What is Digital Marketing and Its Importance

What is Digital Marketing and Why It is Important?

Every business needs digital marketing to grow its business to the next level. And the demand for digital marketing is increasing day by day in marketing. Here is the complete article on what is digital marketing and why it is important for any business.

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The world is transforming and developing in several distinctive ways. Moreover, the world is transforming digitally. Be it engineers, doctors, scientists or even shopkeepers, we all have come across this term called digital marketing, and we’re uncertain, and so did you. Digital marketing has grown and developed drastically in recent times. Names such as Neil Patel and Sorav Jain have been highlighted in the context of digital marketing.

Digital marketer is surpassing several other professions in providing job opportunities and high income, sometimes while simply sitting at home and working. If you are new to the term digital marketing and wish to learn more about it, relax, we have got you. In this comprehensive article, we will learn about What is digital marketing and Why It is Important.

Digital marketing nowadays has become a “MUST THING” for businesses and other local shop owners. Digital marketing has helped all the business owners and reputed brand owners to reach their audience in mesmerizing ways. Without digital marketing, it is extremely difficult for you to grow as a marketer or as a brand.

Whenever a business is established and initially opens its doors, attracting customers and the ability to retain them for the future is a prerequisite. After depending upon the old ways of marketing, such as outdoor advertising, print ads, and word of mouth, business owners have understood the importance of digital marketing and how crucial it is for growth and reputation. It is easy for a customer to buy a product one day and forget about the retailer later, and digital marketing, on the other hand, helps businesses to overcome this and retain them by providing customer satisfaction. Businesses understand that since they are providing an excellent product or service (by staying connected to them 24/7), customers would find their way to them eventually.

For any digital marketer or a social media specialist out there, then prioritize one goal profoundly, and that is to gain the best from every money that is spent on their marketing and advertising. Nonetheless, of how big or small your advertising strategies are, your gains and return on investment thoroughly depend upon what sort of marketing channels are you using for the same.

As we know there are now several options and channels for promoting a business, be it online or offline. But again, whether promoting online or offline solely depends upon the type of business sector you are into and which channels can be thoroughly profitable. In order to survive in this cut-throat competitive digital market, one has to be mindful of what digital marketing is and what it has to offer.

Business owners and retailers now understand the fact that their targeted audience is out there online. Before a business starts its journey on the Internet, its rivals are already there doing it more effectively. Hence it is now mandatory for every business to execute digital marketing. The newly established business owners should think about the digital marketplace and how to retrieve them, combining all of their other marketing strategies. Digital marketing should not be overlooked today, it is the best means to generate fresh leads and convert them into consumers.

So, keeping the context of the above overview, let us start this article with the basics and fundamentals of digital marketing.

Let’s go!

What is Digital Marketing?

What is Digital Marketing

The phrase digital marketing simply refers to promoting goods and services using digital channels to reach wider and intended customers in this digital market. Be it search engines, social media, websites, mobile devices, and other several digital channels are always means of promoting your brand in the digital market. Businesses previously relied on newspapers, television, and broadcast to sell their products.

However, these choices are still available and are still utilized by several retailers and owners today. The emergence of the Internet has resulted in changes in how businesses communicate with their customers today. And again, here is when digital marketing entered the picture. Websites, social media, search engines, applications and many more are an example of this type of marketing.

As the Internet started to come over and take its place with billions of customers worldwide, small and reputed businesses were obliged to revise their marketing strategies and adapt to other several digital marketing channels. A simple example here can be Facebook(now Meta). With the emergence of social media platforms like such, businesses could collect crucial information regarding their target audience and deliver what they want accordingly.

A Few Common Digital Marketing Channels 

Now that we have understood what digital marketing is, let us now understand its several different channels.

1. SMS Marketing

SMS marketing is the practice of utilizing text messages to send advertising materials or transactional messages for marketing objectives (SMS). These messages are primarily used to send time-sensitive offers, updates, and notifications to those who have agreed to receive them from your company. Text messaging is a highly effective and direct method of communicating with customers, with a very high open rate.

2. Affiliate Marketing

Affiliate marketing is the technique of earning money online when a customer buys a product after hearing about it from you as an affiliate marketing. This is an internet marketing strategy that allows you as an affiliate to earn a commission while also assisting the product owner in increasing sales. At the same time, it allows affiliates to profit from product sales without having to create any of their own. Affiliate markers simply have to add an affiliate link into their content, and whenever someone clicks on it, they earn a commissions 

3. Video Marketing

Video marketing is a forward-thinking marketing technique that incorporates entertaining videos into your marketing initiatives. Everything from creating client rapport to marketing your products, services, or goods may benefit from video marketing. Video marketing may also be used to show how-tos, promote customer testimonials, live-stream events, and distribute viral (entertaining) material.

