A Study on Digital Marketing and It’s Impacts

Kishan Prajapati

Department of Computer Science

Institute of Nirma Technology

Ahmedabad 382 481, India

18bce181@nirmauni.ac.in

Abstract—The world is shifting from analog to digital and percentage [8]. And there is a direct connection between
marketing is no exception. As technology development is digital marketing and the internet. Countries like India and
increasing, the use of digital marketing, social media China have the highest number of internet users so they have
marketing, search engine marketing is also increasing. Internet a great opportunity.
users are increasing rapidly and digital marketing has profited
the most because it mainly depends on the internet. The main objectives of this review paper are the
Consumer’s buying behavior is changing and they are more following:
inclined towards digital marketing rather than traditional
marketing. The purpose of this review paper is to study the  Understand the various channels of digital
impact of digital marketing and how important it is for both marketing
consumers and marketers. This paper begins with an  Comparison of traditional marketing and digital
introduction of digital marketing and then it highlights the
marketing
mediums of digital marketing, the difference between
traditional and digital marketing, and the pros, cons, and  Importance of digital marketing
importance of digital marketing in today’s era.
 Advantages and disadvantages of digital
Keywords—digital marketing, internet, online advertising, marketing
internet marketing
 Challenges digital marketer face
I. INTRODUCTION
II. VARIOUS CHANNELS OF DIGITAL MARKETING
Marketing refers to the steps that the company takes to
promote the buying of any products or services. The Digital marketing consists of various channels which are
company seeks customers or consumers for their products or medium used by the marketer to promote their products or
services via the help of marketing. Digital Marketing refers services. As an advertiser one, the main aim is to select the
to the marketing of any product or service in digital form. channel which is best for communication and give
For example, marketing using smartphones, computers, maximum return on investment (ROI) [15]. The list of
laptops, tablets, or any other digital devices. Digital important digital marketing channels are given below:
marketing is a form of direct marketing that links consumers
with sellers electronically using interactive technologies like A. Social Media
emails, websites, online forums and newsgroups, interactive
In the current era, social media marketing is one of the
television, mobile communications etcetera [12].
most important media in digital marketing. It is the fastest-
‘Digital marketing’ term was first coined in the 1990s. growing digital channel. Social media marketing is the
Digital marketing is also known as ‘online marketing’, process of gaining traffic or sites through social media sites.
‘internet marketing’, or ‘web marketing’. It is known as
According to Neil Patel, "Social media marketing is the
‘internet marketing’ because with the rise of the internet
there is also high growth of digital marketing. The major process of creating content that you have tailored to the
advantage of digital marketing is that marketers can sell their context of each social media platform to drive user
products or services 24 hours and 365 days, lower cost, engagement and sharing" [7]. The number of internet users
efficiency gain, to motivate the customer for more purchase by population has increased from 16.6 to 62 percent in 15
and improve customer services [13]. It helps many-to-many years and social media marketing has benefited the most in
communications because of its excessive degree of that [8].
connectivity and is generally completed to sell services or
products in a timely, relevant, non-public, and cost-powerful
manner.
In 2005, there were around 1.1 billion internet users
which consist of 16.6 percent of the population at that time
[8]. In 2020, the number of internet users is around 4.8
billion and the percentage population has increased to 62
 C. Affiliate Marketing
In affiliate marketing, the company rewards subsidiaries
for every customer or visitor they bring to the company's
website by their marketing efforts or strategy on behalf of
the company. According to Pat Flynn's Smart Passive
Income, "Affiliate marketing is the process of earning a
commission by promoting other people's (or company's)
products. You find a product you like, promote it to others,
and earn a piece of the profit for each sale that you make"
[8]. There are 4 different parties involved in affiliate
marketing:

