Overview of the ‘Digital Marketing’ System
Digital marketing utilizes new forms of media to increase the content ROI relative to the traditional media (e.g., commercials on mass media). In the traditional mode, it is not only costly to create rich content catering to different tastes but also impossible to control the traffic-conversion rate in the long tails 1. Digitization reduces content creation cost and enables niche content creators to expose their content to the entire global audience. Niche content is more effective and efficient in traffic generation and lead conversion because of greater relevancy and closer relationship with niche audience.
A key component of the digital marketing process is user data. User data live on the consumer side of the content exchange process. Traditional content relying on one-sided communication fails to connect with the differing consumer demands, preferences, and needs 2. By contrast, in each vertical niche, connections and relationships can be repeated and interactive. Continuous user feedback becomes readily available from the recursive exchange of real, unmet human needs. During the exchange process, valuable user data reveals profitable problems and new solutions, which is either unavailable or costly to collect through the traditional channel.
The instant feedback also comes directly from the ROI of the content creation and user interaction process. Digital marketers can directly read the metrics on a dashboard and relate such metrics to their content’s marketing performance 3. The learning cycle will dramatically decrease for digital marketers to quickly pivot their content or find better product matches to improve content performance. In digital marketing, quick learners can scale their content creation and monetization system more quickly.
Anderson, Chris. The long tail: Why the future of business is selling less of more. Hachette Books, 2006.↩
Kamins, Michael A., et al. “Two-sided versus one-sided celebrity endorsements: The impact on advertising effectiveness and credibility.” Journal of advertising 18.2 (1989): 4-10.↩
Morris, Neil. “Understanding digital marketing: marketing strategies for engaging the digital generation.” (2009): 384-387.↩