What is Digital Marketing?: Everything you need to know

What is Digital Marketing

Digital marketing promotes your business online wherever your customers spend time—whether social media, search engines, email, or websites. Think of it as having multiple digital storefronts that work 24/7 to attract and engage customers.

Why It's Essential Today

Today's consumers start their buying journey online, regardless of whether they purchase online or in-store. If your business isn't visible in these digital spaces, you're missing out on potential customers actively looking for your products or services. With smartphones becoming the primary way people find businesses, being digitally present isn't optional anymore—it's as fundamental as having a business phone number.

Difference between Traditional Marketing and Digital Marketing

Unlike traditional marketing (billboards, print ads, TV commercials), where you broadcast one message to everyone, digital marketing lets you:

• Target specific customer groups precisely Engage in two-way conversations with customers

• Track exactly how many people saw and responded to your marketing

• Adjust your strategies in real-time based on what's working

• Start with small budgets and scale up gradually

• Engage in two-way conversations with customers

Common Myths and Misconceptions

• "Digital marketing is only for online businesses" - False! Even local brick-and-mortar stores need a digital presence

• "It's too expensive for small businesses." - You can start with minimal budgets and scale up

• "Results should be immediate" - While some channels (like ads) work quickly, others (like SEO) build value over time

• "You need to be on every platform" - Focus on platforms where your customers spend time

Quick Self-Assessment

You likely need digital marketing if:

• Target specific customer groups precisely Engage in two-way conversations with customers

• Your competitors appear in Google searches, but you don't

• Customers ask why they can't find you online

• You rely mainly on word-of-mouth marketing

• You can't measure your marketing ROI accurately

• Your target customers are under 65 years old

• You want to expand beyond your local market

Types of Digital Marketing Services

Search Engine Marketing

SEO (Search Engine Optimization)

SEO, or Search Engine Optimization, is improving your website to increase visibility when people search for products or services related to your business on Google, Bing, and other search engines. The better your pages' visibility in search results, the more likely you are to garner attention and attract prospective and existing customers to your business. Hiring an SEO company will give you access to optimal strategies and professional talent, which will execute all the required technical activities and provide reports. Click here to read more about SEO services and why it matters.

How much will it cost?

Doing SEO yourself will be less effective as you might lack the right tools and experience. So, It is always advisable to hire an SEO company. Hiring an SEO company will generally cost anywhere from ₹25,000 to ₹1,00,000

When can you expect an ROI

SEO is a highly competitive space. A good SEO company can show a substantial increase in organic traffic within 4-6 months.

Google Ads/PPC

PPC (Pay-Per-Click) marketing is a digital advertising model where you pay only when someone clicks your ad. It's like placing a billboard that's free until someone walks into your store because of it. You bid on keywords relevant to your business using platforms like Google Ads. Perfect for quick results, you can control costs, target specific audiences, and measure exact returns on every rupee spent.

How much will it cost?

Think of CPC as a bid for customer attention. When someone searches for your keywords, you pay only when they click your ad. Costs vary widely:

• Local services: ₹10-50 per click

• E-commerce: ₹15-100 per click

• Insurance/Finance: ₹100-500+ per click.Your actual cost depends on competition and keyword quality.

Setting Realistic Budgets

Start with this formula:

1.Target monthly sales × Profit per sale = Revenue goal

2. Typical conversion rate (2-5% for most industries)

3. Calculate backward: If you need ten sales and the conversion rate is 2%, you need 500 clicks

Example monthly budgets:

• Starter: ₹15,000-30,000

• Growth: ₹30,000-1,00,000

• Established: ₹1,00,000+

Expected ROI

Healthy ROI benchmarks:

• E-commerce: 200-400%

• Services: 300-500%

• B2B: 200-600%. Expect 3-6 months to optimize campaigns for best returns.

Hidden Costs to Watch

• Agency management fees (10-20% of ad spend)

• Landing page creation (₹5,000-20,000)

• A/B testing costs

• Tracking setup (₹2,000-10,000)

• Image/copywriting (₹1,000-5,000 per ad set)

• Regular optimization time

Remember: Start small, test different approaches, and scale what works.

