The marketing world has seen increasing investment in digital over the past decade. 2020 made that especially necessary as it became increasingly difficult to reach consumers outside of their homes and marketers learned how important it was to be able to make adjustments on a whim. When looking at eMarketer’s US digital ad spend forecast, the world of digital marketing will only continue to grow for the next five years.
So why is that? While traditional marketing is certainly going nowhere, here are four key reasons why many brands are choosing to invest more in digital.
You move faster.
The days of having “set it and forget it” campaigns are long gone. Brands need to continually optimize their campaigns to improve performance, as there is a growing demand to show a concrete return on investment. As a result, being able to be nimble is critical, whether that means reallocating funds from underperforming channels to better performing channels, running creative tests to understand which messages are making the most impact, or making adjustments to audience targeting. depending on the changes. trends and consumer demands. Digital marketing allows that, while more traditional channels that require upfront engagements and more static placements can’t. That does not mean that traditional marketing does not offer value, but it does cause limitations in terms of possible improvements.
You are more efficient.
Since budget decisions are often made at the senior leadership level, you need to show the impact of your spending. . All marketing must achieve a true business objective, but it must also be highly optimized based on cost metrics rather than rate metrics. By optimizing cost metrics in digital, marketers can get more for less. Most traditional marketing is priced in a fixed-cost fee structure, while programmatic digital campaigns have dynamic cost metrics that can be lowered through machine learning, bid adjustments, data management and inventory, and more. In general, there are many levers that can be used to bring brands closer to their ROI goals.
Get more data-driven insights.
For some, this benefit can be both a blessing and a curse. The abundance of data available from digital marketing campaigns that can often be initially daunting to weed out what is important from what is not. However, once the “true signals” of what success looks like are determined, there is a lot of power that can be derived from that acquired data. Brands will be able to understand more clearly who their strongest current and potential customers are, which channels bring them closer to their goals, how they can adjust planning to take advantage of that acquired data, and more. In general, this data has the ability to inform broader business decisions beyond marketing objectives when applied strategically.
You evaluate success.
With digital marketing, teams can build a robust measurement framework and KPIs against which to measure success in terms of consumer action and response. Digital can take analytics beyond expected impressions based on traffic patterns and subscribers, and narrow it down to what’s really important to your brand. That means it should be easier to answer the question of “is it working?” For those who are not involved in the daily marketing function.
If you are interested in exploring the world of digital marketing further, please contact our team at Coegi.
By: Elise Stieferman
Elise Stieferman is Director of Strategy and Client Development at Coegi, an all-in-one premium marketing partner for media professionals looking for a simplified way to take advantage of programmatic and social solutions. Coegi enables marketers to become digital heroes among coworkers and clients by empowering them with the best strategies, technologies, and expertise through streamlined partnerships. Elise has an MBA and a master’s degree in communication and journalism from the University of Missouri.