What is Digital Marketing? Types, Benefits, How It Works, and More

In a world where everyone seems glued to their phones and laptops, have you ever wondered how brands manage to capture your attention? That’s the magic of digital marketing! Using tools like social media and email, businesses can connect with you, turning you from a casual visitor into a loyal follower.

If you're a student looking to understand the basics of digital marketing or explore it as a career, you're in the right place!  

This guide will help you to know the basics of digital marketing, its importance in today’s world, the various strategies you can explore, and actionable steps to start your career in this growing field.

Before you get into the details, see why digital marketing is such a big deal and why it’s a smart choice for you to learn.

Why Does Digital Marketing Matter? 

With competition at every turn, digital marketing has become a valuable resource. Don't believe us? Here are some ways digital marketing supports marketers. Take a look. 

• Connects with potential customers across social media, search engines, and email platforms.
• Gives precise results by tracking performance to understand what works and where to improve.
• It is more affordable than traditional methods, making it suitable for businesses of all sizes.

Moreover, digital marketing is a highly sought-after field. Companies such as Google and Amazon actively seek professionals with basic knowledge of digital marketing for internships and jobs. 

Now that you understand why digital marketing matters, let's help you explore what it is in detail.

What is Digital Marketing?

Digital marketing is the art and science of promoting products or services through various online channels. Think of it as the bridge between a business’s offerings and the people it wants to reach, using online platforms and digital tools to connect with the audience effectively.

Difference Between Digital Marketing and Traditional Marketing

Imagine scrolling through an Instagram feed and seeing an ad for the latest smartphone. That’s digital marketing. Now, picture a massive billboard on the road advertising the same phone. This comparison highlights how brands use different methods to reach their audience.

Here’s how they differ.

Importance of Digital Marketing

Digital marketing is a necessity in 2024. Without properly marketing a product or service digitally, the chance of the product reaching the right audience is negligible. But that's not the only reason why digital marketing is essential. 

Other noteworthy reasons are listed below. 

• Digital Marketing is Cost-Effective:

  It helps achieve more with lower expenses, making it a viable choice for everyone.

• Digital Marketing Allows Targeted Marketing:

  Audience segmentation helps the message reach the right people.

Additionally, understanding digital marketing can open up new career opportunities for you. It equips you with valuable skills that are in high demand. If you are seeking a starting point, consider exploring online courses in digital marketing to set you on the right path.

Still, trying to figure out where to start? Check out UpGrad’s free Digital Marketing Course to familiarize yourself with the basics.

How Does Digital Marketing Work? 

Getting a clear idea of ‘What is digital marketing?’ is essential as you explore its broader role in your journey as an aspiring digital marketer.

Digital marketing helps guide potential customers through the marketing funnel, assisting them in moving from their first encounter with a brand to making a purchase and building a lasting relationship.

Here’s a simple breakdown of how Digital Marketing Funnel works.

• Awareness:

  You first discover a brand through social media, search engines, or online ads.

• Interest:

  Once intrigued, you visit the website or engage on social media, like researching colleges, before deciding.

• Consideration:

  You compare products to competitors and read reviews, similar to weighing your options for study materials before enrolling.

• Conversion:

  You become a customer by purchasing or signing up.

• Loyalty:

  It’s all about building solid relationships. Keeping customers happy encourages them to return.

Role of Audience Targeting 

In digital marketing, knowing the audience is everything! By analyzing data, brands can tailor their marketing efforts to speak directly to their audience’s needs and interests.

Here’s why it matters.

• Relevance:

  Targeted messages connect with people likely to be interested in what brands offer.

• Efficiency:

  Targeting specific groups helps to use resources effectively, allowing the brands to reach the right people without wasting time.

Channels Involved in Digital Marketing 

Digital marketing utilizes various channels to engage with audiences. Here are the main ones you should know.

• Search Engine Optimization (SEO)
• Content Marketing
• Email Marketing
• Social Media Marketing
• Pay-Per-Click (PPC) Advertising
• Affiliate Marketing
• Mobile Marketing

KPIs in Digital Marketing 

When it comes to digital marketing, Key Performance Indicators (KPIs) serve as valuable tools. These simple metrics reveal how well marketing campaigns are performing. Tracking these numbers allows for identifying what works and what doesn’t, allowing for more intelligent decision-making.

Here are some crucial KPIs to watch as you explore digital marketing.

• Click-Through Rate (CTR):

  This measures the number of individuals who see a link and the proportion of people who click on it. 

• Conversion Rate:

  This shows the percentage of visitors who take a desired action, like signing up or purchasing.

• Social Media Traffic:

  This tracks the number of visitors from social media and helps to show how well posts drive engagement.

• Website Traffic:

  It counts the total number of visitors to the site over a period, giving insight into its popularity.

Importance of KPIs for Campaign Success

Here are some key reasons why KPIs are essential for success in digital marketing campaigns.

• Informed Decisions:

  Using data to make wise choices instead of guessing leads to better project outcomes.

• Goal Setting:

  Setting clear KPIs helps one stay organized and focused, allowing adjustments to strategies as digital marketing trends change.

