Why Digital Advertising is Profitable

The impact of the Internet in many aspects of people’s lives have carried itself over to almost all markets ever conceived, with digital advertising driving at the helm of major promotional and marketing campaigns.

The majority of businesses, specifically in the micro, small and medium scale industries are still clinging to traditional marketing methods for promoting their services and products. They are complacent with the same campaigns year end and year out, and receive the same, if not declining, results in a rapidly evolving and connected marketplace. Those who realize the value and advantages of Digital Advertising have transformed their sales and marketing campaigns to focus on online advertising channels.

Why Use Digital Advertising for Your Business?

Sales and marketing is an essential aspect in doing business. Business owners should not expect new customers to come to them at their own accord, but should apply whatever is effective to reach out to potential clients and eventually generate sales and revenue. As technologies evolved, the marketing strategies used during the last few years may not be effective in generating results in the year 2013 and beyond.

Still, many businesses have not fully realized the full potential of Digital Advertising and would stick to the same marketing routines each year. As products and services evolve over the years, the same can be said true on how businesses promote these products and services to generate more sales, eventually leading to Digital Advertising as the most effective means in this highly networked and interconnected world.

Tips on How to Set-up A Profitable Digital Advertising Campaign:

1.Direct Your Own Digital Advertising Campaign

Before starting out on a profitable Digital Advertising campaign for your business, owners should realize that they should remain at the forefront on their campaigns, just like in any other aspects of their business. Of course, it would be wise and practical to delegate certain aspects of Digital Advertising to experts and professionals in this field, but it should be you as the business owner who should maintain control of your company’s growth and overall vision using this marketing medium. The key here is to get a clear understanding of the tools you can have at your disposal that you can use for your Digital Advertising campaign. You should be the main person who has the most knowledge and insights about your business and should be at the forefront of your Digital Advertising campaign, which you should treat as another or possibly your major marketing channel.

2.Use The Top Digital Advertising Channels

If you are the business owner who already have a website for your business. The next step that you will need to do is to understand the different options that you can use to promote your website and business online. This is an integral part of digital advertising that you must pay attention since these channels will be the primary source of your leads and prospects.

Top 3 Most Popular Digital Advertising Channels:

Social Media Marketing – An integral and important aspect of Digital Advertising is learning to use and take advantage of the full potential of social media channels like Facebook, Twitter, Instagram, Snapchat, Youtube and LinkedIn. Among these channels, the most popular and most effective for small business owners include Facebook, Twitter, YouTube and LinkedIn. Your business can also do the same and leverage on the power of these social media channels, making full use of the interactive technologies and channels that will create more and better engagement with new and existing clients, delivering a whole new level of personalized customer services that will generate more sales and brand loyalty.

Search Engine Optimization – Optimizing your site to make it more search engine friendly is also another digital advertising channel that you can use to gain more targeted visitors for your business. Time and time again, search engine optimization proved itself to be a powerful medium for any business because of its capability of providing your site the visibility that it needs online. It allows your site to be found in the most popular search engines like Google, Yahoo and Bing when a user searches for something online to solve a pain point.

Pay-per-click – PPC is also a great digital advertising medium similar to SEO. But this relieved you from the fear of search engine or Google penalization when doing SEO. Instead, it allows you to tap into the massive Digital Advertising channels provided by the search engines (Google Adwords by Google, and Bing adCenter by Bing). By using PPC to generate traffic for your business, it allows you to be seen across these search engines when a user searches or types a keyword phrase. And the best thing about PPC is that, you can target almost all the longtail keywords that is related to your business and you will only pay them when someone clicked on your ad.

These top 3 digital advertising channels are enough for your business to have a maximum visibility and customer reach online. It is also advisable for you to explore some other digital marketing channels, but I advise you to do it once you gain familiarity to these top 3 and already have great results from using them.

4. Understand Different Digital Advertising Metrics

After choosing the channels you’ll use for your Digital Advertising campaign, the next step is to identify and get a clear understanding of the various Key Performance Indicators (KPIs) that you should monitor and analyze to help you make your digital campaign more successful. These metrics will tell you what is working and what is not for your particular business niche, thereby saving you significant amount of resources and focusing only on aspects of your Digital Advertising campaign that would create the biggest impact. These metrics include:

Visitors Analytics – These metrics can be as detailed as telling you information about where a particular visitor came from and what browser he or she used, but the key to using these metrics effectively is to serve as your gauge to determine if visits are getting smaller or expanding according to numbers and area of reach. If you have a subscriber or email list, the same principle applies true, with declines or increases in the size of your list dictating your next steps.
Conversion Rates – Ideally, the number of visitors coming to your site that gets converted or takes an action and became subscribers or leads should be between 2% and 4%. Smaller numbers than these will tell you that there is something amiss in your Digital Advertising campaign. Another similar metric is the sale conversion rate that monitors how many of your site visitors eventually make a purchase and generate revenue for you.

Revenue per Keyword – A clear indication of what works for your Digital Advertising campaign is the amount of leads as well as the revenue that a particular keyword has generated. This will help you gain an insight on what keywords will provide better results and stop focusing on less profitable one.

5. Monitor the Success of Your Digital Advertising Campaign

Finally, business owners should learn how to monitor and define the success they have achieved from their Digital Advertising campaign. The real value for Digital Advertising is if it will generate sales and profit for your business, and the ability to identify if you have succeeded in this aspect or not is vital for the direction to which your campaigns will be headed. It is up to the business owner however to define what constitute success for him, which can be broken down into:

  • Increase in sales
  • Generate new leads and prospects
  • Higher rankings in the search engines
  • Gain a following in social media channels
  • Better brand exposure and recognition
  • Increased retention rates for existing customers

Digital advertising has indeed helped businesses reach their highest potential, with Inc’s surveys putting success rates to as high as 71%. Business owners should realize that customers are now going online and are relying on online channels not only to purchase products and services, but to interconnect with other people from around the world. The only way to reach out to these customers is to aggressively use Digital Advertising channels or get left behind by those who have successfully implemented them.

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JD Parkman is a former US Marine that has started and managed over half a dozen startups in education, healthcare, cryptocurrency and the digital media space. JD Parkman is an innovative and sharp Fortune 500 Digital Marketing and Lead Generation Consultant with approximately a decade and a half years’ experience strategizing, managing, and closing multi-million-dollar advertising campaigns on a global scale.

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