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 Table of Content

Sr.No Particulars Pg No

1 Introduction

2 Research Methodology

3 Literature Review

4 Data Analysis and

Interpretation

5 Conclusion

6 Reference

7 Appendix/Annexure

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 Chapter No 1Introduction

1.1 Background
(Kaplan, 2019) defines Artificial intelligence as a system's capability to accurately understand external input,
learn from it, and apply that knowledge to accomplish specific performance targets through adjustable
adaptation.

The field of marketing is widely recognised as having substantial potential for improvement, particularly
through the application of artificial intelligence (AI). According to Fagella (2019), the integration of AI into
marketing practices offers significant revenue opportunities and a high likelihood of success. A report by PwC
in 2017 predicted that investments in AI development would contribute to a 14% growth in global GDP by
2030. Moreover, Bughin et al. (2018) projected that by 2030, AI would generate approximately $13 trillion in
output, resulting in an annual increase of around 1.2% in the global GDP.

Based on a survey conducted in late 2020 among global marketers, findings revealed that 41% of respondents
experienced an improvement in revenue growth and overall performance by incorporating AI into their
marketing endeavours. Additionally, 38% of participants attributed the creation of personalized consumer
experiences to the utilization of AI in marketing (Gutman, 2021). The integration of artificial intelligence is
expected to play a significant role in tasks that were previously performed exclusively by humans, including
effective communication, conversational abilities, and displaying empathy. This trend is exemplified by the
existence of smart virtual assistants, and some companies have already started leveraging this technology in
their digital marketing efforts to unlock new opportunities (Faruk et al., 2021). Notably, AI has brought about
significant transformations in various sectors such as marketing, finance, healthcare, engineering, and education
over the past two decades (Huang & Rust, 2018; Rust, 2020). The increasing personalization of interactions
between consumers and businesses, facilitated by the abundance of data, has led to the introduction of
substantial digital effects. Consequently, organizations are heavily investing in machine learning to enhance
their marketing capabilities. BCC Research estimates a remarkable annual growth rate of 43.6%, with the
machine learning solutions market projected to reach 8.8 billion by 2022 (Information Technology Industry
Analysis & Market Research Report, 2022).

Technological advancements are enabling enterprises to produce massive quantities of goods and use digital
marketing to expand industries' opportunities to advertise and sell products to clients, digital marketing has the
potential to have a profound effect on individuals at a specific moment, in a specific location, and via a specific
channel (Ali & Manisha, 2020). Furthermore, Industrial advancements in digital marketing are the result of
merging big data and scientific studies on smart applications (Ali & Manisha, 2020).

AI has an important role in digital marketing and will facilitate the creation of new business opportunities
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(Kolbjrnsrud et al., 2016). It is essential that businesses incorporate AI into their marketing strategies if they
hope to remain competitive (Pradeep et al., 2019). This thesis investigates the practical applications of
Automation and artificial intelligence in marketing, particularly digital marketing. The decision was made
because digital marketing is widely used in businesses. Having considered the pervasiveness of Artificial
intelligence and machine learning and the dynamic nature of the industry, the focus is on analyzing its effect
when applied in digital marketing.
1.1 Meaning and Definitions

Digital marketing refers to the use of digital channels, platforms, and technologies to promote and sell products
or services. It encompasses a wide range of activities, including social media marketing, content marketing,
email marketing, search engine optimization (SEO), and paid advertising. Unlike traditional marketing, digital
marketing allows businesses to reach a global audience with greater precision and efficiency.

1.2.1 Definitions of Digital Marketing Strategies

1. American Marketing Association (AMA): Digital marketing strategies involve the application of
marketing techniques via digital channels to support the objectives of an organization by engaging with
customers and building relationships.

2. Philip Kotler: Digital marketing strategies are a set of practices that businesses adopt to promote their
products or services using online platforms, focusing on customer engagement, satisfaction, and loyalty.

3. Chaffey and Smith (2013): Digital marketing strategies are designed to manage online customer
relationships by integrating digital communications with traditional marketing methods.

4. Hub Spot (2021): Digital marketing strategies include all marketing efforts that use the internet or an
electronic device, from SEO and content marketing to email marketing and social media engagement.

5. Investopedia: Digital marketing strategies are tactics implemented across digital platforms to reach and
engage with current and potential customers through websites, social media, and other digital mean

1.1 Digital Marketing:-

Digital marketing can be defined as the process of promoting of brands using digital distribution channels
comprising internet, mobile and other interactive channels. The basic advantage in this form of advertising
lies in its low cost model.
Digital Marketing can be classified into Pull and Push marketing.
Pull
Pull digital marketing technologies involve the user having to seek out and directly grab (or pull) the content
via web searches. Web site/blogs and streaming media (audio and video) are good examples of this. In each of
these examples, users have a specific link (URL) to view the content.
Push
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Push digital marketing technologies involve both the marketer (creator of the message) as well as the
recipients (the user). Email, SMS,RSS are examples of push digital marketing. In each of these examples, the
marketer has to send (push) the messages to the users (subscribers) in order for the message to be received.

1.1.2 Web Site Designing

From the initial process of taking inputs from clients, planning on the basis of such inputs to final
implementation and testing – all are done using latest web designing techniques and skills. Our services have
the advantage of offering clarity in its design style, which is backed up with an easy and free flowing content
and latest technical know-how. Not only we provide affordable web site design and ecommerce web
development services but also search engine friendly designs. Our Service Includes
 Website Design
 Website Redesign
 Shopping Cart Web Design
 Detailed and Advanced Page Layout
 Custom Logo Design
 Banner Ads
 Custom Graphics Design using advanced design tools.

1.2 Digital Marketing Trends:

Organizations are implementing a wide range of digital channels so as to engage customers in a more
personalized way. Digital marketing trends that organizations are rapidly embracing include

1.2.1 Mobility:
Business Insider's recent report indicates that globally, one in every five people owns a smart phone, and one in
every 17 owns a tablet. That's an increase of nearly 1.3 billion smartphones in last four years. Therefore an
increased user base accessing the internet via smartphones has prompted many companies to optimize their
online content for mobile devices.

1.2.2 Social media:

Organizations are focusing on engaging with customers through social media to offer real-time interactions.
Social media helps organizations reach out to a vast pool of potential customers by supplying them with
medical and campaign-related information.

1.2.3 Social-Local-Mobile marketing:

The growing popularity of smart mobile devices, increasing location based social activities like experience
sharing, review reading via social media and the evolution of Global Positioning System (GPS) are helping
companies leverage Social-Local-Mobile marketing activities.

1.2.4 Personalized Content marketing:

Customer engagement, acquisition and retention have all taken on a new dimension with the delivery of unique,
personalized, and relevant messages through identified digital channels.Email is one of the most preferred
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marketing channel to broadcast targeted organization messages and campaigns to existing and prospective
customers.

1.2.5 Advanced analytics:

Increased adoption of digital channels is generating large volumes of customer behavioural data. Advanced
actionable analytics can help organizations define targeted marketing strategies.

Search Engine Marketing (SEM) / Search Engine Optimization (SEO) Organizations are focusing on SEO
efforts and paid search advertising for enhancing the visibility of their products and services.

One more trend that has been observed recently is the continually mounting costs of pay-per-click (PPC) that
has resulted in the increased disappointment with this form of search engine Advertising. According to experts,
the reason behind such high costs is the huge investments made by large business concerns. Consequently,
online business owners have now turned to the organic search results delivered through search engine
optimization to enjoy so many advantages. There is currently more emphasis given to user-generated content,
improved conversion rates, location- or language specific campaigns, and E-mail newsletters.

