy may use multiple platforms or focus all of its efforts on one platform. For example, a company may primarily create content for social media platforms and email marketing campaigns while ignoring other digital marketing avenues.
On the other hand, inbound marketing is a holistic concept. It considers the goal first, then looks at the available tools to determine which will effectively reach target customers, and then at which stage of the sales funnel that should happen. As an example, say you want to increase website traffic to generate more prospects and leads. You can focus on search engine optimization when developing your content marketing strategy, resulting in more optimized content, including blogs, landing pages, and more.
The most important thing to remember about digital marketing and inbound marketing is that as a marketing professional, you don’t have to choose between the two. In fact, they work best together. Inbound marketing provides structure and purpose for effective digital marketing to digital marketing efforts, making sure that each digital marketing channel works toward a goal.
Why is digital marketing important?
Any type of marketing can help your business thrive. However, digital marketing has become increasingly important because of how accessible digital channels are. In fact, there were 5.45 billion internet users globally as of July 2024.
From social media to text messages, there are many ways to use digital marketing tactics in order to communicate with your target audience. Additionally, digital marketing has minimal upfront costs, making it a cost-effective marketing technique for small businesses.
B2B versus B2C digital marketing
Digital marketing strategies work for B2B (business to business) as well as B2C (business to consumer) companies, but best practices differ significantly between the two. Here’s a closer look at how digital marketing is used in B2B and B2C marketing strategies:
- B2B clients tend to have longer decision-making processes, and thus longer sales funnels. Relationship-building strategies work better for these clients, whereas B2C customers tend to respond better to short-term offers and messages.
- B2B transactions are usually based on logic and evidence, which is what skilled B2B digital marketers present. B2C content is more likely to be emotionally-based, focusing on making the customer feel good about a purchase.
- B2B decisions tend to need more than 1 person’s input. The marketing materials that best drive these decisions tend to be shareable and downloadable. B2C customers, on the other hand, favor one-on-one connections with a brand.
Of course, there are exceptions to every rule. A B2C company with a high-ticket product, such as a car or computer, might offer more informative and serious content. As a result, your digital marketing strategy always needs to be geared toward your own customer base, whether you’re B2B or B2C.
Take a look at your current audience to create well-informed and targeted online marketing campaigns. Doing so ensures your marketing efforts are effective and you can capture the attention of potential customers.
Types of digital marketing
There are as many specializations within digital marketing as there are ways of interacting using digital media. Here are a few key examples of types of digital marketing tactics.
Search engine optimization
Search engine optimization, or SEO, is technically a marketing tool rather than a form of marketing in itself. It is often called “an art and a science.”
The “science” part of SEO is what’s most important. SEO is a science because it requires you to research and weigh different contributing factors to achieve the highest possible ranking on a search engine results page (SERP).
Today, the most important elements to consider when optimizing a web page for search engines include:
- Quality and uniqueness of content
- Optimization of key elements for the targeted keyword (URL, title tag, H1, sub headlines)
- Level of user engagement (time on page, bounce rate)
- Number and quality of backlinks
- Internal linking
In addition to the elements above, you need to prioritize technical SEO, which is all the back-end components of your site. This includes mobile-friendliness and loading times. Improving your technical SEO can help search engines better navigate and crawl your site.
The strategic use of these factors makes search engine optimization a science, but the unpredictability involved makes it an “art” that often requires experienced SEO professionals.
Ultimately, the goal is to rank at or near the top of the first page of a search engine’s result page or in Google’s AI Overviews. This ensures that those searching for a specific query related to your brand can easily find your products or services. While there are many search engines, digital marketers often focus on Google since it’s a global leader in the search engine market.
Google and other search engines change their algorithm almost constantly, so SEO is a never-ending progress. And your competitors most likely also invest in SEO. What you can do is closely monitor your page’s performance and make adjustments as needed.
Content marketing
As mentioned, the quality of your content is a key component of an optimized page. As a result, SEO is a major factor in content marketing, a strategy based on the distribution of relevant and valuable content to a target audience.
