Digital marketing. Just another one of those new, fancy buzzwords, to sound smart in meetings, or is it the real deal?
What is it even?
This guide will show you what’s what.
First popularized as a term in the beginning of the 2000’s, digital marketing has actually been around way longer.
Like, WAY longer. About 100 years longer, to be exact.
Here’s a pic of the first digital marketer in history:
His name: Guglielmo Marconi.
What? An Italian?
Yup. In 1896 he was the first human to demonstrate a “public transmission of wireless signals.”
This dude invented the radio.
Shortly after his little demonstration in England, morse signals were transmitted across open water.
And while it would take another 10 years for the radio to reach the general public, it sure didn’t take the creators long to realize they could use it to sell stuff.
The first live broadcast was from an opera performance at the Met, and guess what people did after it?
Buy show tickets!
Digital marketing was born.
I bet you’re surprised. I didn’t mention smartphones, apps, facebook ads or blogs at all.
That’s because digital marketing has nothing to do with the internet.
Definition
As usual, Wikipedia does a crappy job at explaining: Digital marketing is an umbrella term for the targeted, measurable, and interactive marketing of products or services using…
Ugh!
I want an easy definition I can remember! Here’s one: Digital marketing is any form of marketing products or services, which involves electronic devices.
That’s the reason it has been around forever (because electronics have) and why it doesn’t necessarily have to do with Google ads or retargeting.
Digital marketing can be done both online and offline.
And both kinds matter.
Why digital marketing matters
Remember billboards?
I do.
As a young kid in California, my experiences from the back seat of our car where mostly alternating between: “Mom, when are we there?” and “Uh, look, McDonalds, can we go?”, whenever one of those 10 feet cardboards popped up on the side of the road.
Growing up with Indian parents, the answer to both of those would most times be the same: “Not yet.”
Sometimes big brands would even start a billboard war, like this one between Audi and BMW, which got quite a few laughs:
Unfortunately it’s dead.
The reason why billboards like the ones above will die, is perfectly illustrated in a single picture of a Volvo.
Because frankly, the future of driving will look like this:
Not a single passenger will spend their time looking at the road.
Do me a favor, the next time you drive and are giving a friend a ride, take a peek at the right side.
Just for a second.
Even now, chances are they’ll be looking at their phone.
Heck, in a world where 9% of all drivers are on the phone one way or the other (texting or calling), at any given moment during daylight hours, how can we think billboards have a future?
If not even the driver is looking at the road any more, who’s supposed to see those cardboard advertisements?
And that’s not even considering self-driving cars, on which both Apple and Google are working (you know it’s going to happen).
Elon Musk suspects they’ll be here around 2020, that’s in only 5 years.
That means you don’t have much time to figure out this digital marketing stuff before you can power down your old school printing press and close up shop.
The share of people spending more time using electronic devices is only going up from here.
With Americans spending 11+ hours on electronic devices every single day, there’s not much left until we spend ALL our time in the digital world.
And while yes, online marketing is the reason 25 year olds can now sit in their living room and earn 2 million a year from playing video games, offline marketing still has its place as well.
Let’s take the helicopter and circle around to get an overview.
Overview
The 2 big groups of digital marketing are online and offline. That said, since I’ll talk about online marketing in a separate guide, I’ll only mention the different areas of online marketing here for the sake of completeness.
The 7 big categories of online marketing are:
- Search engine optimization (SEO)
- Search engine marketing (SEM)
- Content marketing
- Social Media Marketing (SMM)
- Pay-per-click advertising (PPC)
- Affiliate marketing
- Email marketing
Unbounce created a great infographic that sums up all kinds of online marketing in one neat chart.
The beginner’s guide to online marketing on Quick Sprout is a great place to get started.
Okay, that said, what other digital marketing is there? There’s plenty, actually.
Here are the 4 big categories of digital offline marketing.
First, there’s what I call enhanced offline marketing. This is a form of marketing that is entirely offline, but enhanced with electronic devices.
For example, if your restaurant uses iPads for your customers to make their orders on, the offline experience of say, eating Thai food, is enhanced with this electronic device.
People have been using digital media to enhance their marketing for decades (you’ve only forgotten in what ways, you’ll see).
Next, there’s radio marketing. The next time you hear an annoying, over-enthusiastic car dealer shout every word of his or her commercial, thank Mr. Marconi.
Of course we can’t forget television marketing. TV ads have been around for more than half a decade (and since 1953 also in color, nationwide – yes, there was a time before color TV).
Lastly, the biggest, and fastest growing area of offline marketing, with admittedly also a lot of flops, busts and failures: phone marketing.
Let’s look at the 4 areas in more detail.
Enhanced offline marketing
What’s the difference between a billboard somewhere in the desert of Arizona, and a billboard on Times Square in NYC?
The size? The product?
