The Prospects of Digital Marketing during Recession
The recession in many countries has ended a lot of trends while giving birth to many others. It is a known fact that it has changed many business practices, along with many principles of doing business. One of the practices which have gained strength during recession is that of digital marketing. Companies favor this form of marketing for a number of reasons; whether it is the rise of the digital age, or simply because of the low cost factor, digital marketing has turned into the method of choice for almost all forms of businesses.
Among the many reasons which tilt the scale in favor of digital marketing, the cost factor stands tall.
However, there are other factors as well, like the fact that it doesn’t require any long term commitment. For instance, PPC ads can be considered. These ads can be enabled or disabled on a regular basis. Furthermore, emails can be sent with regard to financial considerations. Also, things like banner ads carry a cancellation clause, which has a time frame of around 72 hours.
The ones mentioned above, are only a few benefits of digital marketing, and listed below are reasons for the success of digital marketing during a recession:
As mentioned earlier, like all online functions, this proves to be less expensive, considering traditional marketing tactics. Online campaigns can result in a greater impact and can be implemented much more quickly than traditional campaigns. This is a major factor which makes this marketing type so attractive.
Generate more Revenue from Existing Customers
It is a fact the outbound marketing budgets are decreasing, which has shifted the focus of companies from attracting new customers to retaining the existing ones. However, the focus is not limited to retaining the customers, it involves, generating as much revenue as possible from them. This could be in the form of repurchases, or frequent purchases or encouraging and facilitating large purchases. The best way to encourage such behavior is through email marketing.
Saves resources from going to Waste
The financial resources of a company will go to waste if the product or service is being advertised to people who have no intention of buying it. Online marketing is capable of targeting audiences with much more precision, in comparison. This in turn leads to less financial burden on the company. It also encourages the trend of targeting audiences in online ad placement, as well as behavioral targeting.
The concept of behavioral targeting is simple; it records the number of visits a customer makes on the webpage of a company. This information is in turn used to target the customer using appropriate ads, based on the preferences highlighted though the recorded visits.
Precise details regarding Investment
One of the greatest benefits of digital marketing is the fact that it offers the option of better measurability, while keeping a better track on customers, as compared with the traditional marketing methods. It is able to keep track of every mouse click, which serves to build the profile of the customer and results in effective and efficient marketing.
Online methods provide an accurate tap on the return on investments. However, this is possible only if tools of digital marketing; emails, banner ads, organic search, paid search, blogs and social media, are implemented effectively. These tactics build a user scoreboard which is then used to ascertain the exact return on investment and other similar dimensions for every campaign.
The abovementioned factors provide a wide range of playing space to companies. This enables companies to test various tactics and to generate the best possible responses. These factors serve to increase the popularity of digital marketing during a recession, among businesses.
Author Bio: Rosemary Brown is a business and market researcher with over 20 years of experience. She has been extensively involved in exploring the impact of technological innovations on business organizations, enterprise culture and organizational processes. Currently, Rosemary is conducting a series of experiments to study the impact of web-based help desk tools like ProProfs Knowledge Base Software (http://www.proprofs.com/knowledgebase/) on customer retention & acquisition. Rosemary has a Masters Degree in Marketing Management and Strategy.