When a business starts operations, the main aim is to make a profit by attracting several customers. Usually, most startups go with conventional forms of advertising like outdoor advertisements or flyers. If your business offers a superior product, it’s normal for you to believe that many customers will start patronizing your services in time.
For most new entrepreneurs that think this way, disappointment eventually sets in. Virtually all industries have gotten revolutionized by technology, including the advertising sector. Gone are the days when businesses used to place ads in newspapers in sections near sports news or passed out flyers to passersby.
Even traditional stores have begun pivoting to digital marketing and have increased their budgets for social media and search engine ads. Using online methods to put your business out there targets a whole new market. It also opens your startup to a potentially increased revenue stream.
If your business is armed with digital marketing knowledge, you’d be able to gain a market foothold against your competition. Every business that needs customers in the 21st century requires a solid online presence. Below, you’ll see the benefits of utilizing digital marketing for your firm.
How Digital Marketing Helps to Boost your Company’s Revenue
Here are some ways in which digital marketing helps to boost your company’s revenue:
Increased Reach and Potential Business Expansion
When you use conventional advertising strategies, expanding your business becomes an arduous and slow task. You can only share as many flyers to people in your location, and getting your business name known to others outside of your region becomes difficult.
On the other hand, implementing digital marketing strategies will allow you to expand your firm to new locations. Traditional marketing techniques can also be slow to set up. A potentially successful digital marketing campaign can be created in minutes and can be changed at any time.
Digital Marketing Campaigns are Less Expensive
Conventional advertising channels mostly favor mostly big businesses since they require huge budgets. Millions of dollars are usually budgeted for television and print ads by huge organizations. This effectively cuts out the small and medium businesses from achieving the same level of brand awareness.
Digital marketing levels the playing field for all sizes of businesses. Whether your firm budgets anywhere in the range of a few thousand to millions of dollars, you’d be able to reach a high level of potential customers.
If your campaign is set up well, your ad could perform better than a business with an exponentially bigger budget.
Improved Revenue Level
When your digital ad campaign is set up right, you stand the chance of getting high engagement, potentially boosting your revenue level to a high margin. Typically, digital marketing avenues have a higher positive correlation to revenue than traditional marketing strategies.
A survey carried out by Google showed that firms that utilize digital marketing are 2.8 times more likely to experience higher revenue growth. Also, organizations with advertising budgets focused on digital marketing are 3.3 times more likely to add to their labor force.
Connecting with Customers Through SEO
If you’ve dabbled into the world of digital marketing before, you’d have heard the term SEO. SEO stands for Search Engine Optimization, and it allows your website to get ranked higher by search engines. The better your SEO rank, the bigger your opportunity of attracting new customers.
To understand the importance of SEO, let’s assume you type a search query that says ‘which restaurant is the best in New York.’ Google brings a bunch of results to you, and you scroll through them.
Chances are you won’t go past the first page of search results. Also, you’d be more likely to pick a restaurant shown on the first page. The probability of selecting one of the first three restaurants you see is high.
Back to you being a business owner. Imagine your business ranking high on the searches of hundreds of thousands of internet users in your area. Typically, the higher the traffic to your website, the more potential customers.
Visitors are more likely to join your email list or purchase from your website. Utilizing SEO techniques will give you an edge over your competitors in the long run. Also, search engines like Google will consider your website as an authority in your niche.
Pinpoint what Your Ad is Doing Right
One of the most significant benefits of digital marketing is that you can track how your ad or strategy is performing in real-time. This helps you to make better decisions. For instance, if you’re running an ad on your website and you spot an increased number of purchases, it means your ad is doing well.
On the other hand, if the results are not what you expected, you can change your ad campaign settings or stop it altogether. The principal thing you need to do when starting an ad campaign is to determine your key metrics.
If all you want is increased brand awareness from your campaign, you could focus on your new likes and followers as your key metrics.
Ad campaigns typically use data visualizations to display how your ad is doing. Please make use of them to determine how well your campaign is performing.
If your strategy is SEO-based, your metric should be how visitors increase on your landing page over time. You could also use marketing programs to monitor your analytics like Hootsuite, Hubspot, and Mailchimp.
Mailchimp deals with email marketing, and Hootsuite combines all your social media campaigns in one place. Hubspot is a customer relationship management program that tracks your digital marketing across SEO, emails, and websites.
Since several startups have no idea how digital marketing works, most business managers try to go with traditional marketing strategies. However, this places the business at a disadvantage relative to its competitors that utilize digital marketing.
Digital marketing comes with many benefits like improved revenue levels, increased reach and potential expansion, and reduced cost. Also, while utilizing digital marketing strategies, you’re bound to connect to a barrage of new customers through SEO and pinpoint what your ad is doing right.