Importance of digital marketing in 2021

What makes digital marketing so important? Every company will have different goals in mind, but most try to obtain more customers and get them to purchase. To perform this efficiently, you have to use all the most valuable marketing technologies and resources, and in the modern world, the internet tops that list. So does every business in need of digital marketing.

At one time, online marketing was just a different and new way to market. It created a new form of media on which to sell goods and services. But within just the past couple of years, the essence of digital marketing has become something else.

When small companies get started, their focus is often on how to get their first group of customers through the door. They may rely on traditional advertising forms, such as print ads and coupon mailers or even big signs on the road's side. They may believe that since they know they offer a good service or product, it is only a matter of time till customers find their way to them.

What are the Benefits of Digital Marketing?

1. Affordability

Digital marketing is relatively less expensive than other marketing techniques. Specific prices vary based on what you are doing, but ads spend less than other marketing modes.

2. Mobile Access

You may not know this, but 77% of American adults possess a smartphone and are more likely to use that mobile device for social networking, news, and other countless activities. Digital marketing helps you attract them while they are doing this. With remarketing ads, text marketing, and social media – you can be in front of your audience while using many apps on their mobile phones.

3. Flexibility

There are many methods and uses of high-quality digital marketing, including banner ads, content marketing, email marketing, and social media posts. By learning how to market yourself digitally and creatively, you open up a wide range of possibilities for future publicity tactics. With digital marketing, you also have the freedom of testing and stopping underperforming campaigns in real-time.

4. Expansion

Most consumers like to do almost all of their shopping online. Digital marketing allows you to appeal to these people and hence, broaden the reach of your company. Using Google Shopping Ads and brand awareness campaigns, you can promote your brand recognition and increase sales.

5. Multimedia

Customers tend to engage more with marketing tactics that combine multiple content types, including video clips, photos, and audio. It is far more convenient to incorporate all these content types into digital marketing than any other kind of publicity – and it is essential.

6. Interactivity

Digital marketing allows you to interact directly with the customers who view your content, mostly through website comments, reviews, messages, and social media posts. The interaction shows those customers that you care about what they thank and say, resulting in them feeling respected and part of the community you are building. It also lets you gather invaluable information on customers' preferences and reactions.

7. Tracking

Besides interacting with customers, digital marketing allows you to track their activities. You can track which ads and types of content they have seen shortly before they make a purchase. Tracking tells you which marketing methods are most effective, letting you improve and refine your strategies.

8. Authority

Digital marketing makes it convenient to comment on issues and controversies related to your industry or your product. Using this, you can establish yourself as an authority on these topics, get readers to trust you, come back for more information, and make a purchase in time. Digital marketing lets you come off as the industry expert and create trust in your business.

9. Influencer Engagement

Most influential figures in modern society promote themselves online or via social media. Digital marketing lets you engage with these influencers and earn their respect. If you play it right, you can get them to endorse you, leading their followers to become customers and promote brand awareness.

10. Print Enhancement

Digital marketing allows you to expand on your print marketing efforts. By writing online content that justifies claims you make in your print ads, you can go into greater depth, maximizing the effectiveness of all forms of publicity and integrating your campaigns.

What is the Importance of Digital Marketing? 

Why would you decide to postpone putting effort and time into digital marketing? Different small businesses may come up with various reasons to avoid this form of marketing, but in the end, procrastination is still procrastination.

It is not a practical approach. There is no assurance that your business will attract customers just by existing. Even if it does, you might not attract as many customers as you need to make your business profitable.

The Customers are Online

If you have not been using digital marketing, is it because you think you are simply not ready? Do you feel you just need some time to settle, and then you will figure out the marketing angle?

The issue with this method is that your consumers and potential customers are already online. Today. Right now. There is a solid chance they might already be looking for a business like yours, but they will probably choose someone else if they can't find you easily.

It is how people conduct business today. When someone shows interest in your company, whether it is in your niche in general or curiosity about your brand, the first thing they will do is look you up online and see what they can discover about you.They hope to find you there with a website and a social media presence. They might also be looking for reviews to learn what other people say about your company and whether it is an excellent place to conduct business.

If a potential customer cannot find you online, they may conclude that your business doesn't appear to be legitimate. There is an excellent chance that many of these people might decide not to take your business seriously, and they will quickly go somewhere else.

