Importance of Digital Marketing for Startups: Are you planning to start a business or you have just put your feet in the world of startups? Then by now you should also be aware of the challenges that a start faces in the market. A startup faces challenges like competition, capital, branding, customer trust, etc. But one of the most common challenges that most of the startups faces is-“marketing”.
These days marketing is actually not so hard as it was a decade ago. The introduction and evolution of digital marketing has made marketing very convenient and is benefiting businesses a lot. Digital Marketing plays a very important role now to reduce the gap of the business to customer bridge.
Digital marketing is lot convenient these days because almost everyone is online via social media, emails, search engines, smart phones, etc. So lets dive into our topic “importance of digital marketing for startups”.
Also read: 8 types of Digital Marketing Strategies.
Challenges faced by Startups:
1. Competition– One of the biggest challenge faced by startups is fierce competition. As there are already well established players in the market who has already have a proper share in the market, startups has no option but to be perfect in every aspect, to compete with them.
2. Capital– Startups mostly don’t have there own capital they are mainly based on external sources of finances like, investors, bank loans, etc. The biggest amount of the capital goes to product development whereas another big share of the finance is fixated for marketing campaigns. Startups grow at a slow pace and it takes time for them to achieve their break even point.
3. Branding– Every business should create their own brand name ( by brand name I refer to the value of their own).Branding is very important as it adds value to your business. It is based on your brand logo, name, tagline and most importantly your image in the eyes of your customer.
Most startups lack the knowledge of brand creation or believe that it is a long term thing and will just happen by time (which is partially true; terms and conditions applied).
4. Marketing– Another big challenge faced by startups is marketing themselves the right way and to the right customer. Business needs to appear in front of its potential customer to create and fulfill a need & to build a place of its own in the customers life. So it needs to continuously run effective marketing campaigns.
Stats describing the Importance of digital Marketing for business:
Before moving onto the importance of digital marketing for startups. Check these stats that to get the idea of the importance of digital marketing for business.
- 98% of sales reps are reaching their quotas through social selling.
- Over half of all online purchases are now completed using mobile devices.
- 51% of consumers make use of mobile devices to identify new brands and items on the market.
- 54% of social browsers use social media to research products and services before they buy. (Source: GlobalWebIndex )
- 63% of customers actually expect companies to offer customer service through their social media – and 90% of social media users have already connected with a brand or business through their chosen platform (Source: Smartinsights)
- Adults aged 18 to 34 are most likely to follow a brand on social media, with 95% of them doing so. (Source: MarketingSherpa)
- The likelihood that a consumer will recommend a brand on social media to others after having a positive experience is about 71%. (Source: Ambassador)
- For every $1 spent on Google Ads, businesses make an average of $2 in revenue.
- 64% of consumers will click on a Google ad when they are looking to buy items online.
- On average, 46% of users act after viewing a video ad.
- Location-specific digital ad campaigns are 20x more effective than traditional banner ads that are not location-based.
- Over 51% of smartphone users have found new brands or products while searching from their mobile device.
- When you combine video with full-page ads, you can boost engagement by 22%.
- Only 7% of search engine users will ever make it to the third page of the search engine results.
- 80% of consumers will remember a video ad they viewed in the past 30 days.
- The average smartphone conversion rate is up by 64%.
- 37% of online shoppers report using social media for inspiration when they’re ready to make a purchase.
- Ecommerce sellers that use product videos can increase product purchases by 144%.
- 64% of online consumers have reported that watching a Facebook video has influenced them to make a purchase.
- 72% of consumers want brands to share discounts and other promotions on social media.
- Nearly 60% of marketers think that influencer marketing will become increasingly more important to their marketing activities in the next 3 years.
- Website visitors that come from PPC ads are more likely to buy than those who come from organic search.
- 52% of online shoppers who click on a PPC ad will follow up with a call to the business.
- PPC ads can boost brand awareness by up to 46%.
- Marketers who invest more than 10% of their marketing budgets on measurement are 3x more likely to beat sales targets by 25%+.
Importance of digital marketing to startups:
1. Brand Awareness
Brand identity is the first impression of the product or services that stays in the mind of customer. Digital Marketing helps business to spread the brand awareness to a broader audience.
Digital Marketing channels like social media helps in generating great results by creating brand awareness even though your marketing campaign does not bring any sales revenue (at the moment).
2. Conversion Rate Optimization (CRO)
Conversion does not only mean how many visitors have became your customers, or made purchases, it also includes email signups, creating accounts, completing surveys, downloading app, etc. And all of this is considered as the final success of a marketing campaign.
3. Customer Engagement
Customer engagement is very essential point for any business as it helps in creating and maintaining relationship between the customer and the business. Customer engagement helps the business in knowing their customers better, knowing their opinions and demands so that they can be fulfilled.
4. Tracking ROI
Unlike traditional marketing, the marketers can actually analyse their campaigns accurately in digital marketing. They can correctly know which of their marketing campaign is bringing them the best results (i.e., ROI).
5. Customer Reach
In digital marketing marketers can analyse their actual customer reach. There are various tools to know who is watching your ad, who is clicking/reacting on your ads, what is the bounce rate of your site, etc.
6. Online visibility– With traditional marketing the businesses were only limited to market to local customer (some traditional marketing channels provide national exposure too, which are expensive as well), digital marketing breaks the global borders at a much inexpensive budget.
With the help of Search Engine Marketing (SEM) businesses have an option to show their ads at the top of search engines boosting its visibility.
Startups need lots of efforts in the beginning and you can’t risk putting the wrong efforts. So, choose right digital marketing tools and services for your business.
Also Check: Traditional Marketing vs Digital Marketing