Digital marketing

CONTACT:
Pekka Korpela
pekka.korpela@talvi.com
tel + 358 40 820 67 70

In generally digital marketing has been understood same as Internet marketing but there is still a difference.

Digital Marketing is the practice of promoting products and services using digital distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner. In wider perspective digital marketing encompasses all digital channels; television, internet, digital cinema, mobile, radio, games, etc.

Internet marketing is more like using Internet as a communication channel. Internet marketing functions can be divided into different categories like: e-mail-, search engine-, display ads (banners)-, microsite- and viral- marketing. It covers different targeting and Web 2.0 techniques: contextual targeting, behavioral targeting, RSS, Podcasts, advergames, ads within online video, user generated content, blogs, social networks, SMS, WAP-sites, in game ads and product placement in virtual worlds / second life-services.

Internet marketing

Internet marketing ties together creative and technical aspects of the Internet, including design, development, advertising, and sales. Internet marketing does not simply entail building or promoting a website, nor does it mean placing a banner ad on another website. Effective Internet marketing requires a comprehensive strategy that synergizes a given company’s business model and sales goals with its website function and appearance, focusing on its target market through proper choice of advertising type, media, and design.
Internet marketing also refers to the placement of media along different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, e-mail marketing, and Web 2.0 strategies.
Internet marketing is relatively inexpensive when compared to the ratio of cost against the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and purchase products and services at their own convenience. Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis.
Internet marketers also have the advantage of measuring statistics easily and inexpensively. Nearly all aspects of an Internet marketing campaign can be traced, measured, and tested. The advertisers can use a variety of methods: pay per impression, pay per click, pay per play, or pay per action. Therefore, marketers can determine which messages or offerings are more appealing to the audience. The results of campaigns can be measured and tracked immediately because online marketing initiatives usually require users to click on an advertisement, visit a website, and perform a targeted action. Such measurement cannot be achieved through billboard advertising, where an individual will at best be interested, then decide to obtain more information at a later time.

Four New Ps
* Personalization: It is here referred customization of products and services through the use of the Internet.
* Participation: This is to allow the customer to participate in what the brand should stand for; what should be the product directions and even which ads to run.
* Peer-to-Peer: This refers to customer networks and communities where advocacy happens. The historical problem with marketing is that it is “interruptive” in nature, trying to impose a brand on the customer. This is most apparent in TV advertising. These “passive customer bases” will ultimately be replaced by the “active customer communities”. Brand engagement happens within those conversations. P2P is now being referred as Social Computing and is likely to be the most disruptive force in the future of marketing.
* Predictive modeling: This refers to algorithms that are being successfully applied in marketing problems.

Pull vs. Push
There are two different forms of digital marketing.

Pull
Pull digital marketing technologies involve the user having to seek out and directly grab (or pull) the content. Web site/blogs and streaming media (audio and video) are good examples of this. In each of these examples, users have a specific link (URL) to view the content.

Push
Push digital marketing technologies involve both the marketer as well as the recipients. Email, SMS, RSS are examples of push digital marketing. In each of these examples, the marketer has to send the messages to the users in order for the message to be received.

Push and pull message technologies can also be used in conjunction with each other. For example, an email campaign can include a banner ad or link to a content download. This enables a marketer to have the best of both worlds in terms of their marketing messaging.

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