As in any marketing strategy, the goal of content marketing is to attract leads that ultimately convert into customers. But it does so differently than traditional advertising. Instead of enticing prospects with potential value from a product or service, it offers value for free in the form of written material, such as:
- Blog posts
- E-books
- Newsletters
- Video or audio transcripts
- Whitepapers
- Infographics
Content marketing matters, and there are plenty of stats to prove it:
- 84% of consumers expect companies to produce entertaining and helpful content experiences
- 62% of companies that have at least 5,000 employees produce content daily
- 92% of marketers believe that their company values content as an important asset
As effective as content marketing is, it can be tricky. Content marketing writers need to be able to rank highly in search engine results while also engaging people who will read the material, share it, and interact further with the brand. When the content is relevant, it can establish strong relationships throughout the pipeline.
To create effective content that’s highly relevant and engaging, it’s important to identify your audience. Who are you ultimately trying to reach with your content marketing efforts? Once you have a better grasp of your audience, you can determine the type of content you’ll create. You can use many formats of content in your content marketing, including videos, blog posts, printable worksheets, and more.
Regardless of which content you create, it’s a good idea to follow content marketing best practices. This means making content that’s grammatically correct, free of errors, easy to understand, relevant, and interesting. Your content should also funnel readers to the next stage in the pipeline, whether that’s a free consultation with a sales representative or a signup page.
Social media marketing
Social media marketing means driving traffic and brand awareness by engaging people in discussion online. You can use social media marketing to highlight your brand, products, services, culture, and more. With billions of people spending their time engaging on social media platforms, focusing on social media marketing can be worthwhile.
The most popular digital platforms for social media marketing are Facebook, X, and Instagram, with LinkedIn and YouTube not far behind. Ultimately, which social media platforms you use for your business depends on your goals and audience. For example, if you want to find new leads for your FinTech startup, targeting your audience on LinkedIn is a good idea since industry professionals are active on the platform. On the other hand, running social media ads on Instagram may be better for your brand if you run a B2C focused on younger consumers.
Because social media marketing involves active audience participation, it has become a popular way of getting attention. Social media marketing offers built-in engagement metrics, which are extremely useful in helping you to understand how well you’re reaching your audience. You get to decide which types of interactions mean the most to you, whether that means the number of shares, comments, or total clicks to your website.
Direct purchase may not even be a goal of your social media marketing strategy. Many brands use social media marketing to start dialogues with audiences rather than encourage them to spend money right away. This is especially common in brands that target older audiences or offer products and services not appropriate for impulse buys. It all depends on your company’s social media marketing goals.
To create an effective social media marketing strategy, it’s crucial to follow best practices. Here are a few of the most important social media marketing best practices:
- Craft high-quality and engaging content
- Reply to comments and questions in a professional manner
- Create a social media posting schedule
- Post at the right time
- Hire social media managers to support your marketing efforts
- Know your audience and which social media channels they’re most active on
To learn more about how Mailchimp can help with your social media strategy, check out the comparison of our free social media management tools versus others.
Pay-per-click marketing
Pay-per-click, or PPC, is a form of digital marketing in which you pay a fee every time someone clicks on your digital ads. So, instead of paying a set amount to constantly run targeted ads on online marketing channels, you only pay for the ads individuals interact with. How and when people see your ad is a bit more complicated.
One of the most common types of PPC is search engine advertising, and because Google is the most popular search engine, many businesses use Google Ads for this purpose. When a spot is available on a search engine results page, also known as a SERP, the engine fills the spot with what is essentially an instant auction. An algorithm prioritizes each available ad based on a number of factors, including:
- Ad quality
- Keyword relevance
- Landing page quality
- Bid amount
PPC ads are then placed at the top of search engine result pages based on the factors above whenever a person searches for a specific query.
Each PPC campaign has 1 or more target actions that viewers are meant to complete after clicking an ad. These actions are known as conversions, and they can be transactional or non-transactional. Making a purchase is a conversion, but so is a newsletter signup or a call made to your home office.
Whatever you choose as your target conversions, you can track them via your chosen digital marketing channels to see how your campaign is doing.
Affiliate marketing
Affiliate marketing is a digital marketing tactic that lets someone make money by promoting another person’s business. You could be either the promoter or the business who works with the promoter, but the process is the same in either case.
It works using a revenue sharing model. If you’re the affiliate, you get a commission every time someone purchases the item that you promote. If you’re the merchant, you pay the affiliate for every sale they help you make.
Some affiliate marketers choose to review the products of just 1 company, perhaps on a blog or other third-party site. Others have relationships with multiple merchants.
Whether you want to be an affiliate or find one, the first step is to make a connection with the other party. You can use digital channels designed to connect affiliates with retailers, or you can start or join a single-retailer program.