3 letters: LED. Light emitting diodes.
All of the billboards in Times Square are electronic and interactive!
Why? Because in the desert of Arizona, no one’s competing with you for people’s attention. If you have a billboard at all, you win.
But on Times Square, attention is probably more valuable than anywhere else in the world. Over 330,000 people cross it each day.
As if that wasn’t enough to distract you, there’s buses, taxis, promoters shouting and then, of course, the electronic billboards.
Some of them are even interactive, showing live feeds of the people on the square or pictures of customers.
Renting a billboard space on Times Square for a year will set you back a whopping $1,000,000 to $4,000,000.
Sounds expensive? Wait till you hear the prices for Super Bowl commercials.
What other forms does enhanced offline marketing take?
What do you see when you walk into an Apple Store these days?
People leaning over iPads, Macbooks and iPhones.
If you have any kind of electronic product, any product demo is a form of digital marketing.
Okay, the next one’s a good one. If you know this, you can consider yourself an extremely lucky kid:
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This is a demo disc for the original PlayStation, and several of these were handed out with other games or sometimes even magazines.
It was the same with PC magazines, remember when they came with CDs and later DVDs and you couldn’t wait to throw them into your disk drive and see what samples were on them?
A little different than a demo, these are product samples in digital format.
People still do this, think of all the wannabe rappers in your hometown, handing out mixtapes and CDs and now probably USB sticks, to get you to listen to their music.
Alright, time to take a look at the category of digital marketing that’s probably around the longest.
Radio marketing
Over 100 years have passed since that original first live broadcast of the opera performance at the Met and guess what – radio is still here.
Since radio did fairly well in transitioning to the internet, it hasn’t taken as big of a hit as TV, and even old school radio still matters.
- Radio still reaches 85% of the US population every week
- Listeners listen 2 hrs per day on average
- 40% of all radio advertising expenses worldwide comes from the US
- About half the population of the US listens to internet radio at least once a month
Now, while profits have shrunk, radio isn’t dead. Thanks to Pandora’s 80 million users, there are still about $4 billion in profits made each year.
But aside from creating a kick ass, creative radio commercial, that will do well, what else is there?
Recently, a good move internet radio has made is to do what most podcasts do:advertise in the beginning of shows.
Especially if you host a show revolving around a certain topic, for examplecoaching, you can plug programs and products right before and at the end of the show.
Since social media is all the hype these days, it should be fairly easy to find a local radio station, and get on a show, be interviewed or negotiate a deal with them.
Once you do, be sure to get some sponsorships, to make sure you’re a prime candidate for the station and they give you the premium slot and best air time possible.
In most cases, doing well on radio means being entertaining.
Cadillac and Dairy Queen are two brands that come up with solid radio commercials on a consistent basis.
TV marketing
Television marketing is such a Goliath, it’ll hardly go away. It’s also easily the industry where the most money is burned each year.
Ever since Google Video turned into Youtube, the efficiency of TV ads has gone down.
Who wants to watch a crappy MTV show host to review a game they have no clue about, when they can join 40 million subscribers (!) watching PewDiePie not only rock video games, but also deliver hilarious comments.
All free of charge, of course.
So why are TV commercials nearly worthless, when the average American still watches 4 hours of TV each day?
Unspecific.
TV ads are unspecific. In a world of retargeting, social media and email marketing, we are so used to being marketed around products we already care about, that we blatantly ignore everything that’s not remotely relevant to us.
If we can even be bothered to watch a movie on TV, because it’s not yet on Netflix, a company making $5 billion in revenue annually by now, then what do we do?
We record it, and fast forward through all the commercials.
We’re used to being in total control.
Marketers have to be smarter and sneakier.
TV commercials just hit everyone across the board.
You could see a hemorrhoid cream commercial, followed by an Oreo ad and a burger spot, all while being overweight, diabetic and 22 years old.
Such a person would be a horrible target to be viewing these ads, but with TV you never know who you’re going to reach, just how many eyeballs you’ll get.
So apart from a few insomniacs, who watch infomercials late at night, ensuring Dr. Ho still sells a few of his de-compression belts, is TV advertising dead?
Not entirely.
There still is one type of TV ad worth running, but it’ll cost ya.
Remember I mentioned a billboard on Times Square for a year will set you back a million?
Thanks to their cross-pollinating effect, the often viral and memorable commercials still pay for themselves.
Roughly 10% of all TV commercial related shares on social media come from Super Bowl ads. So do about 8% of all views on Youtube that go to TV commercial videos.
If your commercial goes on the blacklist, the viral effect is usually even stronger. Like this one from Carl’s Junior, that caused a lot of noise this year:
(damn you, Charlotte McKinney)
Super Bowl commercials have the highest retention rate, as this infographic shows. Over half of the participants asked recalled the Budweiser “Puppy Love” commercial.
