4 reasons why digital marketing is essential for startups

Digital marketing has created new brand promotion opportunities for startups. Even though digital marketing requires investments in the right tools and professionals, it is more affordable than its traditional counterpart.

Above all, online marketing is highly targeted and data-driven.

Why digital marketing is critical for startups

Let’s learn why your startup needs digital marketing to thrive in today’s world.

1. Targeted marketing campaigns

When you invest in a magazine ad, that is a form of audience targeting. You know that your target customers are reading the magazine, so you want to grab their attention. Depending on a publisher’s guidelines, you can control the placement, size, and content of your ad. For example, if you sell dresses for women, you will want to publish an ad in a fashion magazine. 

While newspaper and digital marketing ads can be effective, they are often too broad. That is where digital marketing helps. It lets you narrow down your campaigns and focus on the right customer groups. For example, search engine optimization (SEO) allows you to optimize your website for the keywords your target customers use. That way, you will meet their search intent, boost your visibility in the search engine result pages (SERPs), and drive qualified website traffic.

Another example of audience targeting is pay-per-click (PPC) digital advertising. Based on your audiences’ demographic and psychographic data, you can create highly targeted ads and make sure they appear in front of the right people. That way, you will reduce your PPC costs and yet increase ad traffic and conversion rates.

2. More advanced data analytics

How do you measure the performance of your TV commercial? You can analyze audience engagement and determine the best times to air the ad. You can also know how many people saw your ad. However, you do not know how many of those people watched the ad, whether they liked it, whether they took action, etc. In other words, it is hard to measure whether your traditional ads convert. 

Digital marketing is easier to track. With digital marketing analytics tools, you can learn whether users saw your ad, liked it, interacted with it, shared it with friends, and took the desired action. You can A/B test almost any aspect of your digital marketing campaigns to analyze their effectiveness.

Most importantly, you can learn about your startup’s audiences. You will understand who is interested in your ads, what type of digital content they like, what inspires them to take action, and how they convert. That way, you can determine what works or does not work for your audiences. Data-driven marketing saves you money while boosting conversions.

3. Aligning with how people purchase today

Today’s customers are tech-savvy. They use the internet to learn about brands and products before making shopping decisions. Most customers read online reviews, compare brands, and research pricing before purchasing a product. Therefore, irrespective of your industry, your startup’s sales process starts online. They use search engines to learn about your brand, ask questions on social networks, register on your newsletter list, etc. 

That is where digital marketing shines. With SEO, PPC, social media marketing, and email marketing, you can meet your customers at multiple touchpoints and build a consistent, omnichannel brand presence. Most importantly, word-of-mouth marketing, such as user-generated content, social media reviews, or influencer recommendations, gain customer trust and shorten the sales cycle.

4. Offering hyper-personalization

Today, one-size-fits-all experiences do not cut it anymore. To help your startup stand out and turn it into a memorable business, you need to understand your customers and provide highly individualized user experiences. 

One such example is email marketing. Many brands use segmentation to improve user engagement and boost sales. They break down their newsletter lists into smaller segments based on customers’ location, age, gender, income, education, hobbies, interests, and so forth. That way, they send highly personalized emails that meet each customer’s individual needs.

Another example of personalization is artificial intelligence (AI) chatbots. They communicate with your potential customers naturally. Based on customer interests, they recommend the right products and encourage them to finalize the purchase. Many fashion and makeup brands also use virtual reality platforms to deliver personalized shopping experiences. Users can virtually try on items from their smartphones before making a shopping decision. That is particularly important to new online retail businesses that want to build trust with their target audiences.

Conclusion on why digital marketing is essential for startups

In the era when the internet has become entwined with every aspect of our lives, digital marketing has gained momentum. It allows startups to improve their reach and target the right audience groups. They can build stronger relationships with their target customers, increase engagement, and drive conversions faster.

This guest blog post was written by Eve Anderson. She is a marketing specialist turned full-time blogger. She is interested in sports and exciting travel destinations. You can follow her on Twitter.