Social Media Marketing

Essential Platforms

Choose based on your business:

• Instagram/Facebook: Best for B2C, retail, visual products (highest ROI for most businesses)

• LinkedIn: Essential for B2B and professional services

• Twitter: Great for customer service and news updates

• YouTube: Valuable for tutorials and brand building. Don't spread yourself thin – master one platform before expanding.

Content Creation Costs (Monthly in India)

• Basic Package: ₹15,000-25,000

  1. 15-20 posts
  2. Basic graphics
  3. Simple content calendar

• Standard Package: ₹25,000-50,000

  1. 30-40 posts
  2. Custom graphics
  3. Basic video content

• Premium Package: ₹50,000-1,50,000

  1. Daily posts
  2. Professional videos
  3. Stories/Reels

Ad Spending Guidelines

Minimum adequate monthly budgets:

• Starting: ₹10,000-20,000

• Growth: ₹20,000-50,000

• Established: ₹50,000+ Always start with a 70% budget on your best-performing platform.

Managing Social Media Teams

Structure options:

• In-house (₹20,000-40,000/month per manager)

• Digital marketing agency (₹30,000-1,00,000/month)

• Freelancer (₹15,000-35,000/month)

Influencer Marketing

Costs per post:

• Micro (10k-50k followers): ₹5,000-15,000

• Mid-tier (50k-500k): ₹15,000-50,000

• Macro (500k+): ₹50,000-5,00,000+

Benefits:

• Instant credibility

• Ready-made audience

• Authentic content

• Better engagement rates

Remember: Quality engagement matters more than follower count.

Content Marketing

Blog posts and articles

Blog posts and articles remain cost-effective in India, with professional writers charging ₹1,000-5,000 per article, depending on research depth and word count. Many startups leverage content writers from tier-2 cities who offer competitive rates while maintaining quality.

Video content

Video content is gaining traction, though production costs are significantly lower than in Western markets. Essential marketing videos cost ₹15,000-50,000, while high-production corporate videos range from ₹50,000-2,00,000. Many Indian businesses are succeeding with smartphone-shot social media content and YouTube channels.

Infographics and custom images

Infographics and custom images from Indian designers typically cost ₹3,000-15,000, with many businesses utilizing design hubs in cities like Bangalore and Pune. Stock image subscriptions cost ₹1,000-3,000 monthly.

Email newsletters

Email newsletters are increasingly popular, with Indian email marketing platforms like WebEngage offering more localized pricing (₹5,000-30,000 monthly based on subscriber count). Newsletter content creation typically costs ₹2,000-8,000 per edition. The Indian content marketing landscape benefits from lower operational costs, with many businesses running full content marketing campaigns for ₹30,000-1,50,000 monthly. The rise of vernacular content has also opened new opportunities, though quality multilingual content typically commands premium rates of 20-30% above English content.
Benchmarks for Monthly Digital Marketing Budgets in India:

• Micro-businesses: ₹20,000-50,000

• Small businesses: ₹50,000-2 lakhs

• Medium enterprises: ₹2-10 lakhs

• Large enterprises: ₹10 lakhs+

Metrics and KPIs in Digital Marketing

A successful digital marketing plan will lead to improvements in the following metrics:

• Website Traffic: Measures total visits, unique visitors, and page views.

• Conversion Rate: Percentage of visitors completing a desired action (e.g., purchasing or signing up).

• Bounce Rate: Percentage of visitors leaving the site without interacting.

• Cost Per Acquisition (CPA): Average cost to acquire a customer.

• Return on Investment (ROI): Revenue generated versus marketing costs.

• Click-Through Rate (CTR): Percentage of clicks on ads or emails.

• Social Media Engagement: Social Media Engagement: Likes, shares, comments, and followers.

• Customer Lifetime Value (CLTV): Total revenue a business expects from a customer over time.

• Email Open Rate: Percentage of opened marketing emails

• Keyword Rankings: Position in search engine results for targeted keywords.