Once they have made that decision, they are probably not going to be back.

The Competition is Online

To succeed, you need to pay attention to what your competitors are doing and learn from it. Think of your competitors as someone you will beat but as people who have something to learn from.

When you look at what your competition is doing, you will get an idea of working and what is not working. Usually, whatever type of business you are in, your competitors have already established an online presence. What type of content are they using? Are they using lots of graphics and videos, or are they blogging?

What makes them unique, and how do they communicate their brand? How well do they interact with the audience? Do you think you can do better than them? You cannot if you do not take part in competing in the digital competition.

If your leads begin to search for a business similar to yours and find your competitors' websites but not yours, your business is not even running. Your prospects cannot choose you if they do not know about you. In this scenario, your competitors have just surpassed you regardless of whether they have an effective website or a clear message.

Critical Factors for Digital Marketing

Let Your Audience Come to You

Think of digital marketing to make yourself accessible to the people you are trying to reach to offer your products and services. The scope of your business can go well beyond your walls. You can attract a much larger audience than you possibly could by just answering local prospects.

By establishing an online presence, your business is open for business even when it is closed. You can build an atmosphere in which your customers can come to you anytime, day or night.

Customers and possible customers can send you emails with questions at their convenience, make purchases, and browse your inventory. Potential customers who have no way to come to you physically can still conduct business with you, whether they are limited by disability, transportation, or just living too far away.

Understanding Your Target Audience

Digital marketing allows you to interact with your potential customers. You can get to know them gradually and what they are hoping to find. On social media or a blog, you can initiate a conversation.

By engaging with people digitally, you can begin getting to know what they are looking for. Where is their problem? What is keeping them awake at night? What solutions can you provide? Instead of assuming or guessing, digital marketing provides you with tools and methods for finding out who your customers are.

In this way, you start building a relationship with your customers. You become much more than just a business. You become a trusted partner. People are more likely to purchase from companies that they have already bought from. 

1. Reaches People Where They Spend Their Time & Money

In 2019, the average Internet consumer had at least seven social media accounts. That is up from 3 just five years ago.

22% of the world's population uses Facebook. 62% of the people in the US are there. 51% of Instagram users and 76% of Facebook users are using it every day.\

importance of digital marketing

The scenario right now is that the average person spends over 2 hours a day on social media. Teenagers average about 9 hours.

Social Media is where the people are. But do people purchase things there?

People claim they are on social media to buy the products getting advertised to them. They use around 37% of their social media time engaging with branded content.


social media ROI



2. Levels the Playing Field for Small Business

You have seen it occur before. A big company like Walmart comes to town and wipes out 100's of local specialty shops. Starbucks rolls in, and mom-and-pop coffee and bagel shops shut down.

We have seen the online equivalent of this with Amazon. It is hard to compete with the name recognition or the millions they put into marketing and reputation management.

That is where the importance of digital marketing shines as a beacon of hope for small businesses. It is the same for brick & mortar, e-commerce, and personal brands alike. Digital marketing allows smaller companies to hold a top-ranking position.


Digital marketing allows you to compete with your competition by exposing you to a broader audience on a much smaller advertising budget. When managed correctly, it gives businesses laser-focused control over where and how they spend their money. When you have this kind of power and the data to support decisions, you make smarter ones.

Continue to explore the benefits of digital marketing.

3. More Targeted

When you release a magazine ad, for example, you do some targeting. You know if your audience reads that publication. You have some control over size and placement. You control the message within specific publisher guidelines.

That ad may reach one million-plus reader.

For businesses that have put a strong focus on SEO (search engine optimization), as much as 80% of traffic arrives from search results.

With search advertising, you can aim for people with a very specific:

  • Challenge
  • Goal
  • Profession
  • Education level
  • Buying behavior
  • And more

Achieve this by bidding on search queries that represent these targets. Design ads and landing pages around them to direct that traffic.

Social media advertising allows you to specify your target audience similarly using their data about their users. Tell Facebook, for instance, to only show your ad to people with a particular recent behavior, interest, location, or other identifiers.

Facebook insights

4. Can Be Hyper-Personalized

We have only just begun to discuss the importance of digital marketing in regards to targeting. With email marketing, yet another vital aspect of digital marketing, you can target almost down to the individual level.