1) The Merchant: Sometimes it can be the seller, the

brand, or retailer. This party produced a product to sell. It
can be an individual or startup or big fortune company [5].
2) The Affiliate: This party is also known as a
publisher. . It also can be an individual or startup or big
fortune company. They take a commission from the
merchant for every service or product they sell. The affiliate
brings customers to the merchant.
3) The Customer: The customer or consumer is an
Fig. 1. Distribution of various social media platform [6] important part of the whole system. They go to affiliates and
affiliate redirect them to merchants by taking his
Fig. 1 displays over 200 social media platforms. Below
commission. Without a customer, the affiliate cannot earn a
is the list of important social media platforms.
commission.
1) Facebook: It is the number one social media 4) The Network: Network works as an intermediate
platform. A company can promote their product and services between affiliate and merchant. Affiliates require a network
on Facebook. to promote products or services [5].
2) LinkedIn: Professional write their profiles on D. Search Engine Marketing
LinkedIn and can share with others. The company also build A search engine is a web based tool that helps the user to
their profile and LinkedIn connect these two dots companies
find the information they are looking for. Examples of a
and professionals.
search engine are Google, Yahoo, Bing, Baidu, etc. Search
3) Google+: It is Google’s social network, user can
engine marketing refers to any activity that increases a user's
easily connect based on their common interest and
websites rank in any search engine [3]. There is two types of
friendship.
4) Twitter: Its strategy is to increase brand awareness Search engine marketing search engine optimization (SEO)
and sales, attract new followers, and lead and boost and paid search.
conversions. According to Neil Patel, Search engine optimization is
5) Pinterest: It is a social media platform in which the art of ranking high on a search engine in the unpaid
visual content is available and the user can share or store section [6]. It is also known as organic marketing or organic
with others.
listing. In general, the higher the rank of the webpage in the
B. Email Marketing search engine more visitors will visit that webpage. When it
When a message is sent through email about any product comes to SEO it consists of a search engine and searcher.
or service to any potential customer it is known as email And 67 percent of all searches happen on Google [6]. So
marketing. It is a simple digital marketing channel to Google is the most important search engine in the world.
understand. Email marketing is used to sell a product using
In paid search one need to pay to get a higher rank in
discounts and event ads, increase brand awareness, and
search engine. In paid search, one will have the same kind of
direct people to their business websites [1]. In an email
keywords as on their organic ad campaign. The majority of a
marketing campaign, the types of email can be sent are blog
paid search engine is run on a commercial search engine
subscription newsletter, the welcome email series, the
such as Google, Yahoo, Bing, etc. [3]. Paid search work on
seasonal campaign, the post-purchase drip, the cart abandon
the pay-per-click model, in which marketers will only pay
campaign, follow up email when website visitor download
when someone clicks on their ad. The search engine
something, holiday promotional to loyal members, the re-
algorithm will determine the rank of the advertiser's ad
engagement campaign, etc. [4]. The biggest advantage of
based on their bid and quality score [3]. Many advertisers
email marketing is that it is very cheap compare to other
prefer paid search rather than SEO in short term due to its
marketing mediums. It is generally used to build loyalty
ability to give a faster result.
among existing customers rather than gaining new
customers. The company can get a customer's attention by
creating graphic and visual ads, link product images to the
website [1].
E. Online Display Advertising IV. IMPORTANCE OF DIGITAL MARKETING
In traditional marketing, there is a poster or billboard of Based on the above discussion summary of the
any company on both sides of the road or an ad in a importance of digital marketing that every marketer should
magazine/newspaper to promote their product or service. follow is written below:
Online display advertising is a digital version of that. Today,
a marketer can use online display advertising to achieve the  Internet marketing is endlessly more moderate than
same thing. There are different types of display advertising any offline marketing techniques. It can reach a
wider audience easily [11].
such as video ads, banner ads, interactive ads, and rich
media, etc. [3]. Display advertising is great for catching the  In digital marketing results can be followed and
eye due to graphic ads. monitored easily with the help of various tracking
software. Rather than leading costly client research,
An online display advertising marketer can target an organizations can rapidly see client reaction rates and
audience based on website content, geography, gender, age, measure the achievement of their promoting effort
device type, etc. So the marketer can show a suitable ad to continuously, empowering them to design all the
more adequately for the following one [11].
the relevant customer which helps in decreasing the budget
and increasing sales [1].  Collecting feedback from customers is easy to
compare to traditional marketing mediums such as
III. COMPARISON BETWEEN TRADITIONAL AND DIGITAL TV, radio, or billboard. They can easily give
MARKETING feedback on any product using a website in online
Traditional marketing is the most recognizable form of marketing which helps a businessman to redesign
marketing. Most people are used to traditional marketing due themselves in their specific domain.
to its longevity. Some examples of traditional marketing  It helps in advancing a business through the online
include tangible items like ads in a newspaper or magazine. It medium like web or portable subsequently arriving at
also includes a billboard, brochure, commercial on TV or a large number of clients in a second. Numerous
radio, poster, etc. It is a non-digital way of marketing. little and huge organizations are following the
Whereas digital marketing uses various digital channels to methodologies of web-based showcasing to
reach customers. Some comparisons are given below: underwrite themselves globally [15].
TABLE I. TRADITIONAL AND DIGITAL MARKETING COMPARISON  Digit advertisers screen things like what is being
