8 Ways to Increase Sales Through Digital Marketing

Human life becomes more and more dependent on the digital world, which, in its turn, changes at the faster and faster pace. Only a short time ago, laptops and Internet was only becoming an important part of the day-to-day activity. Today, using the Internet in personal and commerce network is different and usual laptops recede into the past.

Digital world exercises significant influence over the economy of developed countries. In accordance with data of IAB Company, back in the year 2011, the USA GDP reached out 14, 5 US Dollars Trillion, and contribution of Internet ecosystem into this amount of money was 741 US Dollars Trillion. For the years 2007-2011, GDP of the country increased to 56%. What trends are going to define the digital world in the nearest future? The leading experts are trying to answer this question relying on primarily monitoring led by different specialized companies. Online marketing is to play an important role in the development of economics and not only. A few directions are most likely to become the most significant for the development of the digital world.

«Big Data»

For the recent years, was created 92% of all the existing information in the world. Such a boom is specified with new technological opportunities to save and process — significant development of PC capacity and storage systems cheapening. A modern smartphone is of more capacity than the most active 1985 reference computer! There are more than 120 million of smartphones in the USA only, 30 million more than a year before, and for $600, one can buy a disc, with enough space for all the world`s music. A huge information file is to create daily and an active information exchange is done due to different tools: more than 30 mn of posts get published on Facebook monthly, 72 hours of video are posted on YouTube every minute, in December 2012 comScore fixed more than 1,4 Trillion data operations.

Ability to extract useful information out of the huge data file means a leap in competition and productivity of business, and, as a result, its quality change. According to McKinsey consulting company estimates, a rational use of «big data» will give an opportunity to increase operating margin up to 60% in retail only.

Development of the trend will depend a lot on enough number of specialists who are able to work with «big data». Currently, only in the USA 140 000 of analytics specialists are missing, who are able to make a complex analysis of huge information files, and up to 1,5 mn of managers, who can be responsible and make decisions.

E-commerce

Low prices and wide assortment make it to where the direction is actively developing. Market growth rates of online retail are twice faster than custom sales, and now about 10% of retail sales volumes are about it.

Retail chains, working exceptionally on the Internet, such as Amazon or eBay, have already become very huge enterprises, more than 110 mn of visitors view Amazon monthly, and volume of sales in III quarter of 2012 in North America was 7,9 US Dollars Billion, 33% more than a year beforе. However, in different segments, the popularity of online medium is significantly differed: 30% of all the consumer electronics is for sale online and only 1% of food items. Thus, companies, doing retail sales through different channels, are to follow the trend on channels and items in order to detect direction on time where online promotion is competitive. Secondary distribution decreases also price pressure, as long as it is easy to find a proposal at a fraction of the cost on the Internet.

Mobility

Recent years were marked by the explosive growth of demand for mobile devices. For example, more than 50% of all the mobile devices owners use them in the USA. More than 48 mn of people have tablet PC, which is 300% more than a year before.

Development of mobile technologies is nearly concerned in reformatting of the е- commerce segment. They change the principles of making a decision on buying this or that thing and transactions accomplishment. In accordance with comScore, for a year mobile devices became used 50% more often for access to the Internet on issues connected with further buying. M-commerce segment grows 30% a year, and on weekends and holidays around 13%, online purchasing is done on mobile devices, about 70% of them— on tablets. Users more often simply come over a usual store just to look at things, then, with the help of special applications for smartphone and tablet compare prices and make orders at online medium. Of course, the fact that stores become looking more like shop-windows, a retail segment is good news and makes to special happening, which also makes it to where a price pressure decreases.

Social Media

With a consumer interest in social networks, marketing specialists entered the field for commercialization of this commercial channel. But, despite big perspectives, there are issues on marketing activity connection and clients carrying out, estimation of free and paid services, ROI, and others. Of course, with each year social networks make the sweep bigger: LinkedIn counts 41 mn of active users, Twitter — 40 mn, Google+ — 29 mn, Pinterest and Instagram — more than 25 mn each. Only for November 2012, 150 mln of unique users in the USA were registered on Facebook, and at that, an average time an American user spent online 10% decreased. And it is a very important trend, which is all ready to be taken on account in the development of marketing strategies.