What’s more, these commercials become online assets, generating millions of views over time, such as the famous Star Wars commercial by Volkswagen, which has generated 62 million views to date.
(will the force be with him?)
Sadly, the hype of the Super Bowl commercials is probably more of a remnant from a success period that’s about to fade.
The $200 billion companies still spend annually worldwide on TV commercials are hardly justifiable, as already every 10th person in the United States has a Netflix account.
TV in the form as we know it is going to die and will make way for the more custom-tailored experiences we are already getting used to.
So if you do plan on doing offline digital marketing, you’d best be off by focusing on a market of the future.
Like this one.
Phone marketing
We still don’t realize this and give it nearly enough credit.
Smartphones are killing it.
Now over 80% of internet users own a smartphone and in 2014 we crossed the tipping point where now more people are accessing the internet from their phone, than via a desktop PC or laptop.
Mobile marketing is here, and in 2016 the amount spent on mobile ads will first exceed the amount spent on desktop ads.
In 2020, there will be spent as much money on mobile ads, as there is now spent on TV advertising, how’s that for fast growth?
But before we look at the kind of phone marketing you can do for smartphone users with an internet connection, let’s look at some offline ways to market your products.
There are 2 apps, which are grossly underestimated, yet they are on every phone, smart or not:
Calling and texting.
Cold calling is the act of calling a person with no prior contact, and trying to sell them something.
While at roughly 3 sales per day (marketers call 52 people a day on average, with about 17 calls until they find a buyer), it doesn’t have the scalability of social media or email, it’s still a valid approach to marketing in 2015.
The tactic works, but doesn’t scale very well when selling to end customers (B2C) and making contact before trying to sell helps close the deal (especially in B2B, which is all about connections).
What works better is marketing via texting, an “app” that is also available on each and every single phone out there.
While the MMS obviously tanked after the web became available and mobile data usage costs so little, texts are still a good way to reach people and bring value in 160 characters or less.
While you should definitely get permission first, for example in the form of having your customers text a certain word to a phone number, there are several providers that offer text marketing at scale.
Here are some examples how you can leverage text message marketing:
Special deals, coupons and discounts are a great way for restaurants to get additional customers and turn walk-ins into regulars.
DVD rental service Red Box pulled off a successful campaign as well. They let their customers text DEALS to 727272 in exchange for a gamble.
They would receive a random discount on their next rental, between $0.10 and $1.50.
Over only 10 days they connected with 400,000 customers and generated over 1.5 million text messages.
Using text reminders as a customer service can also enhance your mobile marketing, like Walmart does. They remind customers when their prescription is ready for pickup. To date they’ve sent over 1 billion text reminders.
Another option is to create a loyalty program where your customers can trade points collected in an app or when paying via their phone. Only 13% of retailers have one, so it’s an option to stand out.
Since 98% of all text messages are opened, and 90% of them within 3 minutes of arrival, text messages are also a great opportunity to promote a giveaway you’re doing.
Using a tool like Heyo you can easily create a giveaway that’s optimized for mobile and works well on Facebook and other social media platforms, like this one:
However, there is one area of mobile marketing you should probably avoid: QR codes.
These barcode-like images used to pop up everywhere a few years ago, and while some marketers still swear on them, they’re pretty much dead.
Back in 2011, only about 6% of mobile phone users in the US had scanned a QR code, all year, and by 2012 97% of consumers didn’t even know what a QR code was.
While I can’t be 100% sure about why they weren’t the big hit everyone wanted them to be, I suspect because the system was too complex.
Then the corresponding content would open within the app, which was often not optimized for mobile.
Big brands also didn’t respect the context of QR codes, putting them in very unfortunate places, like subway stations with no cell reception or on TV commercials, where they were only visible for a few seconds.
So don’t waste your time with QR codes, your time and money is best spent elsewhere.
Conclusion
That’s the scoop on digital marketing. As you can see the internet is by far not the only place for marketers to gather success, even in 2015.
Of course no one can afford to miss out on the opportunities of the web and eventually every marketer will have to master online marketing.
But employing a few of these offline marketing tactics can help you not put all your eggs into one basket and diversify your lead generation tremendously.
Here’s the breakdown of digital marketing again:
Online marketing
- Search engine optimization (SEO)
- Search engine marketing (SEM)
- Content marketing
- Social Media Marketing (SMM)
- Pay-per-click advertising (PPC)
- Affiliate marketing
- Email marketing
Offline marketing
- Enhanced offline marketing
- Electronic billboards
- Digital product demos
- Digital product samples
- Radio marketing
- Radio commercials
- Show sponsorships
- TV marketing
- TV commercials
- Teleshopping
- Super Bowl commercials
- Phone marketing
- Cold calling
- Text message marketing (giveaways, coupons, loyalty programs)
- QR codes
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