The future of online Advertising is going to be more interactive with elevated bandwidth and computing speed.
Viewing and transmitting videos will be a cakewalk for web surfers. There is also every possibility of
witnessing browser-specific results in the coming days. Social media will consolidate their dominance further.
They will not only make more revenues, but will grab the attention of more and more users as well. As far as
search engine optimization is concerned, the search engine algorithms and link determination factors will be
complicated.

Further, thereby giving a hard time to online Advertising companies. Websites will be a lot slimmer to enhance
user browsing experience. Last but not least, video search will grow in prominence with the potentiality to
dictate the terms in the world of Internet advertising.

1.2 Evolution of Digital Marketing

The concept of digital marketing has evolved significantly over the past few decades. Initially, businesses
relied on simple websites and email communication. However, the rise of social media, search engines, and
advanced analytics tools has transformed digital marketing into a sophisticated and dynamic field. Key
milestones in the evolution of digital marketing include the launch of Google in 1998, the emergence of
social media platforms like Facebook and Twitter, and the introduction of mobile marketing.

1.3.1 Early Stage (1990s) The 1990s marked the inception of digital marketing with the introduction of the
World Wide Web. Businesses started developing basic websites to provide information about their products and
services. The first clickable web ad appeared in 1994, ushering in the era of online advertising.

1.3.2 Search Engine Revolution (Late 1990s to Early 2000s) The late 1990s saw the emergence of search
engines like Yahoo, AltaVista, and Google. Search Engine Optimization (SEO) became crucial for businesses

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to improve their online visibility. Google Ad Words, launched in 2000, transformed digital advertising by
allowing businesses to target audiences based on keywords.

1.3.3 Social Media Boom witter (2006), and LinkedIn (2003), social media marketing gained prominence.
Businesses began leveraging these platforms to engage directly with customers, create brand communities, and
promote their offerings.

1.3.4 Mobile Marketing Era (2010s) the proliferation of smart phones and mobile applications led to the rise
of mobile marketing. Responsive web design, mobile-friendly content, and location-based marketing became
essential components of digital strategies. The launch of Instagram (2010) and Snap chat (2011) further
diversified marketing opportunities.

1.3.5 Data-Driven Marketing and Automation (2015 Onwards) Advancements in analytics tools and
marketing automation software enabled businesses to track customer behavior, personalize interactions, and
optimize campaigns in real-time. Tools like Google Analytics, Hub Spot, and Sales force revolutionized
marketing practices.

1.3.6 Current Trends (2020s) the digital marketing landscape continues to evolve with the integration of
Artificial Intelligence (AI), Augmented Reality (AR), and Virtual Reality (VR). Voice search, chat bots,
influencer marketing, and short-form video content are dominating current strategies. The COVID-19 pandemic
accelerated the adoption of e-commerce and digital communication channels.

1.4 Importance of Digital Marketing for Small Businesses

Small businesses often face resource constraints, making it challenging to compete with larger
enterprises. Digital marketing provides cost-effective and scalable solutions for small businesses to
promote their products and services, build brand awareness, and engage with customers. Key benefits of
digital marketing for small businesses include:

o Increased Reach: Ability to target a global audience through websites, social media platforms,
and email marketing.
o Cost Efficiency: Digital marketing is more affordable than traditional marketing methods,
enabling small businesses to achieve significant reach without large budgets.
o Customer Engagement: Interactive communication through comments,
o Measurable Results: Tools like Google Analytics and Facebook Insights help small businesses
track campaign performance and make data-driven decisions.
 Competitive Advantage: By adopting innovative marketing techniques, small businesses can compete
effectively with larger competitors.

1.4.1 Strategies for Small Businesses in Digital Marketing

1. Content Marketing: Creating high-quality, relevant content to attract, engage, and retain customers.
Blog posts, infographics, videos, and social media posts are popular content formats.

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 2. Social Media Marketing: Utilizing platforms like Facebook, Instagram, LinkedIn, and TikTok to
connect with customers, promote products, and build brand communities.
3. Search Engine Optimization (SEO): Optimizing website content to rank higher in search engine
results, driving organic traffic.
4. Email Marketing: Sending personalized emails to nurture leads, share updates, and offer promotions.
5. Influencer Marketing: Partnering with influencers who have a strong following to promote products.
6. Pay-Per-Click Advertising (PPC): Running paid ads on search engines and social media to generate
leads and sales.
7. Local SEO: Targeting local customers by optimizing listings in Google My Business and using
location-based keywords.

1.5 Key Components of Digital Marketing

1. Search Engine Optimization (SEO): SEO is the process of optimizing a website to improve its
visibility on search engines like Google and Bing. It involves on-page SEO (content and meta tags), off-
page SEO (backlinks), and technical SEO (website structure and speed). SEO helps businesses attract
organic traffic without relying heavily on paid advertisements.
2. Content Marketing: Content marketing focuses on creating, publishing, and distributing valuable,
relevant, and consistent content to attract and engage a target audience. It includes blog posts, videos,
infographics, podcasts, and eBooks. High-quality content builds trust, authority, and loyalty, driving
customer engagement and conversions.
3. Social Media Marketing: This component involves promoting products, services, and content through
social media platforms like Facebook, Instagram, Twitter, LinkedIn, and TikTok. Social media
marketing helps businesses increase brand awareness, foster customer relationships, and generate leads
through organic posts and paid ads.
4. Email Marketing: Email marketing is the practice of sending personalized emails to a segmented
audience. It helps nurture leads, promote products, and maintain relationships with customers. Effective
email marketing requires compelling content, clear calls-to-action, and performance analysis through
metrics like open rates and click-through rates.
5. Pay-Per-Click (PPC) Advertising: PPC advertising involves paying for ad placements on search
engines, social media platforms, and websites. Advertisers pay a fee each time a user clicks on their ad.
Google Ads and Facebook Ads are popular PPC platforms. PPC campaigns can generate immediate
traffic, leads, and sales, provided they are optimized with the right keywords and targeting.
6. Affiliate Marketing: In affiliate marketing, businesses partner with external publishers or influencers
who promote their products or services. Affiliates earn a commission for each sale or lead they generate
through unique referral links. This performance-based strategy helps businesses expand their reach with
minimal upfront costs.
7. Influencer Marketing: This strategy leverages influencers with a large and engaged following to
promote products or services. Influencers can create authentic content that resonates with their audience,

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 driving brand awareness and conversions. Influencer marketing is particularly effective on social media
platforms like Instagram, YouTube, and TikTok.
8. Marketing Automation: Marketing automation uses software to streamline repetitive marketing tasks
such as email campaigns, social media posting, and ad management. Tools like HubSpot, Marketo, and
Mailchimp help businesses save time, increase efficiency, and deliver personalized content based on
customer behavior.
9. Analytics and Data Analysis: Data analytics is essential for measuring the effectiveness of digital
marketing campaigns. Tools like Google Analytics provide insights into website traffic, user behavior,
and conversion rates. Data-driven marketing helps businesses make informed decisions and optimize
their strategies for better results.

1.6 Digital Marketing Tools and Technologies

Success of digital marketing initiatives depends on the effective use of tools and technologies. Popular tools
include:

1. Google Analytics: Analyzes website traffic and user behavior.

2. HubSpot: Offers CRM, content management, and marketing automation.
3. Mailchimp: Facilitates email marketing and audience segmentation.
4. Hootsuite: Manages social media accounts and schedules posts.
5. SEMrush: Provides SEO, content marketing, and competitive analysis.
6. Canva: Assists in creating visual content for marketing campaigns.
7. Ahrefs: Specializes in backlink analysis and SEO research.
8. Zoho CRM: Integrates marketing, sales, and customer support tools.
9. Sprout Social: Helps in social media analytics and engagement.
10. Buzz Sumo: Identifies trending content and influencers in the industry.