If you’re a retailer and you choose to work directly with affiliates, there are many things you can do to make your program appealing to potential promoters. You’ll need to provide those affiliates with the tools that they need to succeed. That includes incentives for great results as well as marketing tools and pre-made materials.
Marketing automation
Marketing automation uses software to power digital marketing campaigns, improving the efficiency and relevance of advertising. As a result, you can focus on creating the strategy behind your digital marketing efforts instead of cumbersome and time-consuming processes.
While marketing automation may seem like a luxury tool your business can do without, it can significantly improve the engagement between you and your audience.
According to statistics:
- 90% of US consumers find personalization either “very” or “somewhat” appealing
- 81% of consumers would like the brands they engage with to understand them better
Marketing automation lets companies keep up with the expectation of personalization. It allows brands to:
- Collect and analyze consumer information
- Design targeted marketing campaigns
- Send and post digital marketing messages at the right times to the right audiences
Many marketing automation tools use prospect engagement (or lack thereof) with a particular message to determine when and how to reach out next. This level of real-time customization means that you can effectively create an individualized marketing strategy for each customer without any additional time investment.
Mailchimp’s marketing automation tools ensure you can interact with your audience via behavior-based automations, transactional emails, date-based automations, and more.
Email marketing
The concept of email marketing is simple—you send a promotional message and hope that your prospect clicks on it. However, the execution is much more complex. First of all, you have to make sure that your emails are wanted. This means having an email marketing provider that offers the following is crucial:
- Individualizes the content, both in the body and in the subject line
- An email signature that offers a clear unsubscribe option
- Both, transactional and promotional emails
You want your prospects to see your campaign as a valued service, not just as a promotional tool.
Email marketing is a proven, effective technique all on its own, but it can be even better if you incorporate other digital marketing techniques such as marketing automation, which lets you segment and schedule your emails so that they meet your customer’s needs more effectively.
If you’re considering email marketing, here are a few tips that can help you craft great email marketing campaigns:
- Segment your audience to send relevant campaigns to the right people
- Ensure emails look good on mobile devices
- Create a campaign schedule
- Run A/B tests
Mobile marketing
Mobile marketing is a digital marketing strategy that allows you to engage with your target audience on their mobile devices, such as smartphones and tablets. This can be via SMS and MMS messages, social media notifications, mobile app alerts, and more.
It’s crucial to ensure that all content is optimized for mobile devices. According to the Pew Research Center, Nine-in-ten Americans own a smartphone, so your marketing efforts can go a long way when you create content for computer and mobile screens
Cost efficiency
Digital marketing not only reaches a broader audience than traditional marketing but also carries a lower cost. Overhead costs for newspaper ads, television spots, and other traditional marketing opportunities can be high. They also give you less control over whether your target audiences will see those messages in the first place.With digital marketing, you can create just one content piece that draws visitors to your blog as long as it’s active. You can create an email marketing campaign that delivers messages to targeted customer lists on a schedule, and it’s easy to change that schedule or the content if you need to do so.When you add it all up, digital marketing gives you much more flexibility and customer contact for your ad spend.
Quantifiable results
To know whether your marketing strategy works, you have to find out how many customers it attracts and how much revenue it ultimately drives. But how do you do that with a non-digital marketing strategy?
There’s always the traditional option of asking each customer, “How did you find us?”
Unfortunately, that doesn’t work in all industries. Many companies don’t get to have one-on-one conversations with their customers, and surveys don’t always get complete results.
With digital marketing, results monitoring is simple. Digital marketing software and platforms automatically track the number of desired conversions that you get, whether that means email open rates, visits to your home page, or direct purchases.
How to create a digital marketing strategy
For many small businesses and beginner digital marketers, getting started with digital marketing can be difficult. However, you can create an effective digital marketing strategy to increase brand awareness, engagement, and sales by using the following steps as your starting point.
Identify your audience
Before starting any marketing campaign, it’s best to identify your target audience. Your target audience is the group of people you want your campaign to reach based on similar attributes, such as age, gender, demographic, or purchasing behavior. Having a good understanding of your target audience can help you determine which digital marketing channels to use and the information to include in your campaigns.
Create a budget
A budget ensures you’re spending your money effectively towards your goals instead of overspending on digital marketing channels that may not provide the desired results. Consider your SMART goals and the digital channel you’re planning to use to create a budget.