Reports indicate that
online spending is set to continue over the next few years. According to Statista, global retail e-commerce revenues are
predicted to grow to 4.88 trillion
US dollars in 2021, which is almost double the figures from 2017 (2.3 trillion
US dollars).
Source
In other
words,
online marketing is a juggernaut that is showing no signs of slowing over the next half decade.
Growth of e-commerce
One study
published by
International Data Corporation in 2019
predicted worldwide spending on ‘The
Internet of Things’ (connected devices) would reach $745 billion in 2019, which makes for a huge number of additional opportunities to reach prospects beyond the original traditional
desktop device.
This indicates, the
growth of
mobile shopping together with the dawn of
digital wearables will enhance
communication and
online interaction in ways that have not been possible before.
Executive research firm, Transearch has
published a report showing a trend with leading firms ramping up their
digital marketing department. Not only are corporations increasing spend on
online marketing, they are also recruiting on-site specialists.
A report assessing
Digital Marketing Spending published by Gartner
Survey found that
companies are
planning to increase spend on
SEO and
social media by an
average of 17%.
So why are big corporations moving away from traditional advertising methods to put more focus into
online marketing?
Filling the gaps in online marketing
Technology is driving marketing innovation. The seemingly endless number of opportunities for brands and institutions to communicate
messages is becoming richer and more entertaining.
And all these advancements in
technology have the potential to benefit
people in their everyday. We already have connected cars,
thermostats and lightbulbs that provide critical information…
…how can your brand tap into new markets that are being created by new
technologies?
And let’s not forget
purpose-built platforms,
apps and various communication channels. With all these
tools at your disposal, all you need is
creative thinking to make the best use of them to improve your
online business.
Digital is more cost-effective than TV advertising
Television has been the leading platform for advertisers for well over half a century, but the outrageously high
costs often pose a barrier. The
digital arena gives marketers more scope to build reach and connect with
customers. Digital is also much more flexible than above the line advertising since it is much easier to change a title tag on a webpage or change the copy in an online ad than it is to change a television advert after it is filmed or change a printed advertisement after it has gone to press.
The flexibility and cost-effectiveness of online marketing is one of the reasons brands are planning to increase spend in online channels. For example, Mondelēz International that looks after several well-known brands including
Oreo,
plan to increase
digital spending by 50% this year, and although they still
plan to make visual ads, their priority platform will be video sharing sites rather than
TV.
Digital drives new revenue
Bringing marketing
campaigns across to the
online arena provides leverage to attract new
customers. US firm Snagajob generated $8200 from their first
digital marketing
campaign in 2014 and the second stab attracted $36,000 of bookings in a single quarter.
Interactivity
The
mindset of
consumers is changing even if their
psychology is not. Modern day
customers expect good customer service and that means before, during and after the transaction.
Digital marketing, particularly mobile, allows
companies to personalise marketing
campaigns towards specific individuals. Through the use of apps, SMS and
email you can follow your
customers purchase path and offer a helping hand on the way.
Technology therefore not only allows you to provide a better service but also to interact with your
customer. With onset of augmented
reality just around the corner,
companies will be able to provide an
interactive experience online which is virtually like
reality.
Immediacy
The
emergence of social
media allows corporations to have two way conversations with
customers visiting their site. You may have noticed a pop-up box with the
photo of the person you are speaking with behind the screen.
This allows
companies to speak directly with the
customer and help them out with any
questions on the spot and is a great way of influencing them to progress with a transaction.
Online marketing also gives you the ability to contact
customers on their
mobile devices, providing they give you
authority to do so. Letting
customers know that a new item is in stock gives your marketing
campaign an immediate impact.
You can also buy
technology that allows you to identify when
customers are in the area. By sending them a private
message with the
promise of a discount you stand a better chance of enticing them into your shop.
The number of benefits
digital marketing offers over traditional
marketing is growing, and with the rapid evolution of
technology enabling
companies to improve marketing
campaigns, the
digital arena is likely to be the number one marketing platform before the end of the decade.
Measurable
Undoubtedly, one of the major benefits of
online marketing is it’s ease of measurement.
Google Analytics and other analytics packages, if configured well (and so many are not) easily tracks conversions, add to cart goals and events, conversion funnels (and blockages), downloads, abandonment rate and more. It’s much more simple to track an
online visitor to one wandering around your
offline store or who sees a
billboard and may, or may not walk into one of your high street outlets.
