While having a marketing budget is important for any small business, it’s equally important to spend it in the right direction and make the most of it.
How do you know where to spend it when it comes to digital marketing vs traditional marketing?
For many businesses, reaching the right “marketing” decision is not easy, even though it can make a huge difference in their results.
By gaining clarity on the digital marketing vs traditional marketing aspect.
A business can get a better idea of which marketing method is appropriate and how it is should be applied.
For instance, if you decide to use your social media account to build your brand, publish your marketing message, and increase your customer base…
…you could do it yourself or hire a reputed digital marketing firm like LYFE Marketing to take care of it.
Running a successful business is not just about choosing the appropriate market or offering a high-quality product.
You also need the right kind of marketing techniques for you to be able to reach out to your potential customers.
And then eventually, convert them into leads or customers.
Some businesses may give less preference to marketing, but if any serious business wants to increase profits…
…it will almost always have set aside a proper budget for marketing.
Even if you do acknowledge the need for effective marketing, the whole digital marketing vs traditional marketing debate might stump you.
The reason for this confusion may arise due to the fact that even though a lot of marketing is done in the traditional way.
Digital marketing is steadily gaining an edge.
Yes, there is a percentage of people who don’t use the Internet for conducting any transactions, especially the older audience.
However, a considerable chunk of the population is regularly using the Internet for multiple purposes, including making their day-to-day transactions.
As a business, you need to ensure that you are ahead of your competition.
This means you cannot just depend on outdated marketing methods anymore.
You need to look beyond and fully understand how you can leverage the latest digital marketing techniques to grow your reach.
Before we get into the nitty-gritty details of the key differences of digital marketing vs traditional marketing, let’s first define what traditional marketing is.
What is Traditional Marketing?
Traditional marketing is any marketing campaign that doesn’t involve digital platforms.
It has many facets including radio or TV commercials, magazine or newspaper ads, banner ads, posters, direct mail, and phone.
As well as outdoor advertising such as flyers, brochures, billboards, etc.
It is one of the oldest forms of marketing, hence the word “traditional”.
Traditional marketing is nothing new as it’s a form of marketing that we have been exposed to at one point or another, especially the older demographic.
It is a conventional mode of marketing for businesses looking for ways…
…to out to a semi-targeted audience with various offline advertising and promotional methods.
Traditional marketing is a type of marketing that is hard to ignore and includes the traditional media and ads we encounter on a daily basis.
Many of the common and most tried offline traditional methods come under the following five major categories:
- Print (magazines, newspapers, etc.)
- Broadcast (TV, radio advertisements, etc.)
- Direct Mail (catalogues, postcards, etc.)
- Telephone (cold calling, telemarketing, SMS marketing, etc.)
- Outdoor (billboards, flyers, etc.)
Traditional marketing may have evolved over the past few decades, but the fundamental aspects remain the same.
The selling techniques that we use today heavily rely on the infamous four P’s of marketing: product, price, place, and promotion.
Every successful business knows how integral it is to create a proper sales funnel.
By leveraging the four P’s of marketing, a business can actually lead its prospects and customers through any sales funnel and see favorable results.
Let’s take a brief look at each of the 4 P’s that power every form of marketing technique:
Product: Effective marketing starts with a good understanding of your own product.
Which could be an intangible service or type of good that fulfills the demand of a target market.
Price: The overall cost of the product depends on how well you know it.
Price is always the determining factor when it comes to things like supply, demand, profit margin, etc.
Promotion: How you get the word out about your product and market it to your target audience is promotion.
Any method that helps you promote the product and help it gain more visibility/exposure…
…comes under promotion — whether it is advertising on a billboard or setting up an ad campaign on Facebook.
Place: Traditional marketing heavily relies on getting your product in front of your target audience at the right time and place.
Which also means pricing it right. In the marketing world, placement plays a crucial role.
Because when a product is placed in an ideal location, the chances of converting prospects to customers or clients increase manifold.
On the surface, digital marketing may look different than traditional marketing in a big way as it is all about the fourth P: promotion.
