As India is progressing and we have started digitizing everything from our money to our business, nowadays every small-large scale business has their websites and apps. So, the products/services started getting sold online. Hence, there was a need to publicize these goods/services digitally and this is what we say Digital Marketing.
When we do marketing of a product through an online portal is Digital Marketing.
Why did we need Digital Marketing?
As we are becoming handy on mobile phones and thus all the entrepreneurs these days are approaching their customer via phones. Every product or service is just one click away. If all this is getting online then why not marketing. As now people are digitalizing so there was a need to digitalize even the marketing strategies.
How is it different from Traditional Marketing?
Marketing in earlier days was just restricted to newspaper ads, radio broadcasts, and television commercials. But, now industries publish their advertisements on YouTube video, Facebook posts, Instagram, E-mailers and etc.
Platforms for Digital Marketing:
The contribution of these platforms in the digital ad world:
1. Views/Page Views/Clicks
First thing first, what we need is traffic, so, we need to check what is the traffic, which will tell us what is the reach of the business.
Like how in an offline store, footfalls are captured, similarly traffic on online Websites/Apps. This is determined by the Views and Page Views of our website or app. The number of Page Views tells us how popular our business is in the market and what is the reach to it.
Clicks come into the picture when we are running a particular campaign on our website and thus we check how many people were actually attracted by the campaign.
2. Sessions/Bounce Rates/Exit Rates
Now as we know the customer is on our website or the desired campaign page, so now we need to know about his interest in our product. Which we get to know by the session time, this tells us for how long the customer was there on our page or website.
Bounce rate, tells us where did the customer lost his interest and bounced back from the page. Not all people who come to the website can be converted into a sale, sometimes they leave or bounce back immediately or after a few minutes. So this needs to be tracked. So that we can take care of our further campaigns.
Similarly, Exit rates tell us the same when did the customer exited from our website
3. Transactions/Quantity/Cart Dropouts
Now after we know the customer was on our website, it is essential to know whether he made any transaction or not. So for that, we need to take record of Transactions made against the Customer Ids.
Sometimes a customer may add a product in the cart and might just come out without making any transaction, this is determined by Cart Dropouts. This means a customer came and liked a brought added in his cart but didn’t make the payment
4. Conversion Rate
Now after we have known the transactions and traffic that came on our website, it’s time to know the Conversion Rate.
The conversion rate is nothing but in simple words how many customers we could manage to convert into our sale transactions.
The basic formula for it is:
Impact of Digital Marketing:
1. ROI (Return on Investment)
The Return on Investment (ROI) can be estimated by website traffic that is eventually converted into new customers. This helps us to know which area of marketing is driving sales.
2. CAC (Cost to Acquire Customer)
The Cost of Acquiring customer is defined by getting total of marketing and advertising costs for a particular time period divided by how many new paying customers were generated during the same period.