seen, how frequently and for how long, what
Traditional Marketing Digital Marketing
substance works and doesn't work, and so forth.
Example of digital marketing
Example of traditional marketing
includes a website, social media While the internet is maybe, the channel most firmly
includes a poster, brochure, connected with digital marketing, others incorporate
platforms, affiliate marketing,
magazine, newspaper, broadcast,
telephone
email marketing, search engine remote content informing, portable applications,
optimization advanced TV, and radio channels.
With a traditional marketing With a digital marketing approach
approach, only limited or local customer around the world can be  Digital marketing is moderate, targetable, and
customer can be targeted [10] targeted [10] quantifiable and thus organizations do it and
Advertising campaign takes a Advertising campaign take a short advertisers love it.
long period to plan period to plan
It is costly and time-consuming Relatively cheap and faster V. ADVANTAGES OF DIGITAL MARKETING
A physical relationship is shaped No physical relationship is formed Technology is changing rapidly and it also has affected
while conveying merchandise due to the digital nature of digital
[1] marketing [1]
consumer’s buying behavior. Below is given some
One campaign stays for a long A campaign can be changed very advantages digital marketing brings to the consumer:
time and change is expensive easily
No physical stuff is required
 In the year 2020 consumers can access the internet
For the promotion of product any time from any place in the world. And due to the
because digital marketing is done
poster, paper, billboard many digital nature of digital marketing consumers can stay
on website, social media platforms,
various types of material is used
or through online videos updated about any product or service 24/7 times [10].
Digital marketing is cheaper
Due to the physical nature of
compare to traditional marketing  Due to the internet consumer can do various activities
traditional marketing, its cost is
high
because it is done on websites and like going to the company's website, reading the
social media information, buying products, etc. This has increased
For market analysis traditional
marketing depends on surveys or
Facts and data available on various consumer's engagement and improved their
experimentation, it is complex to
analytic tools make it very experience.
convenient to analyze the data and
analyze the result and does not
provide accurate data [1]
to interpret it [1]  In traditional marketing, there is a little chance that
24/7 marketing all around the globe consumers can be misinformed by salespeople, but in
24/7 marketing is not possible
is possible digital marketing, consumers get clear and accurate
Only one-way communication Two-way communication can information about any product or service. And the
can happen [10] happen [10] internet gives exhaustive item data that clients can
No capacity to go viral Capacity to go viral depend on and settle on a buy choice.
Customer can feedback only Customer can give feedback any
during the working time [11] time [11]  Many different companies promote their product
through digital marketing, so it becomes convenient
to compare products of the different companies for
 the consumer. They don't need to visit various retail  Consumers use different digital devices and various
stores to compare products [1]. digital channels and those devices have various digital
channels that lead to the proliferation of digital
 Internet is available all day so there is no restriction
channels. And Marketers face difficulty in choosing
on time and customers can buy the product any time medium and audience [11].
[14].
 Digital marketing is extremely cheap compare to
 Due to the digital medium viewer can share
traditional marketing and it covers every small
information and characteristics about products or business which leads to intense competition [15].
services with others [1].
 Consumers leave behind a gigantic amount of data in
 The organization shows the costs of items through
digital channels every time they visit the channel. It's
digital channels and this makes costs extremely amazingly hard to understand such data, just as locate
understood and straightforward for the consumer. The the correct data inside detonating information
company also changes its prices on any holiday or volumes that can assist you to make the right choices.
festival to give a discount and is very transparent to
the consumer. VIII. CONCLUSION
 In traditional marketing first consumers watch It can't be rejected that the world is quickly moving from
advertisements through posters, TV, or any traditional simple to the digital world. Individuals are investing more in
way and visit a retail store to buy them. But in digital online content and companies that find it hard to digest this
marketing when consumers see advertisements they fact in their advertising strategy need to adjust quickly. The
can buy the product instantly through digital media more time individuals spend on the internet every year, the
[14]. more digital platform they use play an ever-developing
function in their lives. The main aim of digital India is to
VI. DISADVANTAGES OF DIGITAL MARKETING promote digital medium. Because people can use digital
In today’s era digital marketing has many advantages platform any time anywhere from the world companies needs
though it has a few disadvantages that are discussed below: to change their marketing strategy from traditional to digital.
On the off chance that the companies don't utilize the digital
 A competitor can easily copy the digital marketing platform to advertise their product and services then they
campaign of others. Brand names or logos can be cannot compete with competitions and will eventually shut
utilized to swindle customers [14]. down.
 If the internet connection is slow or there is some When customers want to buy any product online, they
problem with websites, then websites may take too can easily get product information and can compare with
much time to open and the customer will not wait other products without visiting any retail store or shopping
much and leave. mall. It shows that consumers are more inclined towards
online buying rather than visiting a retail store. As
 In traditional marketing, customers can physically consumer's buying behavior is changing companies also need
touch the products to verify but it is not possible in e- to change their advertising strategy and embrace digital
commerce. platforms for marketing.
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