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?
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.
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.
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.
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.
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.