Success Metrics for Each Channel:

• SEO: Organic traffic growth, keyword rankings, bounce rates, conversions

• Social Media: Follower growth, engagement rates, click-through rates (CTR)

• Email Marketing: Open rates, CTR, conversions, list growth

• Paid Ads: Cost-per-click (CPC), conversion rates, return on ad spend (ROAS)

• Content Marketing: Page views, time on page, social shares, leads generated

Each channel has distinct metrics, but the collective aim is to see conversion growth and a solid ROI over time.

Digital marketing Funnel

The digital marketing funnel maps a potential customer's journey, guiding them from discovering your brand to becoming loyal advocates. It consists of four key stages:

Awareness (Top of the Funnel)

At this stage, the goal is to attract as many people as possible to your brand.

• Tactics: SEO, social media, display ads, and content marketing.

• Objective: Build brand visibility and educate your audience.

• Example: A blog post or a viral social media campaign introducing your product.

Consideration (Middle of the Funnel)

Here, the focus is on nurturing leads and building trust.

• Tactics: Email marketing, lead magnets (eBooks, webinars), and remarketing ads.

• Objective: Address pain points, showcase your expertise and provide solutions.

• Example: Sending personalized emails with case studies or testimonials.

Conversion (Bottom of the Funnel)

This stage emphasizes turning leads into customers.

• Tactics: Clear calls-to-action (CTAs), landing pages, and special offers.

• Objective: Encourage immediate action, such as purchases or sign-ups

• Example: Limited-time discounts or free trials to drive purchases.

Retention & Advocacy (Beyond the Funnel)

After conversion, retaining customers and turning them into advocates is vital.

• Tactics: Loyalty programs, personalized follow-ups, and customer satisfaction surveys.

• Objective: Build long-term relationships and encourage word-of-mouth referrals.

• Example: Rewarding loyal customers with exclusive discounts or referral bonuses.

Why the Digital Marketing Funnel Matters

• Improved ROI: Guides your strategy, ensuring resources are used efficiently at every stage.

• Customer Insights: Guides your strategy, ensuring resources are used efficiently at every stage.

• Sustainable Growth: Converts one-time buyers into repeat customers and advocates.

Digital Marketing Roadmap

Define Goals and KPIs

Start by identifying your business objectives and the key performance indicators (KPIs) to measure success.

• Examples of Goals: Increase website traffic, improve conversions, or grow social media engagement.

• Tactics: Set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound)

• Outcome: A focused plan with measurable results.

Understand Your Audience

Knowing your target audience is critical to success.

• Tactics: Conduct audience research, create buyer personas, and map the customer journey.

• Objective: Understand their pain points, preferences, and behaviors.

• Outcome: Personalization and better engagement.

Choose the Right Channels

Determine where your audience spends time and focus your efforts there.

• Examples: Social media, search engines, email, or paid ads.

• Tactics: Prioritize platforms like Instagram for millennials or LinkedIn for B2B.

• Outcome: Maximum impact with optimized resources.

Create and Optimize Content

Content is at the core of your digital marketing efforts. objectives and the key performance indicators (KPIs) to measure success.

• Tactics: Develop a content calendar, use blogs, videos, and infographics.

• Objective: Attract, engage, and convert your audience.

• Outcome: Improved brand visibility and trust.

Implement Paid Campaigns

Boost your efforts with targeted advertising.

• Tactics: Google Ads, social media ads, and remarketing.

• Objective: Reach your audience faster and drive conversions.

• Outcome: Increased leads and sales.

Monitor, Measure, and Adjust

Analyse performance and refine your strategy for ongoing success.

• Tactics: Use tools like Google Analytics, CRM software, and heatmaps.

• Objective: Identify what’s working and what’s not.

• Outcome: Continuous improvement and better ROI.

Why a Digital Marketing Roadmap Matters

• Clarity and Focus: Provide a clear plan to achieve your goals.

• Efficiency: Ensures your resources are allocated to the right strategies.

• Scalability: Adapts to the evolving needs of your business and audience.

Typical Timeline:

First 3 Months:

In the initial phase, the focus is on building the foundation. This includes setting up marketing channels (social media, email, SEO), optimizing the website for performance and search engine rankings, and creating initial content. You may expect modest improvements in traffic and engagement as algorithms take time to recognize your efforts. Initial metrics like website visits, impressions, and essential lead generation are vital indicators. Typically, you see an increase in brand awareness and engagement by the end of this phase.