However, the fact of the matter is, that digital marketing is highly effective because it does not ignore any of the four Ps of marketing.
It rather uses each one of them in a unique manner, and sometimes even better than traditional marketing.
Downsides of Going Traditional
On the flip side, while traditional marketing is still effective, it’s not the only way to make your product popular among your target market.
In today’s world, technology has grown and is enabling businesses to achieve global reach and connect to their audience like never before…
…especially for those businesses with a younger audience.
This is why it’s important to consider the drawbacks of traditional marketing vs digital marketing before investing in it.
- Little Customer Engagement
One of the biggest and the most obvious limitations of traditional marketing is that there is little or no interaction between the customers…
…and the medium used for marketing communication.
Traditional marketing is a one-way street where a business is able to broadcast or provide information to its target audience about its company’s products.
This brand-building exercise is done in the hope to attract the attention of the right people and maybe convert them into customers.
- No Control Over Timing
Traditional marketing is dependent on promotional methods that once executed cannot be updated.
Whether it is a static text print ad in your local newspaper or radio commercials…
…you will have to place a new ad to replace the old one in case of any change.
While this may not seem like a huge factor, especially for larger businesses, it does make a big difference in the long run.
For instance, let’s say you run a magazine ad promoting your latest widget.
After which, you make a major update to it that can make a significant impact on the sales numbers. Can you change the ad on the fly?
Of course not, which can put a huge dent in your marketing budget over time.
- Higher Costs
The recurring costs in traditional marketing can prove to be a huge investment that may or may not give a good return.
Your ad in the local newspaper will only be effective if it is seen by your target audience on the day it gets published.
And what are your chances of that?
If you want to reach out to them again, you need to create and run a new print ad campaign.
Or when you create and distribute posters or fliers in your area, it’s an investment you are making for a one-time exposure.
Compare that to content creation on your brand’s website that can bring in target visitors for years to come at no additional cost.
- Limited Customization Options
Do you want to target customers working in a certain industry and fall into a particular age group?
Traditional marketing offers you little help when it comes to customizing your campaign and targeting a specific customer.
Even though you can use traditional marketing techniques to market to certain segments, you cannot go after targeted customers.
For instance, when you’re using Google ads, you have the option to not only reach out to the right kind of customers…
…but also show them offers that are tailored towards them.
- Cannot Be Easily Updated
Let’s face it, one of the strengths of digital marketing is the fact that it can easily be updated and adjusted.
Unlike in traditional marketing wherein, it takes a lot of effort to tweak.
Imagine your print ads having the wrong percentage discount or you forgot to mention the image source, how can you correct that if the prints are already out?
On the other hand, editing a digital marketing campaign or updating digital media is just a few clicks away.
- Inability to Disclose Full Pricing Details
At the basic level, traditional marketing has never failed to attract people based on discounted prices or special sales.
However, when it comes down to offering more unique, customized pricing options, you may hit a brick wall.
If you analyze the options given to you in print marketing…
…you may not find the needed space to display all your pricing options – even though these can help you convert more people into customers.
- Poor Campaign Measurement
When executing a traditional marketing strategy, it is essential to know how effective it is to ensure you’re not investing in the wrong direction.
Unfortunately, for many years, the results that you get from traditional marketing cannot be measured easily and efficiently.
However, when you launch an online marketing campaign, you can effortlessly identify where you are going wrong and if it is successful or not.
This alone makes digital marketing much better than its traditional counterpart.
Now moving on to our digital marketing vs traditional marketing comparison, let’s define what digital marketing really is.
What is Digital Marketing?
Digital marketing is any marketing campaign that is done online.
It includes promoting your business on various digital spaces including social media platforms, search engines, emails, and other websites.
Brands around the globe use a variety of content to reach and engage their audience through digital marketing.
Their content strategy includes social media posts, videos, email marketing campaigns, PPC ads, blogs, etc…
…to unlock the key to reaching more people and connecting with them.
Any business, regardless of its size, can leverage digital marketing to reach out to its target market.
Connect with your audience and convert more of them into customers/clients.
