How Is Technology Aiding The Development of Digital Marketing & Media?
Over the last decade, technological developments have had a significant impact on the digital marketing and media industry. Looking back to 10 years ago, smartphones were still an emerging product and the world wide web was not as broad and associated as it is now. Fast forward to today, technology is more transparent and accessible; there are numerous websites and platforms to advise on the best products and services, ranging from entrepreneurial freelancers, to independent advisory firms utilising decades of experience.
The transformation of marketing and media continues to accelerate as a result of evolving technology that has made tools cheaper and more accessible. Companies such as Amazon and Tesla have seen a remarkable change due to digital transformation. They have taken simple retail sales and actioned digital strategies, for example using consumer data to analyse the bestselling products to then produce a high quality and competitive product themselves, meaning their competition have been left playing catchup.
The digital funnel is a process companies implement to convert potential consumers into active buyers. This entails awareness, consideration, purchase, and retention. The development of technology has made the digital funnel a more economical and efficient process for businesses to generate sales. The substantial quantity of information that is now available due to the internet of things allows businesses to tailor products to the consumers fast changing preferences.
Furthermore, the amount of time consumers spend on mobiles, tablets and laptops continues to increase, making it a core reason to why businesses are focusing on online sales. Platforms such as Instagram and Facebook allow for an advanced level of product promotion, as a result of their 3.81bn global users. Another key example is Boohoo, who generate all their sales through social media and online influencers. Digital marketing has increased brand awareness and has enabled retailers to practice target marketing by identifying specific consumer groups e.g. those who have searched for similar products. The platforms enable increased business to consumer (B2C) interaction, effectively increasing the brand profile.
Consumer behaviour and interaction is also evolving. Digital media is giving people more options on what they consume and how they consume it. Social Media enables people to communicate with the company, allows them to ask questions and get a response. This drives customer retention and assists in developing relationships.
In addition, artificial intelligence has greatly evolved within digital transformation. The amount of systems that are accessible has increased the number of analytical systems. Website tracking and analytics is greatly benefiting the performance of digital marketers. Google analytics provides companies with insight into their website performance, providing website click-throughs and campaign performance. Domain hosting companies now also provide the systems used to analyse websites, which include the likes of Kissmetrics and Spring Metrics. This allows management to track and report website traffic, and in addition provides an in-depth analysis of visitors.
The transformation of digital marketing and media combined with the increasing number of strategies has meant businesses across all industries have been able to diversify their revenue streams. This evolution is expected to continue for the foreseeable future, and therefore it is vital companies adapt several marketing strategies to drive their top line.