Traditional or Digital – irrespective of the method, marketing is all about segmenting the market, understanding your customers, and positioning yourself through great storytelling. While traditional marketing has a strong foothold, digital marketing is having a paramount influence on the marketing methods.
While you scroll down (most probably over your smartphone) to read this article further, give it a thought when was the last time you got influenced by a billboard advertisement and right away headed to purchase the product? You don’t even remember and it is quite possible that it never occurred. However, it is pretty obvious to click on ‘Buy Now’ or ‘Add to cart’ options while navigating the plethora of online content.
The debate continues whether Digital Marketing has outshined Traditional Marketing. In the age of Millennials, who is obsessed with technology, the overpowering merits of Digital Marketing have diminished the scope of traditional marketing.
Comparing both Traditional and Digital Marketing methods, here we will tell you how Digital Marketing can prove to be a boon for small businesses.
Traditional Vs Digital Marketing
Some of you may argue, that traditional marketing tools like print and electronic media advertisements, flyers, billboards, etc. are a proven technique and undoubtedly had high success rates. Then why go for Digital Marketing?
Let me explain –
Consumer behaviour has witnessed a paradigm shift in recent years. Apple and Blackberry are not mere fruits. Salespeople have become the last resort of the buyers. Only 19 percent of the buyer relies on salespeople for purchases, while more than 80 percent of online users use the Internet to purchase things. A scary thought to consider is that even for offline purchases made, 70 percent of the research is done online.
In this on-going debate on Traditional Vs Digital Marketing, where traditional marketing is losing its grip. It is important for you to know why to allot your advertising budget on Digital Space.
Potential for tremendous exposure:
The internet has 3.17 billion users and the count keeps increasing every second. Out of which 2.3 billion users are active in Social Media. What more do you need to understand the reach of Digital Marketing. Your business can be seen anywhere in the world, unlike the traditional media marketing which works for a limited demography.
Sharing of messages (information) on online platforms is all together the new word of mouth. People like, share, retweet, mark favorite or pin the information as per their interest.
Face it: When was the last time you saved a newspaper advertisement cutting and dropped it at your friend’s place. Not even thought of doing in your wildest dreams. But sharing a link and promoting an offer online is always a click away.
Let you measure your performance and gives better ROI:
They say, if you can’t measure it you can’t manage it. Traditional Marketing is like a blind date, you may or may not end up with something rewarding. By the time you decide it is not working you have already landed there. While, Digital Marketing gives you evidence of your success/failure in real time.
Let me introduce you to some interesting terminologies of Digital Marketing. This will not just help you measure your performance but also help you strategize your marketing moves in a better way.
A digital marketing campaign can be measured by the following metrics. We can broadly divide it into three parts.
• Traffic Generation
You can measure the overall site traffic. The page views and unique visitors.Helps you know the sources of traffic (laptops, desktop, mobile phones, tablets etc.) Click Through Rate (CTR) will help you determine how many people actually clicked on your ad.Cost Per Click (CPC) value will help you know how popular your keywords are.
The aim of your digital marketing campaign is to convert site visits into sales or create business leads. Conversion rates determine the digital marketing success.Cost Per Lead helps the business owners to measure the lead conversion ratio of a particular campaign. This is helpful to determine whether the campaign was profitable or not.The average page view, average time on site and bounce rate (some users immediately leave the page) and rate of return of visitors can also be determined.
The Return on Investment (ROI) help you identify which area in your digital marketing campaign is driving sales and revenue, and which area should be worked upon.Cost to Acquire a Customer (CAC) is determined by dividing the Total of the marketing and advertising cost for a particular period of time by the number of new paying customers generated during the period. These metrics don’t just help you measure your performance, but also allows you to improve on your downsides and establish a better marketing campaign.
Cheaper than Traditional Marketing:
Digital Marketing campaigns are cheaper than Traditional Marketing any day. An advertisement on TOI Delhi NCR or Mumbai may cost you around Rs. 3500/sq cm. Which means a full-page ad campaign would cost the advertiser around Rs. 60 lakhs. However, the cost would reduce for small cities. If you plan to publish a pan India advertisement, the discounted rates are Rs. 9000 /sq cm. Subsequently, making you pay a whopping amount of Rs. 1.5 Crore for a single full page ad.
As a small business owner, you stand nowhere close to go for such ads. It is when Digital Marketing comes as a boon. It is cost efficient. The use of social media websites is free. Though you have to pay for sponsored ads, but the cost is still cheaper compared to traditional marketing. If you are advertising on Facebook in India, then you can start your first advertising campaign for as low as Rupees 40 (per day), that is Facebook’s minimum requirement for you to initiate an advertising campaign on their platform.
Engages the customer and target the desired audience:
You got a new restaurant to be opened near the University. Spend a huge amount to book an advertisement precisely on the right hand side page of the Newspapers (It is believed the reader’s eye first goes towards the right side). What next? Here starts your wait.
A competitor created a website for his/her restaurant (which is NO big deal). Created Facebook/Twitter/Instagram pages. Promoted it on University Page. Floated captivating images of the food they would offer at the best prices. Generated Likes. Students started following the page. The prospective customers actually visit the restaurant and posted pics on the restaurant’s page. Some even chose to write reviews.
The visitor’s book of your restaurant on the other hand doesn’t seem to fill even a few pages. Who knows, it was the grandfather of the family who actually went through your newspaper advertisement.
Compel the consumers to take action immediately:
Watching an advertisement on Television, listening to it on Radio, viewing the ad in newspapers or billboard will never make your consumers to lift themselves and take an immediate action.
Who would run to the shopping complex to avail offers while he/she is reading the offers on Newspaper while sipping the morning tea. The piece of information may subconsciously remain with the consumer, but may or may not convert into a store visit.
Whereas, the Digital Platforms create an urgency and provides the consumers with the tool to act immediately. Resulting in higher conversions.
Digital Marketing has leveled the field for small business in the era of cut throat competition. It helps you reach a wider audience, build meaningful connections, nurture your brand and in turn increase revenue.
Comment below to share your views on the challenges faced by you in Digital Marketing. We are here to HELP.