6-Month Milestones:

By the six-month mark, your digital marketing campaigns should begin to mature. SEO efforts should show better search engine rankings, content marketing initiatives should produce measurable traffic, and paid campaigns will yield more qualified leads. Metrics to track include increased traffic from organic searches, higher conversion rates from targeted campaigns, and improved customer engagement across channels. Expect a more robust social media following and email list growth, with a measurable uptick in inquiries or sales conversions.

1-Year Goals:

After one year, the cumulative effects of a consistent digital marketing strategy will be evident. SEO efforts should significantly improve rankings for targeted keywords, with organic traffic and conversion rates climbing steadily. Brand authority should be well-established across social media, and content marketing should drive consistent inbound leads. E-commerce businesses might experience higher sales, while service businesses should see more bookings or client acquisitions. ROI becomes more apparent at this stage as long-term investments in content, SEO, and brand building pay off.

Realistic ROI Expectations:

It’s essential to set realistic ROI expectations. As foundational work is laid, returns may be minimal in the first three months. However, by six months, you should start seeing returns in the form of increased web traffic, leads, or customer inquiries. By the one-year mark, you should expect a clearer understanding of which channels drive the most results, with measurable ROI from paid and organic efforts. ROI varies based on business size, industry, and marketing budget.

How to Choose the Right Agency/Freelancer

Red Flags to Watch For:

• Unrealistically low price quotes.

• Lack of a formal portfolio or testimonials.

• Poor communication or inconsistent responsiveness.

• Absence of clear contracts and deliverables.

Essential Questions to Ask:

• Can you show examples of similar projects?

• What is your process for revisions and feedback?

• How will you measure success?

Contract Terms to Verify:

• Clear timeline and scope of work.

• Ownership of website elements.

• Are we adding value or just trying too hard?

• Maintenance and support agreements.

Price Comparison Guidelines:

• Compare costs across agencies and freelancers for similar scope.

• Evaluate the breakdown of services offered in the quote.

Service Level Expectations:

• Responsiveness and communication frequency.

• Detailed project roadmap with milestones.

Wendy's Twitter Account

Common Pitfalls and How to Avoid Them

Overspending on the wrong channels:

Many businesses pour funds into channels that don’t align with their audience. Focus on data-driven decisions by testing and adjusting your strategy based on performance metrics.

Unrealistic expectations:

Expecting immediate returns can lead to disappointment. Digital marketing is a long-term investment; set realistic timeframes for achieving results.

Contract lock-ins:

Be wary of agencies that tie you into long-term contracts without flexibility. Ensure there’s a clause for early termination if goals aren’t being met.

Hidden costs:

Check for any additional fees not mentioned upfront, such as extra charges for campaign adjustments, reporting, or design work.

Performance measurement mistakes:

Not setting clear KPIs can make it hard to gauge success. Ensure you regularly review performance metrics aligned with your business objectives, such as conversion rates, cost per acquisition, and overall ROI. By addressing these issues proactively, businesses can avoid costly mistakes and build a sustainable, high-performing digital marketing strategy.

Managing Your Digital Marketing Team

Communication protocols:

Clear communication is essential. Set up channels like Slack or Microsoft Teams for daily collaboration, and schedule regular check-ins to keep everyone aligned.

Reporting requirements:

Establish consistent reporting on KPIs such as traffic, conversions, and ROI. Use tools like Google Analytics, HubSpot, or internal dashboards to track and share performance.

Performance reviews:

Conduct regular reviews of both team members and the overall strategy. Focus on what’s working and areas for improvement, and celebrate achievements.

Agency vs. in-house comparison:

In-house teams offer more control and alignment with your brand, while agencies bring specialized expertise and scalability. Each has benefits based on your budget, business size, and specific needs.

Hybrid team management:

Combining in-house and agency teams allows for flexibility. In-house teams handle day-to-day tasks, while agencies provide expert input on specialized campaigns. Coordination is critical to ensuring seamless collaboration. Use tools like Trello or Asana to manage tasks effectively across both teams.

Tools and Technology

Essential monitoring tools:

Tools like Google Analytics and SEMrush help monitor website traffic, keyword rankings, and user behavior, offering actionable insights into digital marketing performance.

