To go Traditional or Digital becomes a point of confusion for small and medium businesses. With a scarce marketing budget, it becomes difficult for every small and medium business to divide it between traditional and digital. At the end, most businesses go with traditional marketing because of lack of availability of right tools to measure ROI of digital.
Selecting the right marketing mix is not an easy task. A person has to answer so many questions like: Which channel will give me the best ROI? How will I know if it is working or not? Should I do it myself or outsource it? The answers to these questions are more confusing than the questions itself.
Traditional marketing has its own advantages and most business owners know it. They have used it and they know what the outcomes will be. Shifting from Traditional to Digital is a big task. This not only involves creating and measuring campaigns in a different way but changing the whole mindset. People know that the whole world is on mobile now and they spend on an average 4 hours a day on it, still they will stick to billboards.
There are so many reasons for a Small and Medium business to move to digital. I will list down a few.
1. Geographical expansion
Expanding to a new geographical area with the help of traditional marketing is a nerve wrecking task. Digital marketing will help you expand to new areas without any geographical hurdles. Just enter the city you like or select a radius in a particular city. You are flexible with your reach and type of audience. The campaigns can be set up in no time and you are good to go.
2. Cost Effective
Small and medium businesses don’t have a big amount to spend on marketing. Still, the objective is to reach maximum people with the lowest possible cost. A one-time TV ad can of 30 seconds cost a business more than 3,50,000 Rs. if shown at a normal time during the day. A small business doesn’t have that amount of money. Even the print ads and billboards cost a lot. While on the other hand, Digital ads can reach a super-targeted audience at a lower cost.
40% businesses claimed that they are getting considerable savings by using Digital Marketing methods of promotion for their products and services.
With Digital, you can spend as much as you want and you are in full control of your budget. Businesses spending on digital marketing get better Cost Per Lead (CPL) compared to other marketing channels.
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3. Measurable analytics
Apart from cost effectiveness, this is the best advantage of Digital marketing. You can actually see which channel gave you what amount of sales, unlike traditional marketing. Traditional marketing is sometimes shooting in the dark if you don’t measure which channel is giving you the best ROI.
Digital marketing helps to measure every click and helps in identifying user behavior and buying patterns. It also helps to give detail insights about your target audience so that you can make super targeted ads. The amount of data which you can gather with the help of Digital Marketing is invaluable.
4. Higher revenue
Digital marketing helps to generate higher revenue compared to traditional marketing channels. Small and medium enterprises using Digital Marketing techniques will have 3.3 times better chances of expanding their workforce and business.
According to Google, companies using digital marketing strategies have 2.8 times better revenue growth expectancy.
5. Super targeted audience
If you want to target a woman aged 24-26 who is interested in fashion jewellery, living in Mumbai and newly engaged, you can precisely target her. This is the beauty of Digital Marketing, you can precisely target the people you want.
Digital marketing facilitates, marketing in real time. It means that the offers and marketing message can be changed based on actions taken by people. A business can customize offers in real time and offer people exactly what they want. This will not only increase customer satisfaction but also bring additional revenue to the business.
Digital marketing brings a steady flow of targeted traffic of people who convert into leads and sales. With Traditional marketing, you cannot target your customers as precisely as digital marketing.