4. Email Marketing 

Email marketing is a sort of direct marketing that involves sending tailored, bulk emails to leads in order to educate and persuade them to do a certain action, such as purchasing something. Email marketing has been around for a long time. It regularly outperforms all other marketing channels when it comes to interacting with your leads, nurturing them, and converting them into customers.

5. Social Media Marketing

The use of social media platforms to engage with audiences in order to grow a company’s brand, improve sales, and drive website traffic is known as social media marketing. This includes sponsored, owned, and earned media initiatives such as creating compelling content for social media accounts, listening to and communicating with followers, assessing outcomes, and executing social media ads.

6. Content Marketing

Content marketing is a strategic marketing technique that focuses on producing and delivering valuable, relevant, and consistent content in order to attract and maintain a specific audience and, eventually, generate lucrative consumer action. You are delivering really relevant and valuable material to your prospects and customers to help them solve their problems, rather than promoting your products or services. This blog that you are reading is the best example of content marketing.

7. Pay-Per-Click

Pay-per-click (PPC) is an online marketing approach in which advertisers are charged a fee each time one of their adverts is clicked. It’s essentially a means of purchasing visitors to your website rather than trying to earn them naturally. One of the most common types of PPC is search engine advertising. 

The above digital marketing channels have been widely used by several business owners, and these are known to be effective as well. With the term digital marketing, there is another phrase which is always used while planning simultaneously – digital marketing strategy. Now let us understand what a digital marketing strategy is and how to create one effectively.

Also Read: Top 13 Digital Marketing Skills to Learn & Become a Pro in Digital Marketing

What Is A Digital Marketing Strategy?

A digital marketing strategy, in simple terms, is a plan by which you as a business or a brand owner achieve your required and expected objectives by utilizing digital marketing channels like paid, earned and owned media. Article mentions, social media shares, reposts, and reviews are examples of earned media, whereas websites, mobile sites, blog sites, and social media channels are examples of owned media, on the other hand, PPC advertisements, display ads, retargeting ads, paid influencers, sponsored content promotion, and social media ads are all examples of paid media. 

A digital marketing strategy assists you in creating a plan of action in order to reach your target audience, create new audience segments and generate fresh leads. It also enables you to promote your goods and services in accordance with your business type.

Let’s understand the digital marketing mix;

  • Email Marketing

Email marketing is a more efficient alternative to traditional postal marketing. Email marketing is a low-cost and rapid way to reach out to your prospects and consumers.

  • SEO or SEM

SEM stands for Search Engine Optimization and SEO stands for Search Engine Optimization. Where your website and online assets rank in a search engine is determined by Search Engine Optimization (SEO) and Search Engine Marketing (SEM). SEM brings in traffic through adverts and internet marketing, but SEO brings in traffic naturally.

  • Social Media

Every day, almost one million new users sign up for social media. Any sort of social networks like Facebook, Twitter, LinkedIn, Instagram, and Snapchat, to name a few, that serves as an online community for sharing information is considered social media.

  • Content Marketing

This refers to all of the internet material you create. This encompasses everything you do online, from hosting videos to writing and designing blog entries and e-books. New content is being delivered across digital platforms by businesses every now and then.

  • Website Development and Design

Your company’s website serves as your online home base. It is deserving of as much attention as possible and requires a one-of-a-kind site design to stand out. Your website is a direct reflection of your brand and business. When potential customers want to learn more about your organization and product, it’s one of the first places they go.

  • Online Ads

Although online advertisements can be costly, they are excellent in driving visitors to your website and other web assets. You may pick what to show and on which channels using online adverts.

  • Analytics

Analytics may be obtained from a variety of digital sources to give useful information and data. These insights can aid you in improving your present and future digital marketing initiatives.

How to Create a Digital Marketing Strategy?

Here are a few digital marketing strategies which you must know before getting into the digital marketing field.

Investigate & Identify your Objectives

Firstly, as a business, you might have goals and objectives for your venture. You might know where your business stands now, and where you want it to stand in the future. Investigate your needs and goals and note them down precisely.

Gather Information About your Target Audience

It’s all about understanding whom you are delivering to. Information and data are essential to offer just what your target audience needs at the right time. Create a buyer persona for your company, which is a profile of your typical client that contains information about their preferences, online behaviour, and shopping behaviours. 

Obtain Leads

As a business, you need leads who could every now and then purchase for you and make use of your services offered. There are methods for generating leads that are based on virality. For example, you may hold prizes to get individuals to join your mailing list.

Another excellent platform for expanding your audience is Facebook and Instagram. Based on the vast quantity of data Facebook and Instagram collects about their users, it allows you to offer appropriate advertising in the Newsfeed and Instagram DMS. 