Also Read: 7 Reasons Why You Should Study Digital Marketing in 2024

Types of Digital Marketing 

Knowing digital marketing and KPIs leads to curiosity about "what is online marketing" and how it connects with audiences. Consider online marketing a vital tool in the digital marketing toolbox, specifically designed to promote products and services through various digital channels, effectively reaching potential customers.

Digital marketing encompasses various types, catering to different customer journey stages. 

Below is a quick overview of the main types of digital and online marketing tools to help you choose the best options for specific needs.

Search Engine Optimization (SEO) 

Search Engine Optimization (SEO) is an online marketing tool that helps a website stand out in search rankings so that people can easily find it.

Here’s how you can make the most use of SEO.

• On-Page SEO:

  Adjust title tags, meta descriptions, and content to appeal to search engines and visitors.

• Off-Page SEO:

  Build credibility and improve rankings through links from reputable websites.

• Technical SEO:

  Ensure smooth performance with updates like faster load times and mobile-friendliness, inviting search engines to explore more effectively.

Want to learn the basics of SEO? Check out UpGrad’s free 6-hour course on ‘Basics of Search Engine Optimization’. 

Content Marketing 

Content marketing allows businesses to share stories and insights that engage the audience, creating value and building trust. Explore these engaging content formats that you can try.

• Blogs:

  Share expertise and answer questions in a unique voice.

• Videos:

  Create engaging videos that tell a brand's story and connect with people on social media.

• Infographics:

  Use eye-catching visuals to break down complex information, making it easy to understand.

Also Read: How to become an HR Specialist in 2025?

Email Marketing 

Email marketing offers a way to connect with the target audience for communication and relationship building, making it an effective online marketing tool.

Consider trying these effective strategies.

• Product Recommendations:

  Personalize the emails with suggestions based on individual interests or past interactions.

• Re-engagement Campaigns:

  Reach out to inactive subscribers with special offers or updates to increase their interest.

• Newsletter Updates:

  Share regular updates, promotions, and valuable content to keep the audience engaged.

Social Media Marketing 

Social media marketing is a creative playground, allowing you to express a brand's personality. 

Check out some fun engagement ideas for you to try.

• Interactive Posts:

  Use polls, questions, and quizzes to encourage conversations and connections.

• User-Generated Content:

  Encourage followers to create content related to the brand, building a community, and showcasing offerings.

• Contests and Giveaways:

  Organize exciting contests to reward followers and increase engagement.

 Pay-Per-Click (PPC) Advertising

PPC advertising is similar to having a front-row seat in digital marketing. To get started, first, understand how PPC works. You bid on relevant keywords and make sure that ads appear when users search for those keywords, effectively driving targeted traffic to the site.

Here are some examples of PPC platforms to explore.

• Google Ads:

  Connect with users who are actively searching for products or services.

• Facebook Ads:

  Target specific audiences and interests on one of the largest social media platforms.

• LinkedIn Ads:

  Connect with professionals and businesses through targeted advertising.

Affiliate Marketing 

Affiliate marketing revolves around collaboration, enabling an expanded reach through partnerships with others who promote products or services.

To help get started, here are some popular affiliate programs to consider.

• Amazon Associates:

  Share Amazon products and earn commissions on sales through links, tapping into a massive engagement.

• ShareASale:

  Connect with various brands to showcase a wide range of products and services, providing plenty of promotion options.

• ClickBank:

  Specialize in digital products and earn commissions on sales generated through links.

Also Read: Top 10 Key Reasons to Become an Affiliate Marketer in 2024

Mobile Marketing 

Mobile marketing targets users on their devices, making it essential for engagement, mainly as most people rely on their phones.

To strengthen these efforts, here are some effective mobile marketing strategies to utilize:

• Push Notifications:

  Send alerts about promotions or updates directly to users’ devices to keep them informed.

• In-App Advertising:

  Place ads within mobile apps to reach users while they enjoy their favorite content.

• SMS Marketing:

  Use text messages to share exclusive offers and updates in a concise and engaging format.

Benefits of Digital Marketing 

Are you curious about what makes digital marketing a game-changer for aspiring marketers? With its ability to connect with a global audience and engage consumers in real time, digital marketing offers unique advantages that traditional methods simply cannot match.

Check out the standout benefits that highlight why digital marketing is essential.

Broad Geographical Reach 

Digital marketing makes it easy to resonate with people from all over the world. With the internet, potential customers can be reached everywhere.

• 24/7 Availability:

  Marketing efforts work around the clock, reaching potential customers anytime.

• Local Targeting:

  Fine-tune strategies to attract local audiences through targeted campaigns.

Low Cost of Entry 

Digital marketing is an easy way to advertise services, making it accessible to everyone.

• Cost-Effective Advertising:

  Use tools like Google Ads and social media for maximum reach while managing spending.

• Organic Growth:

  Attract visitors through quality content and SEO practices without relying solely on paid ads.

Quantifiable Results / Measurable ROI 

One of digital marketing's most significant advantages is tracking and analyzing results in real time.

