Is Digital Marketing Expensive? by Certified Digital Marketing Agency, Absolute Digital
Updated: Oct 20, 2020
The age-old question - Is digital marketing expensive? Let's tackle this question today with real data and insights from a digital marketing agency's perspective! Well, 'expensive' is subjective, and it all depends on your business's budget and of course the ROI you will get from that digital marketing campaign, right?
Unlike traditional marketing, digital marketing brings about consistency, convenience, as well as better ROI.
You have the ability to strategize a digital marketing campaign across all online platforms. This means that if you find an effective method that works for your business, you can amplify and scale that ad campaign to maximise your reach and conversions to new audiences. A good example would be Facebook Advertising where you can run the same ad across Facebook, Facebook Stories, Instagram, Instagram stories!
With digital marketing, you have the accessibility to market your business to anyone in the world with a click of a button. As cliche as it may sound, it's true. When you run a Google campaign or Facebook campaign, once you have the right strategy, you can easily replicate this to different variations and target audiences to reach out to them via the internet. As opposed to traditional marketing where you need contacts in each industry/country to advertise on their ad space on buildings or banners.
You get extremely good ROI. Of course, it varies depending on industry and the effectiveness of your ad campaigns. But generally, digital marketing generates better ROI because of these reasons: 1. more people spend their time online (rising due to the current global pandemic situation), 2. you are able to target the most potential buyers, therefore, saving on ad cost to those who aren't really serious buyers, and 3. you can set your own ad budget based on the market average so you don't overspend.
Perhaps one of the largest benefits of digital marketing is its ability to track, analyse, and improve your campaigns in real-time! With the right digital marketing tools, you can use Google SEO, Google SEM or Facebook Marketing with ease. All you need to do it to understand the numbers, and the basic meaning of each term such as Cost-Per-Click (CPC), Cost-Per-Lead (CPL), Conversions, Impressions and so on. With these basic knowledge, you are able to analyse the reports from your digital marketing campaigns and come up with an effective strategy to increase ROI and minimise your ad budget.
Experience plays a part as well. Don't put a large budget because you are still experimenting on the right strategy and may end up losing money on the wrong target audience. Speak with an experienced digital marketing agency and tap on their experience if you feel the need to seek help. Once you have identified the right market and found an effective strategy to reach your objectives, then you should increase your budget to expand your reach.
Using the right platform(s), your digital marketing campaign can reach anyone in the world with an internet connect. As of July 2020, there are an estimated of 4.57 billion of these people. Now, if you are able to identify which of these 4.57 billion are your potential customers, I can almost guarantee someone will buy your product!
Compared to traditional media where you blast your ads aimlessly to the masses and hope someone potential sees your ad, digital marketing offers accurate targeting and real-time monitoring whereby you are able to connect, engage, and customise your ad because you know you these groups of potential customers are.
Regardless of your business's objectives or goals, there's a digital marketing campaign for you! The option to customize the ad goal is endless. For instance, you can choose to generate more leads via a landing page or online leads generation form, or alternatively you may want to increase your e-commerce store traffic.
Whatever your objectives might be for your Google SEO, Google SEM, or Facebook Marketing campaign, the right digital marketing strategy is out there. You just have to find it and implement!
Ultimately, it all comes down to the cost of advertising. Let's compare that to the Cost-Per-Lead or CPL in digital marketing terms. It refers to the average cost of the ad campaign divided by the number of leads generated (or other campaign objectives).
The average CPL varies depending on your industry. Understanding this, you can set your ad budget accordingly with your digital marketing campaign objectives. This depends on the competitiveness of your industry. For instance, the retail industry is more competitive because more retailers are online wheres professional services are slower to adapt to digital marketing therefore you can benefit from first mover's advantage.
Is Digital Marketing Expensive?
With these considerations in mind, it's up to you as the business owner to decide if digital marketing is expensive. Generally, digital marketing is less expensive because you are able to track where your ad budget is going and can calculate the cost per lead and derive the value of each new lead to factor in the cost and get your overall profit per service/product.
The more effective your digital marketing campaign, the lower the CPL and higher ROI.
To summarise, digital marketing is cheaper than any form of advertisement. With the ability to measure ROI and convenience to scale your Google SEO, Google SEM, or Facebook campaign, you will be able to get more value for your dollar.
Having an effective digital marketing campaign also helps improve your cost to profit ratio so it is important to find the right digital marketing agency to help create a stronger online presence and increase your reach to the right target audience.
If you would like to read more about digital marketing, we have other related articles for you here. Alternatively, if you would like to reach out to us, you may drop us a message at email@example.com or give us a call at +65 8892 1290