Nurture is the Key to Success

After you have obtained the leads, try nurturing them to your fullest. Nurturing leads concentrates marketing and communication efforts upon listening to consumers’ requirements and delivering the information and answers they require to create trust, raise brand recognition, and maintain a relationship until the prospects are ready to buy.

Take Care of Repeat Customers and Retain Them

Customer retention is a result of excellent customer service and an enjoyable experience. Create a positive experience that is consistent and predictable, and you’ll have a decent chance of retaining customers.

Now that we have understood the basics and fundamentals of digital marketing, let us now dive into the crucial part of this article – Why is digital marketing important?

Importance of Digital Marketing in 2023

importances of digital marketing

1. Connectivity

Through website comments, emails, reviews, and social network postings, digital marketing allow you to engage directly with people who read your content. It is thoroughly necessary for you as a brand or a business to stay connected to your targeted audience. By staying connected with the help of digital marketing, you are assuring them that are you actively wanting to understand the new trends and changes in your customer’s behaviours. This demonstrates that you care about what your consumers have to say and think, making them feel appreciated and a part of the community you’re creating. It also enables you to collect crucial data on client reactions and preferences.

2. Expansion

Almost all of their shopping and purchasing are done online on either eCommerce sites or social media platforms for many people. You may use digital marketing to reach out to these folks and therefore enhance your company’s reach.

Customers are spending more time online as the Internet grows in popularity. Your customers are on the Internet, emphasizing the significance of digital marketing. They’re seeking your items or services on the Internet. You must develop your internet presence in order to achieve the greatest outcomes for your company. You’ll get more leads who are interested in your products or services.

Also, understand that your rivals are already here competing in this digital marketing and how you can stand apart from the crowd. Digital marketing increases your reach as a brand as you are now exposed to a digital medium which has a huge number of buyers and has a vast scope of growth and recognition. You may increase brand recognition and sales by using Google Shopping Ads and brand awareness initiatives.

3. Flexibility

Email marketing, content marketing, and social media postings are just a few examples of high-quality digital marketing. As a result, understanding how to promote oneself creatively online opens up a world of possibilities for future publicity initiatives. As a brand owner, you might learn about your audiences with the data and information you possess about them and understand where your customers are located and where can you expose yourself to them easily. Flexibly, you can create content as per the digital channels used and connect them with your message. You may also use digital marketing to test and halt efforts that aren’t doing well in real-time.

4. Affordability

It is true, that digital marketing is far more affordable compared to the other means of promoting your goods and services. Digital marketing is far less expensive than traditional marketing. Prices vary depending on what you’re doing, but ad expenditure is often less than other types of promotion. This is the most crucial importance of digital marketing for newly established businesses. You may start by developing a simple and cheap strategy in the beginning and increase your advertisement expenditure gradually as your return on investment increases.

5. Tracking

Firstly, consider digital marketing analytics as a way to assess your outcomes after a test and something you can build on with each attempt. Digital marketing allows you to track your clients’ behaviours in addition to engaging with them. This is the essential importance of digital marketing as you as a brand owner would definitely want to keep track of your performances, expenditure and return on investments. You can keep track of the advertising and sorts of material they’ve viewed before they buy something. This informs you of the most effective marketing strategies, allowing you to fine-tune and optimize your plan.

6. Choosing your Targeted audience

Another importance of digital marketing is the ability to target your audience better. Imagine being able to promote your products or services directly to those who are interested in them.

You may reach out to leads who are interested in your company directly through digital marketing. Several digital marketing tools now allow you to target a specific group, making segmenting audiences easier than ever. It offers positive reinforcement and makes buying easier and more rewarding when the material a visitor receives is based on their interests and online actions.

A Few Crucial Digital Marketing Statistic In 2023

Refer to the below digital marketing statistics that will blow your mind; 