• Analytics Tools:

  Use tools like Google Analytics to monitor traffic, engagement, and conversions.

• Performance Tracking:

  Quickly assess which strategies are practical and which need improvement.

• Clear ROI:

  Analyze return on investment with measurable data that guides decisions.

Easier Personalization 

Digital marketing allows for a structured approach, helping to connect with audiences personally in different ways, as listed below.

• Through Personalized Content:

  Create messages and offers that resonate with individual customers.

• Through Dynamic Ads:

  Use retargeting strategies to show ads based on the user's previous interactions with content.

Builds Connections with Customers 

Learning digital marketing enables to build relationships beyond transactions, and promote a community around brands.

• Engagement Opportunities:

  Interact with the audience through social media, comments, and reviews.

• Community Building:

  Build loyalty by staying in touch regularly and sharing content that brings real value to the audience.

Results in Conversions 

Ultimately, digital marketing drives conversions, turning prospects into loyal customers. Here’s how conversions happen. 

• Through Effective CTAs:

  Use strong calls to action to guide users toward the next steps.

• Through A/B Testing:

  Experiment with different strategies to discover what resonates with the audience and increase conversions.

Inbound Marketing vs Digital Marketing 

Inbound marketing attracts customers through valuable, relevant content that meets their needs. Instead of pushing ads, it pulls people in with helpful resources like blogs, SEO, and social media.

Inbound and digital marketing share the same goal, connecting with audiences and driving conversions. Both strategies use online platforms and focus on creating relevant, engaging content that creates a positive experience and encourages brand loyalty.

Here are the main differences between inbound marketing and digital marketing.

Convinced that digital marketing could be your future too? Check out UpGrad’s Advanced Certificate in Digital Marketing and Communication from MICA. 

B2B Versus B2C Digital Marketing

When you understand the differences between B2B and B2C digital marketing strategies, you can adjust approaches, see better results, and provide real value in a competitive space.

B2B Marketing Strategies

B2B marketing focuses on connecting with decision-makers and creating lasting value. To reach them effectively, it uses content marketing, LinkedIn and email updates, along with SEO and PPC strategies that feature industry-specific keywords.

B2C Marketing Strategies

B2C marketing, on the other hand, uses original content to engage customers. Building relationships is made easier by using apps like Instagram and TikTok, while collaborating with influencers adds trust. Offering exclusive discounts through email and remarketing campaigns can also boost engagement.

Here are some key differences between B2B and B2C digital marketing that can help you gain a clearer understanding of each approach.

Skills You Need to Become a Successful Digital Marketer

As digital marketing expands, job opportunities are expected to increase by 6% by 2032. To thrive in this field, it is essential to cultivate a mix of creativity, analytical skills, digital knowledge, and informed decision-making. 

Consider focusing on these essential digital marketing skills.

• Communication and Planning:

  Write clear messages and campaigns that match goals to connect better.

• Data Analysis:

  Learn to analyze data to understand how engagement varies, allowing for adjustments to campaigns when necessary.

• Digital Tools:

  Get to know essential tools for SEO, social media, content creation, and analytics to improve marketing reach and effectiveness

Adapting to Trends and Technologies in Digital Marketing 

Digital marketing is always changing, influenced by new technologies and shifting consumer habits. For those looking to work in digital marketing, staying up to date with the latest trends is important for creating campaigns that make a real impact.

Keeping up with trends helps create content that speaks to the audience and builds genuine connections. Regularly updating strategies can improve visibility and strengthen relationships with customers.

As more people use their smartphones for browsing and shopping, focusing on mobile optimization becomes vital. This approach enhances user experience and encourages more interaction.

Here are some simple ways to adapt to new technologies.

• Using chatbots for quick customer support.
• Implementing augmented reality (AR) for interactive experiences
• Optimizing for voice search.
• Using stories and live streams allows for instant interactions, making connections feel personal.

Educational Opportunities in Digital Marketing 

Digital marketing is constantly transforming, making it important to stay updated. Formal education offers a solid foundation in SEO, content marketing, and data analysis, equipping you with the necessary skills for success. 

Additionally, certifications improve resumes by offering practical skills that can be applied right away, connecting theory with real-world application.

If you’re someone who wants to learn more about ‘what is digital marketing’, try UpGrad. We provide a variety of courses for aspiring digital marketers and professionals who wants to switch careers. Our programs in digital marketing combine theory with hands-on practice, helping you to stay ahead in the unpredictable digital world.

Here are some advantages to formal education in digital marketing for you.

Conclusion 

Digital marketing is an exciting field that helps brands connect with the audience. By exploring different channels and strategies, it becomes easier to find what fits your goals, whether pursuing a degree or exploring new career options.

Looking to boost skills in this area? UpGrad offers a wide range of courses designed for aspiring digital marketers and those looking to switch careers. Plus, you can book a free career counseling session with experts to guide you along the way.

Gain in-demand digital marketing skills with our expert-led courses and stay ahead in the fast-evolving world of online marketing.

In-demand Digital Marketing Skills