Digital advertising platforms

Advertising spending actively moves to the sphere of the Internet. In accordance with IAB, in III quarter of 2012 volume of online advertising showed calendar-year rise 18%, in general for the first III quarters segment 15% increased, just as advertising market in general—3,8% only. The most dynamics can be seen in the segment of mobile (+92%), video (+18%), search (+17%) and banner (+12%) advertising. Volumes of multimedia advertising, on the contrary, 34% decreased, and it is no surprise — high price stimulates movement to other formats. Even now online advertising with videos is more effective (and cheaper) than TV Advertising.

Audience targeting

Advertising campaigns in the form of simple placement in media space are not notable for high efficiency. Availability of online platforms and possibility of data exchange in real time allows showing up to 20% of advertisement on request, and part of such shows will grow. Targeting accuracy increase allows, with the help of highly specialized platforms, to buy only necessary volumes of advertising and required customer base. However, side-by-side hosting of targeting advertising and premium content is reflected on the efficiency of the latter, which makes additional difficulties for resources, providing with advertising services.

Digital media efficiency monitoring

A few years ago, the three main players of the advertising market IAB (on the side of those who publish online advertising), ANA (on the side of advertisers) and 4A (on the side of agencies) 3MS program was launched (Making Measurement Make Sense), the main task of which was creating metrics of digital estimation of different parameters of an advertising efficiency, from impressions to a view standards. Based on millions of feedbacks processing about the leading advertisers General Mills, P&G, Ford and Allstate it has been discovered, that final customer does not happen to see 30% of displayed advertising simply because s/he either cannot wait for the full rendering or scroll to the end of the page! Naturally, this part of advertising products does not have any influence on customer`s behaviour. Some publishers have already begun to guarantee visibility of advertising, which allows competing directly with TV- advertising and creating more effective multiplatform campaigns.

Targeting based on cookie files also seemed to have difficulties. The thing is that cookie files have a unique indicator of the browser (but not a user), and oftentimes they are deleted, which is why it is not always possible with their help to properly reflect demographic as well as behavioural characteristics. The accuracy of such a method is truly higher than a traditional one, for behavioral analysis, it is 36%, for one factor (for example, the female audience) — 70%, two factors (let us say, females aged 18-35) — 48%, and for three— only 11%.

Multiplatform media planning

Media content consumption grows fast: TV-shows are available online, portable devices; TV-advertising is delivered online. Multiplatform gives advertisers wide opportunities to reach out to a user, besides with his preferences being taken into account. In addition, at that makes the process of media planning more difficult and measuring of content consumption on platforms.

In accordance with comScore, mobile devices with small screens are rather an addition but not make the bigger disappear. Thus, during broadcasting of Olympic Games in London, average audience spent 25% of the time with a few channels running at the same time, on different devices. In accordance with IAB, mobile marketing with using strategies of active customer engagement already reached 8% in the segment of digital advertising and grows 92% a year.

Upon that, marketing campaigns have to solve an important additional problem — privacy. On one hand, it is no small degree relies on personal data of clients, on the other — this data is to be protected. Now anonymous cookie files are the main basis of digital marketing and new tools are yet to come.

The role of GRP parameters keeps on growing at the same time in planning and efficiency measuring. Latest information about viewing time and targeting accuracy allows to plan and deliver advertising if needed — and correct campaign on-the-fly. Appropriate service comScore Campaign Essentials applied by more than 160 advertising agencies in about 32 countries, and with starting using this service ROI from digital advertising has grown in 5-6 times.

About the author: Melisa Marzett who is currently writing for Royal Paper Editing Service, is a big fan of marketing in general and digital marketing in particular. It is trendy and Melisa wants to be in the fashion with all the things happening, to be aware of the latest information.