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Importance of Digital Marketing for the Success of a Business

Last updated on Jan 27,2024 2.3K Views

Any business’s focus is getting as many customers and clients in through the gate as possible. Marketing owns the key to drawing them and creating leads. In the forthcoming years, businesses will continue to opt for traditional methods of advertisement, such as advertising on television or billboards. But many smart businesses will begin relying solely on digital marketing. And the logic for this is pretty simple. We have entered the age of digitisation due to the Covid-19 pandemic. This has also pushed businesses to transition to the digital model to compete and survive in the market. This instantaneous switch has made them realise that switching to digital marketing is cost-effective and productive. The importance of digital marketing for the success of a business lies in the fact that it offers numerous innovative solutions. Because of this, companies will continue to capitalise on this type of marketing for the years to come. Digital marketing resonates with the young generation, which comprises most of a company’s customer/client base. But before we delve into the importance of digital marketing, let us first understand a little about what digital marketing is.

Digital Marketing

Marketing is all about communicating and connecting with consumers in the right place and at the right time. A few years ago, when there were no smartphones or the internet, information used to be communicated through newspapers, radio, television and word of mouth. These mediums also used to be the most favoured ones in the field of marketing. Regardless, in today’s time, the internet has become the main medium through which businesses and customers are in contact with each other.

Now, what exactly is digital marketing? Digital marketing simply refers to the usage of electronic devices and the internet to connect with consumers globally. It uses digital modes of communication, such as smartphones, laptops, desktops, and tablets, to promote a brand’s message and vision. Digital marketing uses a company’s products to spread its brand message and promote and calculate the brand’s impact among consumers. For details, You can even check various concepts related to SEO, Search Engine Marketing, Email Marketing, Affiliate Marketing, Social Media Marketing, and Google Analytics with the Digital marketing certification course.

Generally, it deals with marketing campaigns on smartphones, tablets, laptops, desktops, or other devices. This contains search engine marketing on Google, video advertisement through mediums like YouTube, image and social media advertisement through Instagram and Facebook, content marketing on various platforms and channels, paid advertising campaigns, and many such modes of digital marketing.

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Now that we know what digital marketing does and all the mediums it employs, let us explore how it helps businesses in effective marketing. You can also enrol in our Advanced Executive Certificate in Digital Business Management to upskill yourself in this field to help businesses achieve their marketing targets.

Importance of Digital Marketing for the Success of a Business

Knowing how companies can profit by adopting digital marketing strategies in this digital age is necessary. In this part of the blog, we are going to discuss the importance of digital marketing in the success of a business.

Importance of Digital Marketing

  • Better Reach

These days, almost everyone across the globe is spending time online. They are browsing through the internet and searching for the best products. Maximising the company’s online presence is crucial to benefit from this enormous audience base. This is where digital marketing plays a very vital role. Digital marketing is about connecting with the correct people at the right time. Therefore, to begin with, any company must have an attractive online store with effortless navigation to improve audience reach. 

In this method, different mediums within digital marketing can ultimately assist in brand building – Search Engine Optimisation, Social Media Marketing, Pay Per Click Marketing, Content Marketing, and much more.

  • Can Compete with Large Enterprises

Analysing the competition is a critical action in digital marketing. The action is necessary to keep up with competitors, particularly among fast-growing labels such as Amazon, Myntra, Big Basket, and Flipkart. Companies also try to force the envelope with multichannel marketing mediums, which include SEO, PPC, social media, and several other mediums. Digital marketing helps both small and large enterprises to attain their respective objectives, levelling the field.

  • Increasing Brand Awareness for Small Businesses

Digital marketing is a godsend for businesses. Large enterprises use digital marketing to maintain their stand in the competitive market and environment. On the other hand, small companies use online marketing to make advancement into a thriving market and build brand awareness amongst large enterprises.

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  • Improve in Sales

One of the fundamental elements, when we talk about the importance of digital marketing, is that one can calculate their Conversion Rate Optimisation (CRO) in real-time. The data can help to understand the total percentage of searches that get transformed into leads by buying products. Social media marketing, PPC, SEO services, and affiliate marketing are a few of the active mediums to communicate and get high conversions.

Also Read: What is Digital Business? An Introduction

  • Return on Investment

If a company wants to know the significance of digital media, all they have to do is look at the measurement metrics of profit and loss it uses for the business. In digital marketing, the return on investment represents the value of a company’s marketing campaigns. For instance, when compared with other channels like content marketing, e-mail marketing, social media campaigns and PPC, SEO has been understood to yield a higher return on investment. From fundamental metrics such as bounce rate and sessions, the organic traffic caused by the SEO shows forty per cent more revenue growth than any other marketing strategy.

  • Upholding The Brand Reputation


Creating a powerful brand reputation in the online business has become crucial as the brand’s reputation cements its capability to survive in the market. Digital marketing helps in creating easy marketing campaigns for the product, keeping the trends in mind, and also helps in showing a company’s support for important causes.

  • The Customers are Online

The internet has evolved into a basic necessity of daily life, with more than 4.66 billion internet users worldwide. The consumers of a company, including the targeted consumers and competitors, are all available online. They are seeking businesses like yours. When they are unable to find you, the possibilities are that they will instead see your competitors. You jeopardise losing your consumers if you do not hold an online presence and exposure.

