We all use the Internet to find information, influencing our buying decisions. Different sources suggest that the average American spends between 4 and 5 hours daily on mobile phones.

The importance of digital marketing strategies for businesses is undeniable.

If you're interested in the benefits, costs, and how online channels can impact the growth of small businesses in particular...I have another article covering those topics.

This blog post will help you gain a broader perspective on why digital marketing is important nowadays. We'll talk about:

  • The Significant Changes in Consumer Behavior
  • The Value Digital Marketing Adds to Businesses
  • The Use of Traditional Marketing in the Digital Era

I'm Evan, founder of Ernst Media. This article contains information based on my 20 years of experience as a digital marketer and facts and stats from authoritative sources.

1. Your Target Audience Spend Time and Money Online

In today's digital age, your potential customers are constantly connected to the internet...Scrolling through social media, shopping for the latest trends, or searching for information.

visualization of the impact of digital marketing on consumer behavior

Many would think that these changes in consumer behavior led to businesses' use of digital marketing channels...Others say it's the other way around.

A recent case study by ResearchGate states the following:

"Digital marketing has a significant impact on customer buying behavior, influenced by factors like education level, income, and social media usage."

And here is my take...

How Digital Marketing Affects Consumer Behavior?

Over the last decade, digital marketing has fundamentally changed the way consumers interact with brands. People expect personalized experiences and want to feel understood and valued.

In my opinion, the wealth of information on the web has the biggest impact.

Folks research solutions, products, and services online. They read reviews and compare prices before making a purchase decision...I'm sure you also do your due diligence.

Let me tell you what that means for you as a business owner.

First, digital marketing is important for reaching your target audience wherever they spend time...I'm talking about social media marketing.

Second, part of your digital marketing efforts must focus on educational content and SEO...That's how people will find your brand when using search engines.

And if you aren't on Page 1, they won't...As digital marketers like to say:

"The best place to hide pieces of evidence is Page 2 of Google"

2. Your Competitors Use Digital Marketing Strategies

statistics showing the percentage of marketing budgets used for digital channels

In today's competitive market, having the best product or service doesn't mean much without online visibility. This is often the main reason small business owners outsource digital marketing.

They have great offerings, but people choose their competitors because they're present on various digital platforms. It's a common problem...Walden University listed ineffective web presence as one of the top 5 challenges of small businesses.

But what can an effective digital marketing strategy do for your business?

How Digital Marketing is Adding Value to Businesses

By running different digital marketing campaigns focused on the different funnel stages...You can achieve short-term business goals, increase brand awareness, and understand your target audiences.

Here is what I mean:

PPC advertising helps you reach people who need solutions right now and are ready to pay for your offerings. That's a quick way to increase cash flow.

With search engine optimization and content marketing, you appear in front of prospects looking for information. This is how you build credibility.

Being active on social media platforms allows you to interact with people and provides valuable audience insights. You get to know your target customers.

These are just a few basic examples of how digital marketing helps businesses. For more details, check out my blog post on the best types of digital marketing for SMBs.

You don't need multiple campaigns and a 5-figure budget to get started. In fact, some of our clients at Ernst Media spend less than $5K per month and see great results.

3. Traditional Marketing Methods Aren't As Effective

statistics showing the percentage of customer interactions generated with traditional advertising vs online marketing

Some old marketing methods still work. However, they're losing their impact while costs remain high. I don't remember buying anything after watching a TV ad for the last 5 years...Have you?

Then why pay a premium for an advert that doesn't offer a predictable outcome?

Another limitation is geography. Our boutique marketing agency is based in Spokane, WA, so if I advertise it in a newspaper, only locals will see it. Digital marketing makes it possible to reach a much wider audience and even work with businesses outside the US.

How is Digital Marketing Different from Traditional Methods?

To help you fully understand the effectiveness and importance of digital marketing, I'll do a quick comparison.

With Traditional Advertising Methods:

  • You can reach a larger audience but without precise targeting
  • You have to make a big investment in production & placements
  • You can't measure the results and returns on your investment
  • You rely on one-way communication with potential customers
  • You can't make data-driven decisions for your future campaigns

With a Digital Marketing Campaign:

  • You can target specific interests, behaviors, and demographics.
  • You don't need a big budget for social media ads or Google Ads
  • You can easily measure ad performance and return on ad spend
  • You can maintain two-way interactions to build customer loyalty
  • You have KPIs to help you optimize and achieve better outcomes

Why is Digital Marketing Important for Success (Facts & Stats)

Digital marketing is a vital component of modern businesses. It offers more precise targeting, better customer engagement, and a higher ROI.

And when done right...It's cost-effective. You can see what our clients say about it.

The variety of digital marketing tools will help align your brand message with customer behavior. Publishing high-quality content is how you'll gain a competitive advantage.

All it takes is a reasonable budget, a successful strategy, proper execution, and avoiding common digital marketing mistakes.

I'm not a big fan of Bill Gates, but his famous quote is on point:

"If your business isn't on the Internet, then your business will be out of business"

I'll wrap this up with key stats from FitSmallBusiness showing why digital marketing is important nowadays:

  • Search engines are consumers’ number one source of brand discovery
  • 43% of the population goes online mainly for brand and product research
  • 90% of consumers research on social media when making purchase decisions

Do you need help getting started with online marketing?

I'm available for free consultations 5 days a week!

work with a boutique digital marketing agency to grow your business