Reporting platforms:

Platforms like Google Data Studio, HubSpot, and Tableau generate comprehensive reports that track KPIs, helping in data-driven decision-making.

Communication tools:

Slack, Microsoft Teams, and Zoom streamline communication and collaboration, ensuring smooth coordination across remote teams.

Cost-effective alternatives:

Consider affordable options like Trello for project management, Mailchimp for email marketing, and Canva for design.

Must-have vs nice-to-have tools:

Must-have tools, such as SEO, analytics, and communication, directly impact business performance. “Nice-to-have” tools, such as advanced graphic design software, add efficiency or aesthetic value but aren’t critical.

Legal and Compliance

Privacy laws and regulations:

Compliance with data privacy laws like GDPR and CCPA is crucial for handling user data responsibly. These regulations protect user information and establish transparency on how businesses collect and store data.

Data protection requirements:

Businesses must implement security measures to protect sensitive customer data, including encryption and regular security audits.

Advertisement regulations:

Digital ads must adhere to legal guidelines like truth-in-advertising laws to avoid misleading content.

Email marketing rules:

Rules such as CAN-SPAM require explicit consent and opt-out options for recipients.

Social media policies:

Businesses must follow platform-specific content and user engagement policies, ensuring ethical and compliant practices.

Making Digital Marketing Work for Your Business

Creating Your Digital Marketing Roadmap

To build a successful digital marketing strategy, start by outlining the key areas you want to target, such as SEO, social media, email marketing, and paid advertising. Identify and prioritize your goals based on your current business needs and available resources. For example, if brand awareness is your priority, focus on social media and content marketing first. A roadmap will serve as a timeline to guide you through each stage, helping you stay on track and measure progress.

Setting Realistic Goals

One of the most important aspects of a digital marketing plan is setting achievable and specific goals. Whether you aim to increase website traffic by 30% in six months or grow your email subscriber list by 500 people in three months, ensure your goals are measurable and realistic, given your resources and timeframe. Additionally, align your digital marketing efforts with your broader business goals to ensure channel consistency.

Building a Sustainable Strategy

Consistency and sustainability are crucial for digital marketing success. Avoid spreading your resources too thin by over-committing to every channel. Instead, focus on those that deliver the highest return for your business. You can continuously manage a sustainable strategy without burning out your team or budget. For instance, automate email campaigns and use scheduling tools for social media to maintain regular content without overextending your team’s capacity.

Measuring Success

Key performance indicators (KPIs) will help you gauge the effectiveness of your marketing efforts. Track website traffic, lead conversions, click-through rates, and customer retention to measure your success. Regularly review these metrics to determine what’s working and what’s not, allowing you to make informed adjustments to your strategy. Tools like Google Analytics and social media dashboards will provide valuable insights into your campaigns' performance.

Scaling Your Efforts

As your business grows, so should your digital marketing efforts. Scaling can involve increasing your ad budget, expanding your social media presence, or investing in more sophisticated SEO techniques. It’s essential to ensure your systems are scalable, meaning they can handle increased traffic, leads, and customer engagement without faltering. A scalable strategy also involves continuous learning—monitoring industry trends and adapting to technological changes and customer behavior to stay competitive.

Troubleshooting Guide

When to Change Strategies

If your digital marketing efforts consistently underperform despite regular optimization, it’s time to reassess your approach. Indicators include low conversion rates, high bounce rates, or diminishing ad spend returns. Also, pay attention to changes in consumer behavior, competition, or market trends.

How to Evaluate Performance

Evaluate your performance against KPIs like click-through rates, ROI, customer acquisition cost (CAC), and lead conversion rates. Regularly review analytics to pinpoint bottlenecks.

When to Switch Providers

Switch providers if you face ongoing communication issues, need for more transparency, or unfulfilled promises. If performance metrics consistently fall short and your current provider offers no viable solutions, a change may be necessary.

>

Crisis Management

Act fast for sudden drops in traffic, negative PR, or account hacks. Ensure your crisis response plan includes monitoring social media, real-time team communication, and rapid content updates. Be prepared to mitigate damage by addressing the issue publicly and resolving it quickly.

