Digital marketing is a new area of work with clients. It is based on the direct participation of the consumer in an advertising campaign. Interactive marketing uses a huge opportunity for Internet resources. Nevertheless, considering all new technologies, which appear in our life, small businesses inevitably face some problems connected with this sphere. In our article, you can find some of them.
1. Big data
“Big data” is an explosion of information, spawned by the unprecedented increase in computer power combined with a sharp drop in its value and storing information. These trends have given rise to an avalanche of data that hits consumers in their daily lives when they interact with the internet.
Big data gives possibilities for small businesses to learn more about their customers. They cannot only personalize some products and services but also change their product development in the way people want to see it. However, companies face problems as many clients reject the hyper-personalized offers considering it to invade their personal space.
From the other hand, big data will help businesses and governments to work more effectively and efficiently. Some Facebook Marketing tactics using in digital marketing for all small business. However, as often happens, there is one more problem: today we are in a desperate need of talented people who would be able to harness big data and take advantage of it.
2. Customer intelligence
In 2009, Dave Frankland from Forrester Research stated that in the near future, marketing will be in demand of experts in the field of “customer intelligence” — gathering and analyzing information about consumers, their preferences, and needs. The logic of Mr. Frankland is simple: consumers are becoming more demanding; it forces businesses to become more customer-centric. Accordingly, brands want to get as much data about their customers as possible to meet their needs in a better way.
The ability to capture and analyze the behavior of consumers is one of the core competencies of digital marketing. The small business owners need to understand how their clients think and act, and why they think and act that way. To do this, small businesses must possess the tools of customer intelligence, including the collection, processing, and analysis of information.
3. Social networks
The amount of time people spend on social networks has consistently been the highest compared to the rest of the internet. The rise of user activity on social networks has challenged the market participants with the question – how to use these new channels of communication with the consumer?
Social networks were often used for getting some advertising effect “buzz marketing”. Still, there are too many questions. What is better: paid popularity in social networks or earned? How to calculate income derived from money investments in social media? Today lot of research experiments are created to provide answers to such questions. Small businesses should consider it too.
Social media can serve not only as an advertising platform – market researchers are thinking about how to make them a source of data about consumer opinion; some of them even believe that in the next five years social networks will completely replace the customer surveys as a source of such information.
Understanding the culture of other countries is always necessary: when existing products and services go into the new markets, while new products and services to new consumers are developing. This is to recognize the emerging threat of competitors, which a few months ago no one even heard of. To solve this problem, a better understanding of international market and culture through better collection and analysis of information is obligatory, especially when your business is going to the international market with the help of digital marketing.
5. The performance and effectiveness of digital media plan
Numerous studies around the world aimed at identifying the number of views of digital advertising by the audience clearly show that in this sense there is much that could be improved. From studies conducted with videos that have received billions of views and from dozens of large advertisers, it was found that on average about 30% of all ads are not seen by users. This is mainly because people do not scroll through the web page till the end, where the announcement may be. It is obvious that such ads do not effect on consumer behavior.
Another important issue that must be mentioned is the relative accuracy of targeting based on cookies. Studies have shown that even though such targeting surpasses the capabilities of traditional media, it is often not so perfect as they say. Since cookies are sometimes removed and because it is a unique browser identifier (but not a person), private cookies may not accurately reflect the demographic and behavioral characteristics of the user in certain moments of time.
6. The omni-channel reality
The appearance of a huge amount of smartphones and iPads and other devices fundamentally changed the way consumers use the Internet. Today 13% of all Internet pages are seen with the help of these devices and the proportion is growing.
Mobile and portable technologies radically change the behavior of consumers when making purchase decisions and transactions. Moreover, these changes bring both new opportunities and new challenges. Speaking of the first, advertisers can now deliver information in relevant geographically targeted messages (for example, to send a promo of any brand at a time when the recipient is in the shop). They may also show the advertising to consumers when they come to a website. The app is another way to provide consumers with mobile advertising or promotional message. Retailers that sell exclusively online greatly surpassed their competitors, operating on different channels.
7. Protection of private information
The era of digital marketing is accompanied by a much more powerful discussion of the issues of information security. A considerable part of private information refers to the observation of the consumer behavior for further ad targeting. It is funny that all new approaches to the targeting of digital advertising, which significantly improve the relevance and effectiveness of the ads, do not need any personal data anymore. The promotional strategies with consumer behavior are based on anonymous cookies.
This industry is very dynamic; it constantly pushes forward the incredible growing power of computers, provoking the constant and rapid innovations. However, as history shows, any restructuring that is driven by technology, has not only its winners but also losers. It is clear to any business that ignoring the changes brought by digital technology will definitely lead to disaster.
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