Techniques Used in Digital Marketing:

1. Search Engine Marketing (SEM): Involves paid advertising to increase visibility on search engine
results pages (SERPs).
2. Content Repurposing: Adapting existing content into different formats for various platforms.
3. A/B Testing: Testing different versions of content or ads to identify the most effective approach.
4. Remarketing: Targeting users who have previously interacted with the website or app.
5. Geo-Targeting: Delivering content or ads based on a user’s location.
6. Behavioral Targeting: Analyzing user behavior to personalize marketing efforts.
7. Influencer Collaboration: Partnering with industry influencers to extend reach.
8. Chatbot Integration: Using AI-powered chatbots to engage visitors and provide customer support.
9. Interactive Content: Creating polls, quizzes, and videos to boost user engagement.
10. Voice Search Optimization: Adapting content for devices using voice assistants.

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1.7 Challenges in Digital Marketing for Small Businesses

Despite its advantages, digital marketing presents certain challenges for small businesses, such as:

 Budget Constraints: Limited financial resources can restrict the ability to invest in tools, advertising,
and skilled personnel.
 Technological Barriers: Lack of technical knowledge and expertise makes it difficult for small
businesses to adopt and implement advanced marketing tools and techniques.
 Intense Competition: Small businesses often struggle to compete with larger companies that have more
resources and established brand presence.
 Content Creation: Consistently producing engaging, high-quality content that resonates with the target
audience requires time, effort, and creativity.
 Rapid Technological Changes: The fast-paced nature of digital marketing demands continuous
learning and adaptation to new trends, tools, and algorithms.
 Data Privacy and Security: Ensuring compliance with data protection regulations like GDPR and
safeguarding customer information can be challenging for resource-limited businesses.
 Measuring ROI: Tracking and analyzing marketing performance to determine the return on investment
can be complex without proper tools and expertise.
 Platform Dependency: Over-reliance on specific platforms, such as social media or search engines,
makes businesses vulnerable to algorithm changes and policy updates.
 Customer Engagement: Building and maintaining meaningful customer relationships in a highly
competitive and dynamic digital environment requires consistent effort.
 Limited Access to Skilled Talent: Recruiting and retaining professionals with digital marketing
expertise can be difficult for small businesses competing with larger organizations.

Addressing these challenges requires small businesses to adopt a strategic approach, invest in continuous
learning, and leverage cost-effective tools and resources available in the market.

1.2 Research Problem

Modern marketing requires an in-depth grasp of customers' wants and interests, as well as the capacity to act
swiftly and effectively on that knowledge. The majority of businesses that have not included AI in their
marketing are unable to make real-time, data-driven decisions. (Camilleri, 2017). A huge amount of data is
collected in the process for personalization, which enables businesses to better identify consumer behaviour and
interests across multiple platforms and touchpoints, and therefore better-fit customer interest with suitable
content and increase sales (Dwivedi Y. K, 2020). Especially when consumers are engaged throughout their
journey with e-commerce, from awareness, investigation, and assessment to buying, reviewing, and
consumption (Mangiaracina et al., 2009). Also, when it comes to personalisation in e-commerce, there is
uncertainty over what defines personalization, and many suppliers claim to offer it.

Personalization can vary for each person, but it's important to have a strong foundation in design and make it
easy for customers to interact with sellers. This starts with a general approach that caters to many people and
then moves towards a customized experience based on what is known about an individual. (Elizabeth, A. &
Lukas, E., 2020).
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Wedel and Kannan (2016) concluded that effective digital marketers are increasingly expected to have expertise
both in marketing management and the practical applications of artificial intelligence. This indicates that
marketers that comprehend AI systems and the relevant methods of AI in the employed marketing tool are
much more likely to conduct successful campaigns. This is due to the fact that they are aware of AI's
technological constraints. The research reveals that in some instances, the assumptions of marketers exceed AI
competence. And based on the growing need to grasp both marketing and artificial intelligence, the research
investigates their connected understanding for conducting successful marketing campaigns.

What is the impact of AI on digital marketing? This is a question that digital marketers are still trying to answer
definitively. However, recent research from Gartner suggests that AI could have a big effect on the market,
especially as consumers are embracing it.

Although some digital marketing experts are doubtful about the power of artificial intelligence and machine
learning in their field, there is clear potential for significant changes and innovations. However, at the moment,
these technologies are only being used sparingly in digital marketing.

According to a study by Thilagavathy & Kumar (2021), an AI-driven global business advisory firm, AI and
digital marketing are expected to grow by 12% in the next few years. This is remarkable because there is limited
research available on this topic.

There is a significant lack of information on this topic, leaving many unanswered questions for those interested
in learning more. The existing research on artificial intelligence and digital marketing is spread out among
various publications, and there isn't a single article that comprehensively addresses all the solutions that arise
from artificial intelligence and its impact on digital marketing.

1.3 Purpose and Objectives

The aim of this study is to determine the Impact of AI on digital marketing. It will add to the current knowledge
about AI in digital marketing and how it is affecting marketing.

The objective of this study is to analyze the influence of artificial intelligence and its uses in digital marketing
by analyzing how it is being used in digital marketing and also determine how companies utilize it to improve
their performance. Therefore, the research question of this paper will be:

How does AI affect digital marketing and help companies improve their performance?

1.4 Scope & Significance of the Study

Since marketing is a broad topic, the writer decided to focus on digital marketing. This topic was chosen
because it was widely covered in the media before the writing process. Also, the researcher is also interested in
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pursuing a career in marketing. The goal is to gain important knowledge about how artificial intelligence relates
to digital marketing. Based on these reasons, the decision was made to make digital marketing the main focus of
this thesis. Artificial intelligence, machine learning, big data, and digital marketing will be specifically
explored. The aim is to identify significant benefits and discuss the future of artificial intelligence in marketing
and business. The hope is that this thesis will help marketing professionals understand and deal with AI more
easily. Also, the hope is to inspire other marketers to learn about the rapidly changing field of digital marketing.
Lastly, by writing and researching the thesis, the author will advance his career and gain a deeper understanding
of AI and digital marketing from different perspectives, including the latest developments in 2023.

1.5 Key Concepts

Artificial Intelligence (AI) Artificial intelligence is the concept and development of computer systems that can
do activities that would ordinarily need human intelligence. Visual recognition, voice recognition, making
difficult decisions on challenging problems, and the ability to interpret languages are all examples. (Oxford
University Press, 2019).

Machine learning (ML) is the ability of a computer to learn from raw data instead of being given commands
by humans. This means that machines can discover patterns and derive important information from the data
they collect from their detectors. (Buller, Gifford, & Mills, 2018.)

Search engine optimization (SEO) is the procedure of filtering a website using on-page and off-page methods
in order for it to be indexed and categorized effectively by search engines like Google, Bing, and others. It takes
a lot of effort to get a successful and organic listing on a search engine results page. (Dodson, 2016).

Chapter No 2 Research Methodology

2.1 Research Design

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This study employs a mixed-method research design, incorporating both qualitative and quantitative
approaches to examine trends and challenges in digital payment systems. The rationale for using a mixed-
method approach is to gain comprehensive insights from both numerical data and subjective perspectives. The
study is structured as follows:

 Exploratory Research: Conducting literature reviews and analyzing industry reports to understand the
current landscape of digital payments.
 Descriptive Research: Surveys and questionnaires are used to collect quantitative data from consumers,
financial institutions, and business owners to measure trends, adoption rates, and security concerns.
 Case Study Analysis: Real-world case studies of digital payment platforms and companies provide
qualitative insights into industry best practices and challenges.
 Comparative Analysis: A comparison of digital payment trends across different regions, technologies,
and regulatory environments to identify common patterns and unique differences.

