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Arpit Savla

How Is Digital Marketing Cost Effective.

Updated: Feb 5, 2021

Yes, why not. Digital Marketing is one of the most viable, economic and relatively more visible form of marketing.

Nowadays, most of your businesses are already expensive to run, and you might be hesitant to expend your resources without assurance of adequate returns.

Digital marketing provides cost effective strategies and platforms to generate maximum traffic on your website, which will expand your business and increase its profitability.




However, the likely question on your mind will be- HOW does digital marketing reduce my cost in comparison to traditional marketing?

To answer your question, lets first establish a simple fact. Wouldn’t you rather invest in an advertisement where you pay based on performance and is visible virtually to the entire human civilization or in a costly billboard or newspaper ad that is seen by a limited audience? Digital marketing has little risk, low costs and great reward. This combination was pretty much unheard of in the business world.

The table given show the difference between average estimate costs of various modes of marketing- digital as well as traditional and gives a comparison between both.

Costs in the two types of marketing

TRADITIONAL MARKETING

AMT($)

DIGITAL MARKETING

AMT($)






As apparent from the table, the cost of digital marketing is almost four times less than that of traditional marketing with a much more impactful target area both geographically as well as psychologically. Moreover, it is generally observed that digital marketing provides tremendous returns per capita investment as compared to its other alternatives.


It is always important to know the “what, where and how” of your business activities.the same applies to marketing activities.

You must keep in mind your operational and personnel costs (salaries & wages) and other primary expenses while deciding your strategies. A generally followed rule is to set aside 5-10% of your revenues for marketing activities.






It is also necessary to understand the needs of your company in the marketing sector.

For instance, whether the company needs to increase just its sales for direct shoot up in its profits. Or does it need to concentrate on increasing its brand value and product awareness among consumers for the company to grow.

The most common mistake made by entrepreneurs is that they only concentrate on increasing sales. However, it is so possible that what accompany needs at a particular point of time is not increased sales but a continuous, active and loyal consumer base. If a business understands this, then it can concentrate its marketing resources on their objectives in necessary proportions, ultimately saving on undue expenses. In a nutshell you should know when and where to pull out.


You must understand and commit to the marketing technique you’re using. You must have an idea about how much time and efforts will a form of marketing take to give adequate returns on investments (ROI) and whether you can afford to give such time and yet earn considerable profits.





You must also have a robust and continuous digital appearance. This is very necessary. Inconsistency in your social media activities can lead to a fall in your web ranking which will definitely affect your sales. At the same time avoid malpractices such as black hat SEO, content copying etc.

GENERAL ESTIMATED DIVISION OF MARKETING RESOURCES

DIGITAL MARKETING ACTIVITIES

PERCENTAGE




DIGITAL MARKETING IS SCALABLE

Not only large scale companies but also small and medium scale companies can grow with the help of digital marketing. This makes digital marketing a reasonable and sound investment for all sectors of business.


I would now like to conclude by answering that Question asked in the beginning-

“HAAN ZARUR BACHEGA”. But only if you understand the market and marketing techniques correctly and completely. Also, your resources must be directed in the correct direction to obtain maximum returns with minimum returns. And one more thing. Hard work is only for JEE aspirants and CA’s. For you marketing heads, smart work is the key.













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