Introduction
For advertisers, there are many factors increasing the value of digital marketing. First, technological advances are allowing advertising agencies to offer more targeted advertising options their clients. Second, consumers are becoming much more fragmented due to advancement of digital technologies such as the interactivity of computer programs, TiVo, Video On Demand, mobile devices, video gaming, and others ~ forcing marketers to create alternatives for reaching its audience. Finally, digital technologies allow marketers to more precisely monitor and measure the impact of their digital marketing campaigns. These and other factors have contributed to the additions of the wide array of marketing channels. Here we will identify the more highly recognized digital marketing channels and provide a high-level definition of each.
Internet Marketing / Online Advertising
Internet Marketing and Online Advertising are sometimes used synonymously. Although the two communication techniques have somewhat different meanings, for the purpose of identifying digital marketing channels we will use the two interchangeably.
Internet Marketing can be defined as the process of promoting organizations, products, or services using the Internet. The goal of Internet Marketing varies based upon the marketing objectives. For example, many companies use the Internet as a sales vehicle (eCommerce), allowing consumers to buy and sell products and services through the web. Other companies may use Internet Marketing to simply create brand recognition, build awareness or facilitate public relations initiatives.
Several Internet tools are used to support Internet Marketing campaigns. These tools include the following: Email Marketing, Web Banner Ad, Blogs, Webcasts, Podcasts, RSS Feeds, Wikis and Search Engine Optimization. These are all tools of Internet Marketing that when used along with an Integrated Campaign, can be very effective at reaching a targeted audience to ultimately sell products.
Mobile Marketing
According to Pop Solutions, an Interactive Mobile Marketing Company, Mobile Marketing is defined as Spam-free, personalized, permission-based marketing messages sent to receptive consumers via their cell phones. Additionally, Pop suggests that Mobile Marketing provides instant, interactive communications that reach consumers at times when they are most likely to respond.
There are several factors that add to the growth the Mobile Marketing. These factors include: the continued growth of the cellular phone market (expected to reach 4 billion in 2008), the strength of the 14-35 market segment, and the ability to measure response rates.
Marketers are distributing Mobile Marketing communications using Multi-Message Services (MMS), Short Message Services (SMS), and Mobile Web Marketing. Each of these techniques offers unique benefits. For example, MMS allows advertisers to send multi-media message to a mobile device. MMS can be considered as an evolution of SMS, which offers the ability to send only text messages to a mobile device. Finally, Mobile Web Marketing is a form of mobile marketing through web pages that are specifically designed to be view on cell phone.
Increasingly, cell phone users opt-in to recieving messages through their cell phones. This reduces the likelihood of these messages being considered SPAM. Because users "opt-in" response rates are often significantly higher than than traditional marketing campaigns.
Digital Outdoor Signage
In its simplest form, digital signage is a display (such as a billboard or outdoor banner) system used to present a dynamic computer-generated message to an audience. In an article written by Craig Guillot Digital Signs of the Times, Digital Signage is a “living, breathing, high-impact communications platform” that adds to consumer experience with the brand.
This digital outdoor signage is rapidly replacing the traditional static billboards of the past. Marketers are now able to create advertising messages that include animated graphics, full motion video, and audio. As the cost of this technology continues to decrease, savvy marketers are now considering investing in this marketing channel. David Little acknowledges this growth in his article entitled, Digital Signage: Interactive Digital Signs Demand New Marketing Attitudes.
In-Game Advertising & Product Placement
I have personally witnessed the growth of In-Game Advertising, which is becoming a major marketing channel advertisers use to reach consumers. We have become more intrigued by our personal computers and its ability to provide entertainment by way of streaming videos for movies and television shows, computer gaming, internet surfing, and visiting community sites like YouTube and MySpace. As these entertainment avenues detract from television viewership, innovative marketers have begun to follow us consumers to our new entertainment plateau.
Now advertisers are reaching us through our indulgence of playing video games. They are now strategically inserting brands and logos into our gaming experience. This strategic brand placement is called In-Game Advertising and can be described as a marketing technique used to promote products and services using computer and video games as the channel of distribution - and we gamers don’t seem to mind.
The insertion of brands actually increases our entertainment value as long as the insertion fits seamlessly into our experience. Based on this idea and a report presented by Parks Associates, In-Game advertising is expected to grow into a $2 billion industry by 2012. In another research report, Massive Incorporated concluded that brand familiarity increases by 64 percent when In-Game advertising is utilized.
Another feature of In-Game advertising that attracts marketers, is the growing ability to make the advertising dynamic. According to the In-Game Advertising company Double Fusion this means that advertisers can promote their products for a specific period of time, or change their messaging during their marketing campaign. Traditionally, the demographic for gamers have been primarily men between the ages of 18-34 years old. In recent years however, a growing number of women have become console owners.
With the changing demographics, the ability to make gaming advertising dynamic, and the increased brand familiarity with this media channel, marketers should begin to add this channel of marketing into the budget in the coming years.
Friday, October 26, 2007
Friday, October 5, 2007
What is Digital Marketing?
There are a multitude of definitions of Digital Marketing here in cyberspace - causing much confusion among students, professionals, and blog readers alike. While I have been unable to find information on when the popularity of Digital Marketing began among advertisers, I can acknowledge what makes Digital Marketing popular. First, let's examine the various definitions of the subject - What is Digital Marketing? If you Google this phrase, the search will produce approximately 5,000 results. This result quantity acknowledges not only the growth of the Digital Marketing concept, but also the vast array of definitions.