This multi-faceted research design ensures a well-rounded understanding of the subject, balancing empirical
data with contextual analysis.

2.2Data Collection Methods

1. Primary Data: Surveys and interviews with industry experts, consumers, and financial institutions to
gather firsthand insights. Primary data is collected directly from respondents through various research
instruments. The methods used in this study include:

 Surveys and Questionnaires: Structured surveys with closed and open-ended questions are distributed
to consumers, business owners, and financial professionals to gather insights on digital payment usage,
challenges, and security concerns.
 Interviews: Semi-structured interviews are conducted with industry experts, banking officials, and
fintech professionals to understand emerging trends and regulatory aspects.
 Focus Groups: Small discussion groups comprising digital payment users and industry stakeholders
provide qualitative insights into consumer behavior and adoption barriers.

2. Secondary Data: Analysis of existing literature, reports, and market studies on digital payment systems.
Secondary data is obtained from existing literature and credible sources to complement the primary data.
The sources include:

 Academic Journals and Research Papers: Peer-reviewed studies on digital payments, cyber security,
and financial regulations.
 Industry Reports and Market Analyses: Reports from financial institutions, consulting firms, and
regulatory bodies.
 Government Publications and Regulations: Policies, laws, and guidelines related to digital payments.
 News Articles and Case Studies: Real-world examples of digital payment trends, challenges, and
successful implementations.

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2.3 Sampling Technique

A stratified random sampling method is used to ensure a diverse representation of respondents, including
business owners, financial analysts, and digital payment users. A stratified random sampling method is used
to ensure a diverse representation of respondents, including business owners, financial analysts, and digital
payment users. The sampling process involves the following steps:

1. Defining the Population: The study focuses on individuals and businesses actively engaged in digital
payments, including consumers, merchants, financial experts, and fin tech professionals.
2. Stratification: The population is divided into distinct subgroups (strata) based on factors such as
industry type, demographic characteristics, and digital payment adoption levels.
3. Random Selection: A random sampling method is applied within each stratum to ensure that all
relevant perspectives are represented.
4. Sample Size Determination: The sample size is determined based on statistical methods to ensure a
representative and reliable dataset.
5. Data Collection Implementation: The selected participants are surveyed or interviewed to gather
qualitative and quantitative insights.

This approach ensures that the sample reflects the diversity of digital payment users, leading to more accurate
and generalizable findings.

2.4 Data Analysis Techniques

Statistical tools, thematic analysis, and comparative studies are used to interpret findings and identify patterns in
digital payment adoption, security concerns, and regulatory compliance. The collected data is analyzed using
various qualitative and quantitative techniques:

 Descriptive Statistics: Used to summarize data trends, frequencies, and distributions.

 Inferential Statistics: Techniques such as regression analysis and hypothesis testing help identify
relationships between variables.
 Thematic Analysis: Applied to qualitative data from interviews and focus groups to identify common
themes and insights.
 Comparative Analysis: Used to compare different digital payment trends across regions or
demographic groups.
 Correlation and Trend Analysis: Helps in understanding the impact of digital payment adoption on
economic factors.

Data visualization tools such as graphs, charts, and statistical software (e.g., SPSS, Excel, or Python) are used to
enhance clarity in presenting the findings.

2.5 Ethical Considerations

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Confidentiality and informed consent are maintained, ensuring participant anonymity and compliance with
ethical research standards. Ethical considerations play a crucial role in ensuring the integrity and credibility of
this research. The key ethical principles followed include:

 Informed Consent: Participants are fully informed about the purpose, nature, and implications of the
study before providing their consent.
 Confidentiality and Anonymity: Personal data and responses are kept confidential, and identifying
information is anonymized to protect participant privacy.
 Voluntary Participation: Respondents participate in the study willingly and have the right to withdraw
at any stage without any consequences.
 Data Protection and Security: Collected data is securely stored and protected from unauthorized
access.
 Avoidance of Bias: The research esures fairness and objectivity, avoiding any form of manipulation or
misrepresentation of data.

2.6 Objectives of the Study

The primary objectives of this study on digital marketing strategies for small businesses are as follows:

1. To Analyze the Impact of Digital Marketing:

o To evaluate how digital marketing strategies influence the growth, brand visibility, and customer
engagement of small businesses.
2. To Identify Effective Digital Marketing Techniques:
o To determine which digital marketing tools, platforms, and techniques yield the best results for
small businesses.
3. To Assess Challenges and Solutions:
o To identify the key challenges small businesses face in implementing digital marketing and
suggest practical solutions.
4. To Evaluate Cost-Effectiveness:
o To examine the cost-benefit aspect of digital marketing compared to traditional marketing
approaches.
5. To Provide Strategic Recommendations:
o To develop actionable recommendations that small businesses can implement to enhance their
digital marketing efforts.

2.2 Thematic Analysis

The approach of this paper relied on a qualitative method using one-to-one semi-structured interviews
(Saunders et al., 2019). The qualitative approach puts emphasis on what is said rather than focusing on statistics
and while in a qualitative approach usually, the number of answers is usually lower, it provides deeper
responses with better insights regarding a specific subject (Bryman & Bell, 2015). As a result, it is simpler to
assimilate new experiences and comprehend more detailed information. Thus, data collection will be through
using qualitative methods for the purpose of writing this paper. In order to reach a satisfying answer regarding
the research question, an analysis will take place relating the theories mentioned in the paper and the data
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collected from interviews (Bryman & Bell, 2015). The analysis of this paper will be done using thematic
analysis because it is the most coherent method when it comes to analyzing qualitative data (Saunders et al.,
2019).

2.3 Data Collection

The study investigates the effects of AI on digital marketing by conducting qualitative interviews with two
different categories of experts. The first group specializes in artificial intelligence, while the second specializes
in marketing. Because of the nature of the subject, which explores the knowledge value of one discipline
absorbed into another, the thesis follows this method.

To that end, the study interviews three AI experts to determine what type of knowledge can increase a
marketer's automation capabilities, what areas can benefit from AI and how it's used in marketing operations.
The participating experts are chosen for their expertise in AI, existing automation, and capacity to deliver AI
insights that marketers should be aware of. This will make it easier to comprehend the existing automation
capabilities and technology. These specialists were picked based on expert experience and understanding in the
area of artificial intelligence. The marketing group is investigated to determine how they are using AI and their
views on the necessary knowledge for standard use in automation.

2.4 Primary Data

Interviewers grasp a more detailed understanding using qualitative interviews rather than conducting a survey
(Bryman & Bell, 2015). Furthermore, being chosen for an interview feels more relevant than answering a quick
survey (Saunders et al., 2019). The data used for this research is mainly primary data and was gathered through
conducting semi-structured interviews (Bryman & Bell, 2015). The authors prepared topics for discussion when
conducting semi-structured interviews. Because the interview is based on structured questions, the informant
has some flexibility in responding (Bryman & Bell, 2015).

Using this method will provide the authors with detailed information to determine the impact of AI on digital
marketing. The interviews were scheduled to include a total of six participants: three AI experts and three
marketing professionals. The AI experts were chosen on the criteria that they employed AI technology and
solutions to run marketing. The marketing professionals were linkedin friends of one of the authors and were
chosen because they shared digital marketing discussions prior and were willing to be interviewed for the thesis.
It was suggested that the semi-structured interviews be conducted with one participant at a time and the authors
were keen to use as much primary data and information to get insights from first-hand experiences by
interviewing specialists in the AI technology and digital marketing fields.

Furthermore, the length of the interviews varied from one participant to the next depending on how much each
individual was willing to share and discuss further. According to Bryman and Bell (2015), the purpose of an
interview is to ask questions in order to operationalize and examine how concepts are utilized and related to the
informants.