  • In 2020, the worldwide digital advertising and marketing industry was forecast to be worth $350 billion, and by 2026, it is expected to be worth $786.2 billion.
  • The digital advertising and marketing market in the United States is presently valued at $460 billion.
  • From 2020 to 2026, the compound annual growth rate of digital marketing is expected to be 9 percent
  • Just last year, 63 percent of firms boosted their digital marketing spending.
  • Digital marketing budget expenditure increased by 14 percent across organizations between 2020 and 2021.
  • PPC generates a 200 percent return on investment for every dollar invested.
  • Facebook Ads and Google Ads are the paid ad channels with the highest stated ROI rates.
  • Organic search, according to 49 percent of firms, provides the best marketing ROI.
  • For every dollar invested in email marketing, $36 is returned.
  • Email marketing, according to small businesses, is the marketing medium that gives them the best return on investment.
  • Over 20 percent of companies claim the volume of leads generated is the most important aspect in determining the performance of their marketing platforms.
  • Digital marketing channels receive 72 percent of total marketing spending.
  • Digital marketing accounts for 55 percent of all marketing. In 2021, total digital advertising spending was $436 billion, compared to $196 billion for traditional advertising.
  • People spend 50 percent more with firms that reply to evaluations on a regular basis.
  • Before making a purchase, 93 percent of consumers examine internet reviews.
  • Consumers can stay on a website for up to 5 times longer after reading negative reviews.
  • Google has a market share of 91 percent of the global search engine market.
  • 45 percent of customers purchase items online and pick them up in-store.
  • Three-quarters of companies state that their marketing activities have a direct impact on total revenue.
  • Ads on the internet may enhance brand recognition by as much as 80 percent
  • Following exposure to display commercials, consumers are 155 percent more likely to seek for brand-specific phrases.
  • A retargeting ad increases the likelihood of a customer making a purchase by 70%.
  • PPC generates a 200 percent return on investment for every dollar invested.
  • When someone does a search after viewing a linked display ad, they have a 59 percent chance of converting.
  • After seeing a display ad, a user’s search activity increases by 155 percent
  • After seeing a display ad, 27 percent of customers perform a search for the company.
  • In 2021, the overall search ad expenditure was $144.8 million.
  • Global digital ad spending is expected to reach $441 billion in 2022 and $485 billion in 2023.
  • In 2021, digital advertising accounted for 4 percent of overall advertising spending.
  • In 2020, half of all advertising will be done online; offline advertising will cost $196 billion, while digital advertising will cost $378 billion.
  • Paid search accounts for 15 percent of the typical business’s website traffic, whereas paid social accounts for just 5 percent of total website traffic.
  • In 2022, 4 percent of digital marketers want to boost their sponsored social expenditure.
  • A PPC campaign is used by 65 percent of small and medium-sized enterprises.
  • A sponsored search approach is used by 45 percent of small firms. Furthermore, 55 percent utilize display advertisements.
  • Google Ads provides 96 percent of the company’s income.
  • Around 70% to 80% of individuals completely disregard paid internet advertisements.
  • 93 percent of companies use Facebook and 86 percent of those who do use Facebook advertising.
  • There are 55 million organizations on LinkedIn right now.
  • Instagram has more than 200 million business accounts.
  • On Snapchat, you may see over 30 million companies.
  • A mobile device is used by 91 percent of users to access social media sites. As a result, you’ll want to integrate social media into your mobile marketing plan.
  • Small firms utilize email marketing to reach their ideal consumers in 64 percent of cases.
  • Approximately one out of every five email campaigns is not compatible with mobile devices.
  • Eighty percent of marketers prefer not to use social media over email marketing.
  • You won’t want to skip out on taking advantage of this low-cost strategy to advertise your brand since 64 percent of small businesses currently use email marketing.
  • Only 33 percent of people will open an email merely because the subject line is interesting.
  • Only 47 percent of email receivers open an email based only on the subject line.
  • A mobile device is used by 91 percent of users to access social media sites. As a result, you’ll want to integrate social media into your mobile marketing plan.
  • Small firms utilize email marketing to reach their ideal consumers in 64 percent of cases.
  • Approximately one out of every five email campaigns is not compatible with mobile devices.
  • Eighty percent of marketers prefer not to use social media over email marketing.
  • You won’t want to skip out on taking advantage of this low-cost strategy to advertise your brand since 64 percent of small businesses currently use email marketing.
  • Only 33 percent of people will open an email merely because the subject line is interesting.
  • Only 47 percent of email receivers open an email based only on the subject line.
  • For content marketers, video marketing is the most common media approach.
  • When firms use video content, they gain income quicker, according to 49 percent of them.
  • 86 percent of customers want to see more video content from their favorite businesses.
  • Customers are eager to spend more with a business that is completely transparent online, according to 73 percent of customers.
  • Only this year, 76 percent of companies said they implemented marketing automation.
  • In 2021, 35 percent of businesses planned to use augmented or virtual reality in their marketing campaigns. As a result, 42 percent want to raise their investment in 2022.


In this digitally transforming world, keeping the above statistics in mind, it is important for you as a business owner to make sure you are digitally present and active for your audiences. Digital marketing has grown tremendously and is expected to grow more and more. Digital marketing indeed is the future of marketing and branding.

What do you feel about the above comprehensive article? Do let us know in the comments section below.

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Digital Scholar

Digital Scholar is a premier agency-styled digital marketing institute in India. Which offers an online digital marketing course and a free digital marketing course worldwide to elevate their digital skills and become industry experts. Digital Scholar is headed by Sorav Jain and co-founder Rishi Jain, who are pioneers in the field of digital marketing. Digital Scholar’s blogs touch upon numerous aspects of digital marketing and help you get intensive ideas of different domains of digital marketing.

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