We refer to this as "segmentation."

In many cases, you can actually get to the individual level. Marketers call this "personalization."

But when you send them highly relevant content, they stay on your list and continue to buy again and again. You can see where the importance of digital marketing lies in a repeat lifetime customer. 

email personalization benefits

5. More Advanced Analytics

What do you know about how a TV advertisement performed? You can figure out the best times for the ad to air and the best frequency with some testing. You may also create a focus group to attain more data. Generally, you only know its reach as per the agency and whether it increased sales, buzz, or achieved a similar marketing objective.

It can be tracked easily with a free analytics tool like Google Analytics. You can also get even more analytics with paid software. Utilize what you learn to cut costs where you don't see a return on investment. 

6. Easy to Scale & Adapt

As with any marketing, there is an initial investment required to get traffic moving. But the importance of digital marketing to small companies becomes very clear when you see how easy it is to adapt and scale as your business grows.

For example, with social media campaigns, search ads, and display ads, you can select a daily budget. You know precisely how much that campaign will set you back

Facebook budget

7. Best ROI

Email marketing possesses the highest ROI of any marketing technique. It can achieve a whopping 3800% return. That's 38Rupees in revenue for every 1Rupee you spend. About 20% of companies see an ROI of 70Rupess to 1Rupee spent.

Email marketing is a conversion tool. But you do need a way to design your email list with the best subscribers. Then deliver relevant content to a subscriber's inbox.

As a small business, cost-effectiveness is your greatest priority. You have to be able to use those rupees as you grow your business. Every rupee you spend matters. You need to know it is going to provide you an ROI.

That's the essence of digital marketing to small businesses.

8. Aligns with How People Today Shop

The average American spends more than 24 hours a week online. For millennials and gen Z, around 10 hours a day is the norm.

47% of millennials and Gen X do not watch traditional TV. And 22 million people had disconnected their cable by the end of last year. Magazine and newspaper sales continue to drop at a rate of about 16% a year.

But on the flip side, over 1 trillion online searches are done each year. Google holds the most significant share with 3.5 billion of these queries. Eight billion videos are seen on Facebook each day. Most of them are from businesses.

Indeed, many consumers now tend to look for services, products, or anything they want online. Most of them are also hasty and won't go beyond the search results' first five pages. So, you should not stop by just establishing an online presence. You have to pass your competitors. It is how SEO helps your business. If your website is well optimized, users will easily be discovered by users whenever they search for a keyword relevant to your brand.

How to Be Relevant Online

To have an online presence today, you need to:

  • Design a user-friendly website.
  • Make use of SEO so that you show up in search results from specific keywords.
  • Maintain at least one active social media profile where you interact with customers
  • Some paid advertising like Instagram, AdWords, or Promoted Tweets. It is impossible to get discovered online without some paid media.
  • Reputation management. Know what people are speaking about you. Get more reviews. When requested to give a review, most people write a positive review. When not asked, mostly unhappy people tend to write reviews.

How People Prefer that Businesses Reach Them

People are bored of traditional advertising. They have realized that they have a choice. 20% of 16 to 34-year-olds use an advertisement blocker online. Overwhelmingly, people leave websites that pop up annoying invites and ads when they first visit the page.

They are selecting to consume media that does not force them to sit through commercials.

It may seem cliché, but people want respect. They wish for someone to provide them with information that helps them make informed decisions. 

The importance of digital marketing is that it lets you market to people in ways that show you value them and respect them as human beings.

Integrates Marketing with Mobile Technology

People are using their cell phones as some augmented reality layered over a business. They are looking at product information and reviews while in your store. They may be ordering online or interacting with customer service en route.

A selfie they click in your store becomes an opportunity for promotion for you. They might write a review for you before they even leave your office.

Send an alert to let someone know a product they were interested in is on sale as they walk down that section. 

Invite someone to visit your store when geo-location shows that they are in the area. Send more relevant offers.

In Conclusion

A book can be written on all of the ways digital marketing can positively impact your brand, but the ten reasons illustrated above should be enough to pique your interest, at least. Suppose you don't currently have a digital marketing strategy in place. In that case, you may be losing out on a significant opportunity to attract more consumers and build a more solid connection with your current customers.