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2.5 Secondary Data
Secondary data, according to Ghauri and Grnhaug (2010), is information that has already been obtained and
summarized for the reader. When doing a more in-depth investigation, secondary data is frequently employed as
a supplement to primary data. The author selected to review current literature in the chosen area in order to
make this thesis relevant.

Existing literature on earlier knowledge in the field of the subject is one example of such data. The existing data
was gathered using a variety of databases available online. The literature and journals were peer-reviewed to the
greatest extent possible.

2.6 Data Analysis

To examine the impact of artificial intelligence (AI) on digital marketing, this study used a qualitative approach
and conducted interviews with experts in AI and marketing. The goal was to understand how AI is used in
digital marketing and how it helps companies improve their performance.

The data analysis involved looking for common themes and patterns in the interview responses. This helped to
identify key insights and understand the impact of AI on digital marketing.

The primary data for this research came from interviews with six participants, including three AI experts and
three marketing professionals. The AI experts were chosen because they have experience using AI in marketing,
and the marketing professionals were selected based on their knowledge of digital marketing.

During the interviews, the participants shared their experiences and views on how AI is used in digital
marketing. The discussions were detailed and allowed the researchers to gain a deeper understanding of the
subject.

In addition to the interviews, the researchers also reviewed existing literature and journals related to AI and
digital marketing. This secondary data provided additional context and support for the findings.

By combining the insights from the interviews and the existing literature, the researchers were able to analyze
the impact of AI on digital marketing. This analysis helped to uncover important information about how
companies can use AI to achieve their marketing goals.

Using a qualitative approach and analyzing the data from interviews and existing literature, this study aimed to
provide valuable insights into the impact of AI on digital marketing. The findings can be used by companies to
improve their marketing strategies and take advantage of AI technology.

2.7 Ethical Considerations

During this research, several ethical considerations were taken into account to ensure the rights and well-being
20
of the participants and maintain the integrity of the study.

Informed Consent: Prior to conducting the interviews, informed consent was obtained from all participants.
They were provided with clear information about the purpose of the study, their voluntary participation, the
confidentiality of their responses, and their right to withdraw from the study at any time without consequences.

Respect for Participants: The participants' views, opinions, and experiences were treated with respect and
sensitivity. The researchers maintained a non-judgmental and unbiased approach throughout the interviews,
allowing participants to express their thoughts freely.

Voluntary Participation: Participation in the study was entirely voluntary, and participants were not coerced
or incentivized to take part. They were informed of their right to decline participation or withdraw from the
study at any stage without facing any negative consequences.

By considering these ethical considerations, this research aimed to uphold the principles of integrity,
confidentiality, respect, and voluntary participation. The ethical conduct of the study was essential in
maintaining the trust and cooperation of the participants and ensuring the reliability and validity of the research
findings.

2.8 Validity and Reliability

In this research study, efforts were made to ensure both the validity and reliability of the findings. Validity
refers to the accuracy and truthfulness of the research results, while reliability refers to the consistency and
repeatability of the study's measurements and outcomes.

Internal Validity: To enhance internal validity, careful attention was given to the research design and
methodology. The research question was clearly defined, and the data collection methods were aligned with the
research objectives. By using semi-structured interviews and thematic analysis, the researchers aimed to capture
diverse perspectives and obtain rich and meaningful data related to the impact of AI on digital marketing.

External Validity: While generalizability is not a primary focus of qualitative research, efforts were made to
enhance the external validity by selecting a diverse group of participants. The inclusion of AI experts and
marketing professionals with different backgrounds and experiences aimed to increase the transferability of the
findings to similar contexts.

Triangulation: To further strengthen the validity and reliability of the findings, triangulation was employed.
Triangulation involves using multiple sources of data, multiple data collection methods, or involving multiple
researchers to provide a comprehensive and well-rounded analysis. In this study, triangulation was achieved by
combining primary data from interviews with secondary data from existing literature.

By addressing these aspects of validity and reliability, this research study aimed to produce trustworthy and
meaningful findings. While qualitative research does not strive for statistical generalization, the findings
contribute to a deeper understanding of the impact of AI on digital marketing and provide insights that can
inform further research and practical applications in the field.

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 Chapter No 03 Literature Review

The literature review provides a comprehensive analysis of previous research and existing knowledge related to
digital marketing strategies for small businesses. It helps establish the foundation for the current study and
identifies gaps that the research aims to address.

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3.1 Introduction to Literature Review

The rapid growth of digital marketing has attracted significant attention from researchers, marketers, and
business professionals worldwide. This chapter presents a critical evaluation of existing literature, exploring key
concepts, theories, and findings in digital marketing strategies for small businesses.

1. Neelika Arora 32has published research article entitled “Trends in Online Advertising” in advertising Express,
Dec2013.

The global online advertising revenues are expected to touch US $10bn by 2015. In India, the revenues at
present are estimated to be Rs.80 cr. and are expected to increase six times more within the next five years. In
India, Internet as a medium is accepted by a wider industrial segment that includes automobiles, telecom,
education, banking, insurance, credit cards, FMCG (Fast Moving Consumer Goods), apparel/clothing, durables,
media, business services and tourism. Out of these, it is estimated that the banking, FMCG and insurance
sectors together account for 45% of the total advertising spend. In comparison to this, automotive, travel and
retail spend 37% of the total advertising revenue and financial service companies spend 12% only. Some of the
top spenders in India are automobiles, followed by brands like Pepsodent, Kelloggs, Cadbury, HDFC (Housing
Development Finance Corporation Ltd.) loans and Sunsilk. In addition to these the early adopters in the field of
finance and IT are also increasing their spending. Globally, the trend is that almost 60% of the revenue goes to
five firms- Goggle, Yahoo, Microsoft, AOL(America Online Launchers), and Overture. Approximately, 90% of
the Goggle revenues come from advertising. In India, portals like indiatimes.com, exchange4media.com,
rediffmail.com, agencyfaqs.com etc are attracting major online spender.

This article explains demographic profile of Indian users. It also gives the comparison between global trend and
Indian trend, which is useful for my research work.

2.Sumanjeet37 has published article on “On Line Banner Advertising” in Indian Journal of Marketing.
Online banner advertising has great potential as an advertising medium. It is easy to create, place and use. It
offers companies targeting well educated, innovative, affluent males/females or students with great potential for
success as their segments are highly represented.

3. Jaffrey Graham45 has published his article entitled “Web advertising’s future e-Marketing strategy” Morgan
Stanley Dean Witter published an equity research report analysing the Internet marketing and advertising
industry. The report studies research from dozens of companies and calculates the cost and effectiveness of
advertising across various media. Branding on the Internet works. For existing brands, the Internet is more
effective in driving recall than television, magazines, and newspapers and at least as good in generating product
interest.

4. Advertising in social media: How consumers act after seeing social ads. Adapted from Nielsen (2012: 10).
Social media has not only changed how people communicate online, but it has also changed the consumption of
other media too. Online social connections are used to filter, discuss, disseminate, and validate news,

23
entertainment, and products for consumption. (Ryan 2011: 15) The next chapters will explain more about each
of the world‘s current most widely used social medias. There are, of course, many other social networks and
applications (apps) available but considering the study, the focus is on the main Medias.

5. Vikas Bondar has published his article on “sales and marketing strategies” Internet is a really good thing. The
Internet gives people a greater amount of information as we need. It is the best way to get a comparison of the
products that we need. If we are interested in buying, it is best for us to check the Web sites. Also if we would
like to make our own Web page we can do this, without paying a lot of money. From where do we set all this
information? The answer is from advertising, which we see, everywhere: on TV, on the Internet, in the
newspapers and more. Year after year we get more and more new, interesting information and in the future the
Internet use will increase more than now. This article explains how internet is useful tool for advertisement.