Budget Optimization

Reallocate resources to higher-performing channels when certain tactics outperform others. Regularly review the cost-per-click (CPC) or return on ad spend (ROAS) and tweak campaigns for better cost-efficiency, especially when new trends or consumer habits emerge.

Future-Proofing Your Digital Marketing

Emerging Trends

Watch AI-driven marketing, voice search optimization, and video content trends. As consumers increasingly prefer personalized experiences, brands must adopt tools for advanced audience segmentation and targeted content delivery.

Technology Changes

Technologies like machine learning, chatbots, and automation will shape the future. Ensure your digital marketing strategy integrates these innovations to remain competitive and scalable.

Market Shifts

Market conditions can change due to economic trends or consumer behavior shifts. Stay flexible and adjust campaigns according to demand, competitor activity, and new opportunities.

Adaptation Strategies

Prepare for change by constantly testing new platforms, reviewing analytics, and training your team on the latest technologies. Regularly review performance data to assess the need for change.

Long-term Planning

Invest in long-term strategies that align with your business goals, such as building brand loyalty and creating sustainable content pipelines. Focus on scalability and flexibility in your tools and marketing tactics to effectively adapt to future industry developments.

ROI Calculation Guide

Return on Investment (ROI) shows how much profit you make from your marketing efforts. To find ROI, subtract your costs from your earnings, divide by the expenses, and multiply by 100. A high ROI means your marketing is working well.

Investment Tracking

Investment tracking helps you see where your marketing money goes. Use simple spreadsheets or apps to record all expenses. Group them by channels like social media or ads, and check regularly to see which ones bring the best results.

Revenue Attribution

Revenue attribution tells you which marketing channels bring in sales. You can use different methods: first-touch shows the first point of contact, last-touch highlights the final action before purchase, and multi-touch gives credit to all interactions. This helps you spend money wisely.

Cost Per Acquisition (CPA)

Cost Per Acquisition (CPA) measures how much you spend to gain a new customer. To calculate CPA, divide your total marketing costs by the number of new customers. This helps you know if your spending is effective.

Lifetime Value (LTV) Calculation

Lifetime Value (LTV) estimates how much a customer will spend with you over time. Calculate it by multiplying the average amount they spend per visit, how often they buy, and how long they stay a customer. Understanding LTV helps you invest wisely in acquiring new customers.

Performance Metrics

Performance metrics are numbers that show how well your marketing is doing. Keep an eye on Click-Through Rate (CTR), which shows how many people click on your ads, and conversion rate, which tells you how many make a purchase. These metrics help you improve your strategies.

Risk Management

Effective risk management is essential for protecting your business and ensuring sustainable growth in digital marketing. Here are key aspects to consider:

Budget Protection

Budget protection involves keeping your marketing expenses under control. Set a budget for each campaign, monitor spending regularly, and adjust as needed. This prevents overspending and ensures you get value from every rupee invested.

Brand Safety

Brand safety means ensuring that your ads appear in appropriate places. Avoid associating your brand with harmful or inappropriate content by using safe ad placements and reviewing where your ads run. This helps maintain your brand’s reputation and trust with customers.

Data Security

Data security is crucial for protecting customer information. Use secure platforms, encrypt sensitive data, and regularly update security measures. This builds customer trust and helps you comply with regulations like GDPR and India’s IT Act.

Contract Safeguards

Having clear contracts with vendors and partners protects your interests. Include terms on deliverables, timelines, and payment structures. This minimizes misunderstandings and ensures everyone is on the same page, reducing the risk of disputes.

Crisis Prevention

Crisis prevention involves preparing for potential problems before they occur. Create a crisis management plan that outlines how to respond to negative situations, such as public backlash or data breaches. Being proactive can help protect your brand’s reputation.

Conclusion

A Digital marketing plan for your business is imperative for running a successful business in the 21st century. Plenty of agencies like ours help businesses like yours every day, but before you hire a professional agency, you need to know what goes on behind the scenes and how exactly you can measure progress. And don’t worry, it is 100% worth it if you partner with a good agency with expertise and proven results. We provide a free consultation for your business. To book a session, Click here.