Many define the term as simply "Marketing Online (or Online Marketing)" This general explanation leave readers asking the question, "What does that mean?" Marketing online can be in the form of sending an email, optimizing search engine result (SEO), or displaying banner ads on a webpage to reach potential customers. Certainly, Digital Marketing is more than this. Using Online Marketing and Digital Marketing synonymously is not comprehensive of what Digital Marketing really is. Online Marketing typically involves using only the Internet to promote products and services to consumers. Using such a narrow focus to describe Digital Marketing minimizes the multitude of other marketing channels that encompass this fast-growing marketing trend.
Others definitions of Digital Marketing acknowledge the fact that because of it digital nature, digital marketing communications can be distributed at a faster rate and broader reach than traditional marketing communications. While this idea is undoubtedly true, reaching a mass audience quickly by using digital technolgy does not constitute Digital Marketing. In fact, some would argue that reaching a more targeted audience iteratively is a more clear definition of Digital Marketing - and I would agree because an iterative approach to marketing requires the establishment of a relationship.
Marketing executive are most supportive of Digital Marketing because of the ability to easily track and measure results of the marketing communication. Because of the use digital technology, the results of a digital marketing effort can be tracked by reach, views, clicks, visits, response rates, purchases made and so on. I will explore the details and importance of these types of measurement techniques in the coming weeks, but for now understand that Digital Marketing requires the ability to measure the results of a digital marketing campaign.
The Digital Marketing Institute defines the term as "the use of digital technologies to create an integrated, targeted and measurable communications which help to acquire and retain customers while building deeper relationships with them." I agree and support this definition as being most comprehensive of my intrepretation. This definition includes the terms digital, targeted, measurable and relationship all terms that are necessary to define Digital Marketing. It must be digital because of the technology. It is targeted because of the value in the technology allows it to be. It must establish relationships because marketing using digital technology generally requires input from potential consumers. It must be measurable because measurability is inherent in the use of digital technology and inherent in the use of marketing.
The one caveat to the definitiion offered by the Digtial Marketing Institute is that it uses the word integrated to define Digital Marketing. Using an Integrated approach to execute a digital marketing strategy would ultimately provide a better response rate, having an integrated approach is not inherent in the definition. A campaign can encompass a host of well placed interactive digital communication messages throughout cyberspace and other digital media and not place the promotion in magazines, television, newspapers, or radio. This campaign will still be defined as Digital Marketing.
In summary, I define Digital Marketing as the practice of promoting products and services using digital distribution channels, reaching targeted consumers, building iterative relationship with those consumers, and having the ability to produce measurable results. Digital Marketing must be targeted, it must be measurable, and it must involve building strong relationships.
My definition simply adds to the already large list already in cyberspace. I invite you to share your thoughts about this definition. Next week I will explore the various types of Digitial Channels. Until Next Time....
Many define the term as simply "Marketing Online (or Online Marketing)" This general explanation leave readers asking the question, "What does that mean?" Marketing online can be in the form of sending an email, optimizing search engine result (SEO), or displaying banner ads on a webpage to reach potential customers. Certainly, Digital Marketing is more than this. Using Online Marketing and Digital Marketing synonymously is not comprehensive of what Digital Marketing really is. Online Marketing typically involves using only the Internet to promote products and services to consumers. Using such a narrow focus to describe Digital Marketing minimizes the multitude of other marketing channels that encompass this fast-growing marketing trend.
Others definitions of Digital Marketing acknowledge the fact that because of it digital nature, digital marketing communications can be distributed at a faster rate and broader reach than traditional marketing communications. While this idea is undoubtedly true, reaching a mass audience quickly by using digital technolgy does not constitute Digital Marketing. In fact, some would argue that reaching a more targeted audience iteratively is a more clear definition of Digital Marketing - and I would agree because an iterative approach to marketing requires the establishment of a relationship.
Marketing executive are most supportive of Digital Marketing because of the ability to easily track and measure results of the marketing communication. Because of the use digital technology, the results of a digital marketing effort can be tracked by reach, views, clicks, visits, response rates, purchases made and so on. I will explore the details and importance of these types of measurement techniques in the coming weeks, but for now understand that Digital Marketing requires the ability to measure the results of a digital marketing campaign.
The Digital Marketing Institute defines the term as "the use of digital technologies to create an integrated, targeted and measurable communications which help to acquire and retain customers while building deeper relationships with them." I agree and support this definition as being most comprehensive of my intrepretation. This definition includes the terms digital, targeted, measurable and relationship all terms that are necessary to define Digital Marketing. It must be digital because of the technology. It is targeted because of the value in the technology allows it to be. It must establish relationships because marketing using digital technology generally requires input from potential consumers. It must be measurable because measurability is inherent in the use of digital technology and inherent in the use of marketing.
The one caveat to the definitiion offered by the Digtial Marketing Institute is that it uses the word integrated to define Digital Marketing. Using an Integrated approach to execute a digital marketing strategy would ultimately provide a better response rate, having an integrated approach is not inherent in the definition. A campaign can encompass a host of well placed interactive digital communication messages throughout cyberspace and other digital media and not place the promotion in magazines, television, newspapers, or radio. This campaign will still be defined as Digital Marketing.
In summary, I define Digital Marketing as the practice of promoting products and services using digital distribution channels, reaching targeted consumers, building iterative relationship with those consumers, and having the ability to produce measurable results. Digital Marketing must be targeted, it must be measurable, and it must involve building strong relationships.
My definition simply adds to the already large list already in cyberspace. I invite you to share your thoughts about this definition. Next week I will explore the various types of Digitial Channels. Until Next Time....
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