What are the benefits of digital marketing for small and large businesses?

As with the growth of the internet, digital marketing and the demand for digital marketing is growing with no signs of slowing down. More and more companies every day take their business online in the hopes of growing their business and creating awareness around their brand. The effective use of ads online can be one of the most cost-effective methods yielding some of the best results. Another good part about using online advertising is you can measure the success of your ads with various metrics provided by companies such as Facebook or Google. This is helpful to identify areas you need to improve and areas you are doing well in.

What is digital marketing?

The definition of digital marketing is the use of digital channels to promote a service or product. The aim of this is to reach customers online. The growth of digital marketing has soared along with the growth of the internet. In the modern era, a lot of businesses use digital marketing extensively, and they have had great success doing so. In order to connect with both current and potential customers, businesses advertise their services using digital marketing techniques like search engines, social media, and blogs.

Is digital marketing beneficial for small Businesses?

In simple terms, Yes. Small businesses can significantly improve their reach online. Whereas before they could only sell to people who were in their ‘circle’ of customers and people who visited the shop (these people would typically be local). Now with the power of the internet, they can get recognition from all over the country. Not only will this increase the sales of the business but it will bring awareness to the brand through word of mouth. Selling online also creates the ability to make two-way conversations, building trust with the customer and encouraging brand loyalty. Another encouraging feature of online advertising is the fact that the adverts are measurable. You can view metrics such as clickthrough rates (people who click on your website or link included in your advert). It is key to track your online ads as this is where you can find improvements and get the most out of your ads.

Facts about small businesses online:

• 1 in 10 small businesses don’t invest in any kind of marketing.
• 41% of local businesses depend on social media to drive profit.
• 75% of local phone searches result in offline store visits within 24 hours.
• 74% of consumers rely on social media to make purchasing decisions.

Is digital marketing beneficial for large businesses?

Again Yes, large businesses usually have dedicated digital marketing teams/departments. They all understand the importance of having an online presence, Nowadays there is pretty much no large company without a website. Big businesses are always trying to set the next big trend with their new and innovative products, on which they will often base their ads. They also often use a method where they have ‘upgraded and added new features to an already successful product. This makes people who are already customers and people who are loyal to the brand want to purchase the product due to it being better than an already good product, it may also help people who are on the fence about purchasing make up their mind especially if a promotion or limited time offer is involved. This is also the most cost-effective way for large companies to promote their products but usually, the scale of campaigns is a lot larger than the campaigns of smaller companies. This is usually to do with the budget involved in the campaigns. Large businesses will often use their ads to improve their reputation such as by representing what buying their products will do for the communities and charities they are associated with. This ultimately will lead to more sales as people want to buy off of brands they can trust and with good morals.

Facts about large businesses online:

• Large companies spend on average from 11-15% of their overall budget on marketing. whereas in 2013 the average was from 7-9%.
• In 2021 the company with the largest digital spend on advertising was HBO Max with an outrageous estimated spend of $634 million (£521 million).