- search engine optimization,
- Facebook marketing,
- search engine marketing,
- social media marketing.
- email marketing,
- affiliate marketing,
- influencer marketing, and
- Pay-Per-Click advertising…
…they all come under digital marketing.
And we offer an array of digital marketing services here at LYFE. Feel free to check them out and see which ones might be best for your business.
The reason why digital marketing is crucial for a business today is because the Internet is becoming one of the most used tools.
There is an increasing number of people who are logging on the web to carry out their day-to-day activities, which include purchasing goods and services.
If you look at the past decade, you’ll see that online marketing has grown pretty much exponentially.
So when it comes to digital marketing vs traditional marketing, it’s clear that digital has a definite edge.
Successful marketing requires a business to connect to internet users in the best possible way.
So that there is an actual return on the investment.
Given the fact that a large majority of people (especially the Millenials and Gen Z) are spending their time on the Internet…
…it makes sense for you, as a business, to connect to them on it.
As technology grows and new digital ideas are brought to life, the digital marketing world grows with it.
One of the reasons why it continues to deliver results is because it is a form of inbound marketing.
This means, that instead of you going out there to find people, they find you.
Whether it is running an advertisement on Google or creating marketing-related content for your blog.
It’s all about attracting your target audience and spreading awareness.
The idea is to get out there and gain exposure.
Because the more people know about your website, your brand, and the products you sell, the more familiar they become with your agenda.
Which eventually leads to close relationships or bonding that is developed on the basis of trust.
Being a business, the Internet offers you a way to build authority in your niche and grow your online presence like never before.
Digital Marketing vs Traditional Marketing: What Do the Stats Say?
Keeping the current growth of digital marketing in mind…
…particularly in the U.S., it won’t be long before digital ad spend takes over traditional advertising such as television ads.
As of today, 60% of successful marketers across various industries have already shifted their efforts toward digital marketing.
Here are some more stats to help you understand the growth and prominence of digital marketing…
- More than 80% of shoppers/buyers do their research online before investing in a product/service.
- Almost 60% of U.S. adults use Facebook on a regular basis.
- 94% of B2B marketers are actively using LinkedIn for marketing.
- Mobile will be accounting for over 70% of digital ad spend by 2019.
- 90% of B2C businesses report social media as being the most effective content marketing tactic.
In every company, regardless of the industry you are in, you need to take the importance of digital marketing into consideration.
Or else you may lose out to competition that is taking advantage of the latest digital marketing techniques.
Now, truly understanding digital marketing trends and applying methods that are suitable for your business may not be your specialty.
It may take a considerable amount of time and investment to see favorable results.
In such a scenario, working with an expert marketing team life LYFE can help you get a high return on investment.
Where to Invest Between Digital Marketing vs Traditional Marketing?
Setting a marketing budget is one thing, but making sure you get a good return on your investment is something else.
This is why it makes sense to focus only on those marketing channels and methods that are more likely to give you the best bang for your buck.
The digital marketing vs traditional marketing debate is age-old, and it’s far from over.
However, given the advancement in the new technology, there is no denying the fact that digital marketing can help a business generate qualified leads/sales…
…without putting a dent in the wallet.
The risk is definitely smaller when compared to traditional marketing.
If you look around, you’ll find businesses of all sizes taking advantage of digital marketing.
Especially because of the much lower cost or barrier to entry when compared to offline marketing methods such as print advertising.
Even though people watching TV might see your commercials and can help in brand building…
…digital marketing can assist a company in building a strong foundation for effective promotion.
And it can be done with a much smaller budget.
Investing in Print Ads
There’s no doubt that print ads can work great if done properly.
However, without consistency, print advertising will fail to yield results.
Whether you choose to advertise in a major magazine or your local newspaper, you need to be ready to spend huge money over a long period of time.
Here’s what the results looked like when Blue Fountain Media decided to advertise with a major magazine.
Also, when it comes to print ads, what many businesses fail to understand is the circulation aspect.
The number of readers who actually see your ad will be less than the number of magazines in circulation.
