Online Marketing Business, What is a Digital Marketing Agency?

Online Marketing Business refers to the strategic use of Digital Resources and capabilities to obtain a competitive advantage in the market and achieve marketing objectives in support of overall business goals. An external agency that has expertise in online business promotions, marketing planning, and execution is known as Digital Marketing Agency.

Traditionally, companies utilize resources viz. Land, Labor, Capital, and Entrepreneurship in terms of Plant, machinery, office, computers, employees, processes, distribution network, etc… These resources with certain integrated capabilities build Physical assets for the company. The strategic utilization of these assets provide a competitive advantage to companies to serve the customers effectively, generate profits, and meet companies’ Goal, Objective, Purpose, and Branding.

Digital Assets

Just like physical assets are fundamental to a company, digital assets are also basic building blocks for the company in the internet age. The Digital Assets contain the digital resources and collaborated capabilities that transform the company-customer relationship and enhance the overall value created by the business. These digital assets may include the company’s website, digital content, e-mail system, e-CRM, Analytics system, Integrated Supply chain management & ERP system, Digital Marketing tools, social network, partnership with Digital Marketing agencies, relationships with online influencers, etc.

The stronger the Digital Assets of a company, the more effective will be the Marketing Functions of the organization, the deeper will be its relationship with the customers, and the dominant will be its position in the market.

Online Marketing Business

The success and sustainability of any company depend upon customers’ perception of the company, its brands, products, and services. This perception, to a certain extent, depends upon Brand Identity that the company intends to develop through advertisements, loyalty programs, and other communications & activities. However, the brand perception is majorly shaped by the customers’ experiences with the company at each of their encounters with the company.

These encounters or moments of truth may include a visit to the company’s website, the company’s ad in a magazine, an email from the company, a telecall with a sales manager, a product purchase from a local store, packaging quality of home-delivered products, the performance of products during usage, the response of a customer support executive over call, etc…

The way customers experience each of their encounters with the company, the perceived image gets reinforced, which determines their future engagements and relationship with the company.  

Eg. As per a survey, it was found that 88% of consumers don’t resume a website following a bad experience. And Personalized emails may deliver a 6X transaction success rate (conversion).

Digital Data and Customer Insight

Large-scale usage of computers and mobile phones and deep penetration of the internet has led to connected communities. These communities are exchanging information and creating a huge amount of data, which reveals their demographic, psychographic, geographic, and behavioral characteristics to the intelligent internet network.

Also, data warehousing and big data analytics of the above-mentioned data have made it possible to extract insights into target segments at the country, region, group, or individual level. Such market intelligence enables the companies to really learn and address critical issues and questions like:

  • Which products and services are in demand?
  • What is currently trending that people are searching for?
  • What are the existing gaps and what are the new features & functions expected in certain products?
  • Which of the competitive products are gaining 5-star ratings and for which functionalities?
  • Which competitive products and services are rated low and for which shortcomings?
  • What is the level of the company’s brand mention vis-a-vis competition? etc.

Traditionally, companies use to conduct research and surveys and take feedback from the customers and inputs from distribution channels to determine their business and marketing strategies. Now, the desired information and inputs for strategy formulation are coming from global digital infrastructure and the company’s digital assets.

Digital infrastructure produces data in bulk which is both structured and unstructured in nature. Specialized skills are required to conduct digital marketing campaigns to capture, store, report, and analyze the data along with budgeting and bidding for the campaigns.

The company would need skills to define business goals, marketing goals, campaign goals, and various metrics and KPIs to run the campaigns through digital marketing tools like Google Search Console, Google Ads, Google Analytics, Facebook Ads Manager, LinkedIn Campaign Manager, etc…  

Digital Marketing Agency

Digital marketing is an important component of a company’s marketing strategy. Being a relatively new and specialized field, user companies may not possess desired capabilities in-house, which may require the selection of appropriate Digital marketing software tools, their configurations, and implementation, etc.

Hence they may need to outsource Digital Marketing services, fully or partially, to certain specialized marketing agencies. These agencies are known as Digital Marketing Agencies Digital Marketing companies or Online Marketing Companies. User organization can take their services to set up the goals, conversions, KPIs, and other metrics in various tools and also budgeting and bidding services for the campaigns.

An online marketing business employs well-qualified and certified digital marketers. The digital marketing agency reaches its customer’s customers online through omnichannel marketing, multichannel marketing, or single-channel marketing. The selection of channels may depend upon the compatibility of the personas of the user company, and its products/services with the channel persona. Marketing channels to be considered may be one or multiple channels from websites, blogs, email, social media, and more.

Digital Marketing Companies, generally extend the following services to their clients:

  • Search Engine Optimization (SEO)
  • Search Engine Marketing (SEM)
  • Email Marketing
  • Social Media Marketing and Online Reputation Management
  • Content Marketing and Blog Marketing
  • Influencer Marketing
  • Mobile Marketing
  • Analytics
  • Digital Strategy and Consulting
  • Website Advertising, Display Ads, Video Ads, etc.

Benefits of Digital Marketing Agency

A strong partnership with a Digital Marketing Agency can be a source of competitive advantage to the company. You can expect the following benefits from taking services from a Digital Marketing Agency/company:

  • Client organizations can Focus on their core Business
  • Users can save costs by raising resources and capabilities in-house
  • The customer company gets the opportunity to work with Digital Marketing Experts
  • Users get industry relevance based on the proven work experience in Digital Marketing Agency
  • Multiple workable ideas for the selection of the best strategy
  • Flexible and Scalable Services
  • Measurable Results right from the First Campaign
  • CAPEX Savings on Digital Marketing software and tools etc…..

2 thoughts on “Online Marketing Business, What is a Digital Marketing Agency?”

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