The continued rise of digital and social media has given unparalleled voice to users. While earlier users consumed whatever was offered, with an increase in the need for consumer engagement, participation, and an increased overall competition, businesses have realized that there is a need to evolve and analyze their marketing policies for better end-results. Advertisers are now looking to sculpt advertising experiences catering to individual tastes and preferences, utilizing the information collected by Big Data and Analytics in this regard.
I believe that digital advertising can be utilized very effectively and this is the reason why we have seen that in the last 20 years, the digital advertising budget has increased from being 1-2% of the total advertising budget to 15-20% in many countries today. I am confident that this number will continue to go up and one of the biggest reasons for this is that people are spending a considerable amount of their time online.
Some of the ways through which digital advertisers can optimize their efforts are included below:
• Granular analysis/ Effective Performance Management:
Digital advertisers have numerous tests and tools in hand to measure the effectiveness of their digital campaigns across Keywords, digital ads, sponsored posts etc. In such a data-rich environment, only considering the average figures may not help identify the ‘rotten apples’ or the non-performing marketing initiatives. Marketers today have various weapons in their digital arsenals, each with individual performance information. If you need the marketing budgets to be aligned closely with the business performance, then digital can be used more effectively.
In order to optimize marketing costs, it is necessary for marketers to carry out an in-depth pre and post analysis of their various marketing strategies. Rather than be influenced only by grand totals and averages, a meticulous understanding of the contribution of each and every element towards the end-result helps in formulating optimizable alternatives. This is possible in the case of digital advertising. In case of digital, the entire data is trackable, scannable, traceable and analyzable. I believe that if you can empower digital advertisement with analysis, you can use it more effectively.
• Choose an ideal marketing mix:
While in case of traditional advertising, a brand had no option but to deploy huge amounts of marketing budgets to marketing tools like TVCs that are aired across channels and spots, to be able to evaluate results. However, digital works on a ‘pay per use’ model wherein one can deploy small amounts of budgets on different digital campaigns and be able to view if the campaign is successful or not.
Developing an ideal mix of digital advertising tactics helps to offset the losses suffered from less traction in one medium with the gains in others. SEO, sponsored posts, social media pages ads, sponsored posts, and video blogs etc. are some of the major methods of digital advertising. Marketers need to evaluate the product category, target audience type, market size, audience demography, communication style etc, and then adopt a marketing structure that offers an optimum combination of these elements. Brands cannot be built by forming a uni-dimensional approach today; they require a holistic framework to grab the attention of the user.
• Better Targeting and More Effective Use of Capital:
In the past, using traditional marketing methods, the marketers could do demographic and geo- targeting to reach out to their target audiences. However, with digital, psychographic and behavioral targeting are also possible. Marketers are also able to utilize demographic and geo targeting more effectively with digital campaigns. Additionally, with tools like A/B Testing, one can compare 2 or more versions of a webpage or an app and determine which variation performs better for a given conversion goal, using statistical analysis. This helps the marketer get a fair idea of the success rate of a campaign and he/ she can deploy his capital accordingly.
• Influencer marketing:
Influencers, online celebrities, digital leaders – the digital generation has rapidly expanded the development of fan groups around individuals whose content has been liked by millions across the globe. These influencers, and their choices, observations, comments and opinions, have a massive effect on users. Thus, modern-day marketers are constantly tapping into this resource to drive positive reception on the product market. In fact, according to an international survey by Linqia, 86% of marketers used Influencer Marketing in 2017, and a whopping 92% of whom found it effective.
With the rise of follower-based social media platforms such as Instagram fast gaining ground, the desire to seek approval and be praised on social media platforms has had an impact on a majority of the population. The continued widespread adoption of influencer marketing shows that the channel is becoming an integral part of the marketing mix.
• Highlight distinguishing elements:
Businesses undertaking digital advertising need to stress upon the distinguishing features that make them easily identifiable for the viewers. For instance, while conventional TV communication had jingles, animations or specific characters which were constant elements of brand campaigns, modern-day digital marketing achieves the same through familiar logo, design, concept, brand ambassadors and mascots. These elements need to be given focused attention, particularly in today’s times of highly individualized, audience-oriented marketing efforts, as they help to develop a retention factor in the minds of the user. With offerings and services being almost identical for businesses in most industries, differentiating branding factors play an essential role in developing an intimate relationship with the consumer. Such branding efforts are required more for start-ups working in domains that have moderate to high competition.