Because a good percentage of magazine issues will almost always go unsold.
Investing in Digital Ads
Digital ads are more customizable than print ads, which makes them less risky.
For instance, if you are running a search campaign, you can target your ad to a certain audience and change it later on.
Although the issue of ad blockers has been around for a while, making adjustments and tweaking your ads according to real time data is simply easier.
Then comes the question of CPM, which can be pricey with magazine ads.
According to Gaebler, a full-page (black and white) ad costs close to $120k, for a CPM of $50 USD.
Compare this to a digital marketing channel such as Google Display Ads, where you are charged per click, rather than per impression.
This means CPM can in some cases cost you zero dollars.
So if you are a business with a limited budget and want to increase your chances of success, digital marketing works best for you.
Looking at the above example, Blue Fountain Media found a clear winner in digital advertising as the magazine ad proved to be costlier.
This just goes on to show that the level of customization and tracking you get with digital marketing is above part.
You have a lot more control over the ad’s performance and in-depth analytics to improve them along the way.
Why Choose Digital Marketing?
For some brands, especially the well-established ones with a huge offline audience, traditional marketing may be too expensive to ignore.
But for the many small businesses that are trying to make a mark on a tight budget, digital marketing can prove to be a savior.
This is why many new and old businesses are leveraging the power of digital marketing and rethinking the marketing funnel.
1. Higher Level of Consumer Interaction
Traditional marketing doesn’t allow direct interaction with customers, whereas digital marketing offers a higher level of engagement and interaction.
Whether it is through social media comments or email messages.
Your target audience is instantly connected with you through various digital marketing channels.
Your brand can also easily build better and long-lasting relationships with customers by interacting with them via video, surveys or webinars.
Your business performs better when it runs in conjunction with the requirements of your customers.
And digital marketing lets you do that as you can engage with customers and solve their issues/problems without wasting time.
2. Ease of Measuring Results
When you give away brochures, distribute fliers or advertise in magazines, you don’t know how far your marketing is going to be successful.
You may be headed in the wrong direction, but there’s no way to tell unless you’re bombarded with negative feedback.
Unlike traditional marketing, digital marketing lets you measure results. It allows you to play a clear-sighted marketing game, rather than a blind one.
You have access to a ton of information about your prospects and customers to help you understand where you are going.
Right from how many people are visiting/leaving your website to what percentage of them are converting.
Imagine the level of tweaking/testing you can do with digital marketing, which is literally absent in traditional marketing.
3. Bigger Audience Range
Traditional marketing is limited in many ways.
But one of the biggest restrictions that comes with it is the inability to go beyond a regional or local audience.
Your business may not be geographically-bound, so why limit your reach?
Using digital marketing, you can create a highly customized campaign and widen your reach to different cities or even different countries.
So say goodbye to the blanket approach that traditional marketing takes and say hello to digital marketing that lets you alter your campaign…
…based on how far you want to go.
4. Less Expensive & More Effective
When it comes to spending money on marketing, your return on investment decides whether your campaign was successful or not.
There’s no surprise that digital marketing fetches you a better ROI because it’s cheaper than traditional marketing/advertising in more than one way.
Would you rather invest in an advertisement where you pay based on performance or in a costly newspaper ad that is seen by a limited audience?
Digital marketing allows you to spend less while gaining more. For many businesses, it’s a no-brainer.
If you want to learn more about digital marketing, be sure to check out our Recent Posts.
Work Together: Digital Marketing vs Traditional Marketing
We would hope we’ve convinced you with data and facts that digital marketing is definitely the way to advertise as a small business.
If you’ve already tried traditional marketing before and haven’t seen the rapid growth results you wanted, then give digital marketing a shot.
There is little risk and great reward. That’s not a combo you see often in the business world.
Our experts can even take off a little of the pressure.
They do all the work for you. All you have to do is stay informed and approve the material.
At LYFE Marketing, we take the worry out of your online advertising and digital marketing which allows you to focus on other areas of business…
…that need your undivided attention.
Contact us today to start your digital marketing campaign. It’s that simple.