6. According to Garder‘s survey (2013), the top priority in digital marketing investment will be to improve
commerce experiences through social marketing, content creation and management and mobile marketing. Key
findings also revealed that a company’s marketing success relies mostly on their website, social marketing, and
digital advertising, which are all parts of digital marketing. In addition, savings made by using digital marketing
can be reinvested elsewhere. Normally, companies spend 10 percent of their revenue on marketing and 2.4
percent on digital marketing, which will increase to 9 percent in the future.

7.J Suresh Reddy26 has published article in Indian Journal of Marketing. Title of article is “Impact of E-
commerce on marketing”. Marketing is one of the business function most dramatically affected by emerging
information technologies. Internet is providing companies new channels of communication and interaction. It
can create closer yet more cost effective relationships with customers in sales, marketing and customer support.
Companies can useweb to provide ongoing information, service and support. It also creates positive interaction
with customers that can serve as the foundation for long term relationships and encourage repeat purchases.
8.Economic times published article on “Indian companies using digital marketing for competitive advantage” in
Oct 2014.
According to this article a growing number of marketers in India are leveraging digital marketing to increase
their competitive advantage, a research by Adobe and CMO Council has revealed. According to the study, India
leads in the confidence in digital marketing as a driver of competitive advantage. Ninety-six per cent of the
Indian marketers have high confidence in the ability of digital marketing to drive competitive advantage. It is
among the highest in Asia-Pacific APAC with only Australia leading with 97 per cent, the research said.
However, while Indian marketers believe that the key driver to adopting digital is a growing internet population
(70 per cent in India against 59 per cent in APAC), their belief that customer preference and digital dependence
drive the adoption of digital, and that digital can engage the audience, is lower than the APAC averages, it
added.

The 2014 Adobe APAC Digital Marketing Performance Dashboard was compiled through quantitative surveys
with over 800 marketers across the region.

Marketers from Australia, Korea, China, India, Hong Kong, Singapore and other countries were covered.
"However, while India is an emerging leader in Digital Marketing, it has dipped in its own performance this
year as compared to the previous year. It is important to note that India scored much higher than the APAC
average last year," it said.

24
Adobe Managing Director South Asia Umang Bedi said that customer preference and digital dependence would
increase along with the increase in penetration of internet in the Indian market. "Therefore, what would matter
is how the Indian marketers are able to increase engagement and activate audience through digital marketing.
This presents challenges in programme planning, execution and most importantly measurement," he added. The
study also revealed that compared to their APAC counterparts, Indian marketers are receiving lesser support
from channel and sales teams for increasing digital spends. However they are doing better as compared to last
year suggesting that departments that have a customer interface are realising the importance of digital marketing
in augmenting their effort.

9. Andy mallinson in digital marketing magazine on Jan 23 2015 published article titles how social media
engagement will impact the retail space it saysTraditionally, social networks have not been used as a
tool to directly drive e-commerce sales, but as Nielsen reported in its Global ecommerce report
in August 2014, an estimated 61% of people spend a considerable amount of time researching
products through online channels before making a purchase. And interestingly, a significant 43%
of consumers revealed that they specifically browse through outlets such as Facebook, Twitter,
Pinterest, Instagram and Google+ to seek inspiration for the types of products to buy.

This last statistic reveals just how powerful social media can be in terms of enticing shoppers to make a
purchase, both through its use of visual content and product descriptions. But while many consumers still have
reservations about purchasing items through social channels directly, the social shopping phenomenon is clearly
only going to grow and it’s apparent that this growth will eventually have a positive impact on a retailer’s
bottom line.
One retailer which enjoyed success by promoting its products via social media is ASOS. At the start of 2014,
ASOS previewed their summer sale through a Facebook application, allowing fans to play a series of games to
accumulate points, getting them to the front of the virtual shopping queue. The winners gained first access to the
sale, and through the support of sponsored ads ASOS was able to generate 1 million views through the
application, growing their fan base by 32%.
This example shows how much potential there is for brands to drum up organic publicity for their products
whilst engaging through fans across social media channels. Furthermore, it proves that social media outlets have
evolved not only as a tool for driving community growth, but also as a revenue driving commodity to boost
business performance.
Retailers mustn’t underestimate the power of social engagement as a method of generating sales. This was
proved by Wanted Shoes, who recently worked with us to design and integrate a ‘social catalogue’ onto their
site. The social catalogue depicted real-life images of products that customers had recently purchased. When
hovering over a post, users of the site were then directed to a link to buy the exact shoe displayed in the picture,
or alternatively, were able to shop for other shoes from that designer.
Supporting the concept that that social media engagement can facilitate purchase orders, according to Nielsen,
77% of shoppers say ‘social exposure’ and validation to a product is the most persuasive source of information,
and does indeed drive them to make more purchases. After all, we mustn’t forget how powerful the trust of our
peers can be, and this has a direct impact of driving revenue.
As Wanted Shoes experienced, by showcasing its products in a customer driven catalogue, they were able to
boost revenue and encourage more people to engage with their brand. Following this example as well as the
25
other retail giants that have enjoyed impressive results through social channels, the retailer that ignores the
power of social engagement in 2015 could potentially miss out on a substantial revenue stream – one that could
decide the difference between success and failure in an increasingly competitive retail landscape.
10. Avinash kaushik is an indian entrepreneur published an article in dec 2014 titled digital marketing and
analytics are two ladders of magnificent success.

3.2 Theoretical Framework of Digital Marketing

3.2.1 Marketing Theories Applied to Digital Marketing:

 Traditional Marketing Mix (4Ps): Kotler's marketing mix theory of Product, Price, Place, and
Promotion remains relevant in digital marketing.
 Relationship Marketing: The shift from transactional to relationship-based marketing has gained
prominence in the digital era.
 Consumer Behavior Models: Understanding customer behavior online through models like the AIDA
(Attention, Interest, Desire, Action) model and the Technology Acceptance Model (TAM).

3.2.2 Evolution of Digital Marketing:

 Literature traces the evolution of marketing from print and broadcast media to social media and
influencer marketing.
 The shift from outbound marketing to inbound marketing through content and SEO strategies.

3.3 Key Studies on Digital Marketing for Small Businesses

Several researchers have explored the impact of digital marketing on small businesses. Key findings from
notable studies include:

 Chaffey and Smith (2017): Emphasized the importance of integrated digital marketing strategies for
business growth.
 Tiago and Veríssimo (2014): Identified social media marketing as a key driver for small business
success.
 Kaplan and Haenlein (2010): Highlighted the role of social media platforms in building customer
relationships.

3.4 Digital Marketing Channels and Techniques in Literature

Researchers have identified various channels and techniques critical for effective digital marketing, such as:

 Search Engine Optimization (SEO): Improving organic search visibility.

 Content Marketing: Creating valuable content to attract and engage audiences.
 Social Media Marketing: Leveraging platforms like Facebook, Instagram, and LinkedIn.
 Email Marketing: Directly communicating with customers through personalized emails.
 Pay-Per-Click Advertising (PPC): Driving traffic through paid search ads.
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3.5 Challenges and Barriers in Digital Marketing for Small Businesses

Prior research indicates several barriers to digital marketing adoption:

 Limited financial resources and technical expertise.

 Resistance to change and lack of knowledge about available tools.
 Difficulty measuring the effectiveness of digital marketing campaigns.

3.6 Emerging Trends in Digital Marketing

Recent literature points to several emerging trends:

 Artificial Intelligence (AI) and Machine Learning: Personalized marketing and chatbots.
 Voice Search Optimization: Optimizing content for voice-based search queries.
 Influencer Marketing: Collaborating with social media influencers to reach broader audiences.
 Augmented Reality (AR) and Virtual Reality (VR): Creating immersive customer experiences.