Your online business will feel the importance of digital marketing when it demands the proper kind of visibility and exposure to create leads and increase sales. When your consumers do not locate you online, likely, they might not value your services and products.

  • Can Target Ideal Customers

Imagine how beneficial such an opportunity will be where you can easily reach out to your target audience. That is precisely what digital marketing aims to achieve. A company can analyse the behaviour of its audience online and take steps to provide optimal fulfilment. When the company reaches the right audience group, they drive more traffic, and that results in more profitable campaigns.

  • Get a Lead on the Competitors

The digital market is extremely competitive when it comes to online business, in particular. Therefore, any company would want their potential consumers to find them with the best reviews and other efforts initiated by different digital marketing services. These measures can help the company and their customers to work towards the right business objectives in the end. 

  • Engagement with Mobile Consumers

We are engrossing ourselves in a portable world, as in the present times, everyone carries their gadgets, like laptops and smartphones, on the go. After the mobile-first update of Google, nearly all the websites are designed in a manner that they are readily accessible on smartphones as well. Smartphone users are more standard now than ever before, and the probabilities are that these smartphone users are likely to buy the products and services.

  • Take Your Business on an International Platform

The importance of digital marketing for the success of a business plays a huge role since it has the power to take a business overseas. With the assistance of digital marketing services, any business can now connect with international consumers and work with them to grow their business worldwide. The scope of digital marketing keeps on developing with amazing flexibility and competitive technologies.

  • Digital Marketing Methods are Faster and more Cost-effective

For every company, being cost-effective is one of the most crucial prerogatives. Unlike traditional modes of marketing, digital marketing is highly cost-effective. Besides, small businesses feel the importance of digital marketing as it brings rapid results at a considerably limited budget. Furthermore, digital marketing also can communicate with a wider audience, irrespective of location. 

A business can also target a broader target market by designing numerous marketing strategies that simultaneously cater to distinctive customer groups. Driving a digital marketing campaign employs a remarkably lesser budget while providing a higher return on investment. Combining traditional methods and digital marketing solutions is always reasonable to create an optimum marketing strategy for business.

  • Helps in Tracking & Taking Appropriate Actions

One of the most familiar problems that the market encounters is finding ways to track and calculate the success rate of different digital marketing channels. But there are tools available online such as Google Analytics, Google Search Console, Ads manager, and many more, that drag in the data and help measure the execution of search engine campaigns among diverse audiences. 

Also, various tools assist in defining measurable metrics to help track performance and take the required steps. Notable examples of such tools are Ahrefs, Screaming Frog, and SEMrush. These tools assist in analysing the activities of competitors as well as supply data that enables businesses to make more informed judgments.

Also Read: What is Digital Leadership? Why is it important?

  • Affordability

A digital marketing approach is considerably less costly than offline marketing. The latter consists of spending money on newspaper ads, hoardings, and the hiring of a sizable marketing team. But, in digital marketing, the company will only require to invest in a few digital marketing tools that come with yearly subscriptions. There are multiple free tools that people with small businesses can use to get quality leads and increase sales. 

  • Improved Customer Relationship

An assortment of strategies is employed in digital marketing. Conducting podcasts, content creation, webinars, etc., are all critical for handling the pain points of the consumers and building relationships with them. Another marketing strategy is incorporating chatbots into the website. It is a technique that makes any website user-friendly and effortless to navigate. It further assists the company in reaching out to consumers who visit their site but leave without completing a purchase. 

  • Competitors are Using it

If you have any doubts about the importance of digital marketing in the success of a business, then do remember that your competitors are already doing it and obtaining profitable results. You will readily find numerous of your peers who have built a well-designed website, appropriate social media channels, and much more. Your competitors have already started to create evergreen content and sell it in organic ways. The importance of digital marketing also remains because it helps increase any business’s reach and acquire new opportunities. Digital marketing is essential.


The importance of digital marketing for the success of a business can not be easily ignored because of its psychological impact on consumers. Compared to any other form of marketing, this method enables any company employing it to have an edge over its competitors. 

This facilitates the communication between the sellers and the buyers for a better knowledge of products as well as the preferences of consumers. This creates a powerful rapport within the seller-buyer community. Several budding technologies like AI can be integrated into digital marketing, which further liberates this marketing branch of industry.

Our Advanced Executive Certificate in Digital Business Management will help you learn about digital management’s aspects, like marketing, finance and human resources. With live classes and practical and hands-on exposure, get ready to dominate the field of digital marketing with this course. 

If you wish to enroll for a complete course on digital marketing, Edureka has a specially curated Online Digital Marketing Course, which will help you gain expertise in various digital media aspects like Keyword Planning, SEO, Social Media Marketing, Search Engine Marketing, Email Marketing, Affiliate Marketing, and Google Analytics. 


More Information:

Using Digital Business Management For Better Profitability

Traditional vs Digital Marketing: Key Differences and Similarities

What Is The Digital Economy?

What are Digital Financial Services? Explained

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Importance of Digital Marketing for the Success of a Business