3.7 Research Gaps Identified

Upon reviewing existing literature, the following gaps have been identified:

 Limited research on the cost-effectiveness of digital marketing for small businesses.

 Inadequate focus on region-specific digital marketing strategies.
 Scarce empirical evidence on the long-term impact of social media marketing.

3.8 Advantages and Disadvantages of the study:

Advantages:

1. Practical Insights for Small Businesses:

o Provides actionable strategies to help small businesses enhance their digital marketing efforts.
2. Comprehensive Analysis:
o Offers an in-depth examination of various digital marketing tools, techniques, and trends.
3. Cost-Effectiveness Focus:
o Highlights budget-friendly marketing options suitable for small enterprises.
4. Identification of Challenges and Solutions:
o Identifies key challenges and suggests practical solutions for overcoming them.
5. Data-Driven Insights:
o Utilizes real-world data and case studies to support findings and recommendations.
6. Emerging Trends Exploration:
o Examines upcoming trends like AI, VR, and voice search, helping businesses stay ahead.
7. Sector-Specific Strategies:
o Tailors recommendations for different sectors within the small business domain.

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Disadvantages:

1. Limited Sample Size:

o The study may focus on a specific geographic area, limiting generalizability.
2. Rapidly Changing Landscape:
o Digital marketing evolves quickly, and some strategies may become outdated.
3. Data Availability Issues:
o Access to comprehensive and reliable data might be limited.
4. Subjectivity in Analysis:
o Qualitative insights may be influenced by subjective opinions.
5. Technology Dependency:
o Recommendations often require digital infrastructure, which some businesses may lack.
6. Limited Long-Term Insights:
o The study primarily focuses on current trends, with less emphasis on long-term implications.
7. Implementation Challenges:
o Small businesses might face difficulties in adopting suggested strategies without proper training
or resources.

3.9 NEED OF THE STUDY:

Advertising is normally done by a third party known as advertising agency.An advertising agency is a service
based business dedicated to creating, planning, and handling advertising for its clients. An ad agency is
independent from the client and provides an outside point of view to the effort of selling the client's products or
services. An agency can also handle overall marketing and sales promotions for its clients. Types of ad agencies
are
 Full service agencies

 Creative agencies

 Specialized agencies

 In-house agencies

 Digital agencies or new media agencies

This report is completely discussing about digital or new media agencies. There was a time when Television
was the most popular medium for Marketer to promote, spread awareness and generate leads for their products
but now the trend has changed and Digital media has taken its place. Main reason for this change was
 Traditional methods are expensive. Compared to digital marketing channels, you could end up spending lakhs of
rupees more.

 Traditional marketing channels fail to provide instant feedback and reports about who saw or heard an ad, and
took action. This data is collected long after the initial ad impression is made (and still then, the statistics are far
from exact numbers).

 Digital marketing, on the other hand, refers to marketing methods that allow organizations to see how
a campaign is performing in real-time, such as what is being viewed, how often, how long, as well as

28
 other statistics such as sales conversions.

The digital landscape is moving at a lightning fast pace. Every industry has been affected by the advances in digital.
Digital marketing is an essential part of this for companies who want to utilise the power of the internet in order to
boost business. The tremendous scope of Internet Marketing in India, we have to understand that marketing
through the internet can be an entirely different ball game. In fact it is a potent combination of technology
and marketing acumen.

Digital Marketing like traditional form of marketing is a highly result driven and set objective practice. One
can’t begin a digital marketing campaign without setting the campaign objectives. A digital marketer
understands the needs of the clients and visualizes their needs to deliver what they want.

Taking a look at last year’s figures, let’s see what AdAge discovered when looking at the statistics:

77% of people interact with brands on Facebook by looking at posts

17% share news and experiences with others about the brand
13% post updates about brands they have connected with
56% said they would recommend a brand after becoming a fan on Facebook
34% of digital marketers have generated leads from Twitter
so as a marketing management student it's very essential to research on such an important marketing tool and
study on its impact on revenue generation will help you to know about how marketing agencies performing .

3.10 Artificial Intelligence

AI refers to the transfer of human intelligence to machines. The idea has been around and thorough AI research
can be followed back to the 1950s when Alan Turing developed the famous Turing Test when he proposed to
consider if machines can think. (Turing, 1950), and John McCarthy coined the term Artificial Intelligence in
1955 when John arranged the 1956 Dartmouth Summer Research Project on Artificial Intelligence. An AI
concern, according to their proposition, seems to be "that of making a machine behave in ways that would be
called smart if a human were doing so" (McCarthy et al., 1955).

Artificial Intelligence (AI) contributes significantly to improving many operations and services worldwide.
Wichert (2020) discusses how artificial intelligence is used in quantum computing and machine learning. It aids
in the rapid resolution of difficult situations (Wichert, 2020).

According to Tanveer (2021), artificial intelligence (AI) automates marketing operations. Artificial intelligence-
based deep learning enables computers to recognize user behaviour and anticipate which groups are most likely
to become consumers (Tanveer et al., 2021). Programs may give particular information on which leads are most
likely to convert, helping marketers to focus their efforts on the most qualified leads without spending time on
less qualified prospects (Tanveer et al., 2021).

Additionally, it enables the personalization of items (Tanveer et al., 2021). This involves identifying prospective
clients based on buy demographics, geography, and purchase history, among other factors (Tanveer et al.,
29
2021). Additionally, it encompasses monitoring and consumer data associated with the items themselves
(Tanveer et al., 2021). For example, Under Armour recently used IBM's Watson to merge their own client data
with that of third parties to produce "Record," a tailored health and fitness monitoring app (Tanveer et al.,
2021).

As Hermann (2021) points out in his paper, AI enables the tailoring of relevant messaging for clients. The
predictive analysis enables businesses to have a better understanding of their customer's preferences and offer
suggestions based on that data (Hermann, 2021). Netflix and Amazon both utilize this to propose programs and
items (Hermann, 2021). As a marketer, developing a collection of data points that allows one to direct
customers to a certain product or service is quite powerful (Hermann, 2021). AI makes it simple for people to
solve their problems (Hermann, 2021).

3.10.1 Machine Learning

Machine Learning (ML) is a subset of AI that focuses on developing algorithms and models that enable
computers to learn and make predictions or decisions without being explicitly programmed. ML algorithms
learn from data, identify patterns, and make informed predictions or decisions based on the patterns they
discover.

ML has significant implications for digital marketing. It enables marketers to analyze large amounts of data,
extract valuable insights, and make data-driven decisions to optimize their marketing strategies and campaigns.
ML algorithms can process and analyze vast amounts of customer data, such as browsing behaviour, purchase
history, demographics, and preferences, to generate personalized recommendations, target specific customer
segments, and deliver tailored marketing messages.

ML algorithms are also used in various digital marketing applications, such as:

1. Customer Segmentation: ML algorithms can automatically segment customers based on their behaviour,
preferences, and characteristics. This allows marketers to create targeted campaigns for different customer
segments and deliver personalized experiences.

2. Predictive Analytics: ML algorithms can analyze historical data to predict future customer behaviour, such
as purchasing patterns, churn probability, and response to marketing campaigns. This helps marketers anticipate
customer needs and optimize their marketing efforts.

3. Content Personalization: ML algorithms can analyze customer data and behaviour to deliver personalized
content recommendations, product suggestions, and offers. This enhances the customer experience and
improves engagement and conversion rates.

4. Sentiment Analysis: ML algorithms can analyze customer sentiment and feedback from various sources,
30
such as social media, reviews, and customer support interactions. This helps marketers understand customer
opinions, identify trends, and respond effectively to customer feedback.

5. Search Engine Optimization (SEO): ML algorithms can analyze search engine ranking factors, user search
patterns, and content relevance to improve website visibility and search engine rankings. This enables marketers
to optimize their websites and content for better organic search results.

6. Ad Targeting and Optimization: ML algorithms can analyze customer data and behaviour to target ads to
specific audiences and optimize ad placements and bidding strategies. This improves ad relevance, click-
through rates, and return on ad spend.

7. Fraud Detection: ML algorithms can analyze patterns and anomalies in customer behaviour to detect and
prevent fraudulent activities, such as fake accounts, payment fraud, and click fraud. This helps ensure the
integrity and security of digital marketing campaigns.

3.10.2 Deep Learning

Schmidhuber (2015) argues that deep learning is used in many everyday applications. For instance, it powers AI
systems that can show relevant ads on websites, recognize and tag friends in social media posts, convert speech
into text, drive self-driving cars, and translate text into different languages. Deep learning is also utilized in less
obvious areas. Credit card companies and banks use it to detect fraud, assess the risk of loans, and predict
bankruptcies. Hospitals employ deep learning to identify diseases, diagnose patients, and even develop
treatment plans.

Goodfellow (2016) explains that deep learning is a type of AI that has many advantages. It can automate tasks
that would be difficult for humans. By processing and analyzing massive amounts of data, deep learning AI can
do this faster than humans and with fewer errors. Proper coding ensures that deep learning systems run
accurately and efficiently.

Liu (2015) highlights that deep learning AI can also help reduce costs. When dealing with large amounts of data
or complex operations, human labour can be expensive. Unlike humans, AI robots powered by deep learning
don't need breaks or rest and can work continuously for long periods. They can be trained to repeat tasks
without getting distracted, bored, or tired. This cost-saving potential has revolutionized the technology sector.

Liu (2015) further emphasizes the importance of education in relation to deep learning. It is necessary for
learners to combine their existing knowledge with AI. Deep learning requires skills beyond basic computer
literacy taught in schools. By using computers and software, learners can explore and solve complex problems.

In summary, deep learning is a powerful form of AI that is widely used in various applications. It improves
efficiency, reduces costs, and has the potential to transform industries. However, it also highlights the need for
31
education to equip individuals with the skills to work effectively with AI and harness its full potential.

3.11 Digital Marketing

The terminology "digital marketing" refers to the practice of promoting products and services using digital
platforms like internet web pages, mobile devices, social networking sites, search engines, and other related
platforms which are all used in the marketing of products and services.

When the internet was first introduced in the 1990s, digital marketing quickly gained popularity (Baron, 2022).
Digital marketing concepts are comparable to traditional marketing concepts, and it is generally seen as a fresh
way for companies to engage with consumers and better understand their behaviour.

Companies have traditionally relied on print, television, and radio advertising to promote their products. Despite
the fact that these choices are still available today, the emergence of the Internet has resulted in a shift in the
way businesses communicate with their customers. That's where digital marketing comes in, because it
combines marketing with consumer feedback, resulting in a two-way engagement between the business and the
client (Baron, 2022).

Processes made possible by digital technologies add value to the business by providing new customer
experiences and facilitating interactions among customers. It is digital marketing itself that is made possible by
a succession of adaptive digital touchpoints that encompass the marketing activity as well as the institutions,
processes, and customers. As more offline customers migrate to digital technologies and "younger,
technologically oriented customers enter the lines of buyers," the interactions are increasing by more than 20%
every year, which is substantial (Bughin, 2015). It is necessary to map the current state of digital marketing
scientific investigation and correlate it to the business world in order to determine the critical role played by
artificial intelligence in digital marketing research and strategy. Then we will be able to determine to what
extent digital marketing in research is lagging behind the advancements in the corporate industry.

3.12 Digital Marketing Tools

3.12.1 Content Marketing
Creating and distributing suitable, beneficial brand-related information to existing or prospective customers, as
well as to other target groups via online media or print media, is referred to as "content marketing" (Hollebeek
& Macky, 2019).

In contrast to conventional advertising, which is typically defined as a form of communication intended to

convince or even force target audiences to take some action, either now or in the future (Dahlen & Rosengren,
2016), content marketing concentrates on adding utility to target audiences' lives, for example, by teaching
them, assisting them in solving issues, delighting them, or assisting them in making informed decisions (Wall &
Spinuzzi, 2018) (Vollero & palazzo, 2018). The social exchange theoretical concept states that a company's
distribution of suitable content to a target audience will result in the group rewarding the organization in
exchange for favourable attitudes. With over half of the content receivers dismissing unsuitable content,
marketers must be creative and innovative in their content creation if they hope to be successful in content

32
marketing. An IBM study found that just above 70% of companies provide their customers with a wide range of
unbiased and useful information (Synovec, 2019).

Fortunately, we have statistics to help us out in this situation. Personalization and appreciation of content are
made possible through data (Smilansky, 2018). for instance, using data to suggest products and services based
on past purchases. Data accumulated over time can now be used to make content suggestions (Sterne, 2017).
Every individual has their own unique set of tastes and interests. E-mails or social media ads tailored to the
preferences of each user can be created using this data. It is thus possible to attain marketing goals using
intelligent content formulation enabled by AI (Ellis-Chadwick & Chaffey, 2019). AI-aided content generation is
more powerful than it might sound. It consumes a lot of effort and money to produce purposeful information for
a wide range of products and services. Alibaba is one of the corporations that has developed an AI tool that can
create millions of lines of text and can write 20,000 lines of ad copy in a matter of seconds. Thus, their shops
may develop content without the need for human intervention (Mark J, 2019). The tool, developed as part of
Alibaba's digital marketing unit Alimama, aims to alleviate retailers' burdensome and time-consuming task of
writing copy for product listings by removing "millions" of actual human sentences from the company's e-
commerce platforms and interpreting them utilizing deep learning models and natural language processing
(NLP) technologies.

3.12.2 Search Engine Optimization

Search Engine Optimization (SEO) is a term that refers to processes that enhance organic web traffic to a
website, blog, or infographic in order for it to designate and appear as the first choice when a search is done
online. (Alexander L, 2022).

The significance of ranking high on the search engine page for a certain phrase cannot be overstated, as people
typically read results only on the first three pages (Pohjanen, 2019) or on the first page of results (Kritzinger and
Weideman, 2013).

SEO may also be defined as the task of creating a website that ranks successfully for keyword phrases in
organic search results while also boosting the quantity and quality of web traffic to a particular site (Iskandar
and Komara, 2018).

A website's user-friendliness, unique content, and well-described meta-explanation are all recommended by
Sharma and Verma (2020) in order to get better search engine rankings and generate more relevant visitors.
Furthermore, the more extensive the website's material, the more time the user devotes to reading it, which in
turn increases the amount of time users spend on the page. Because of this phenomenon, the website has a
greater chance of appearing higher in search results (Kaukoranta, 2015).

3.12.3 Social Media Marketing

In a marketing setting, social media platforms are defined as places where individuals connect and share
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information, thoughts and opinions (Kaplan and Haenlein, 2010). Social media, by virtue of its unique
characteristics of being as "powerful, networked, equitable, and engaging organisms" (Chen et al., 2013), have
resulted in three key transformations in the business.

To begin, social media enables businesses and customers to communicate in ways that were previously
impossible. This connection is facilitated by a variety of platforms, including social networking sites (for
example, Instagram, Snapchat, Tiktok and Meta), messaging sites (for example, Twitter), and creative
communities (for example, YouTube), all of which enable social media networks to form around common
interests and ideals (Kaplan and Haenlein 2010). In this context, "social connection" has been referred to as
"social bonds" (Quinton and Wilson 2016), with the degree and duration of these relationships determining their
strength or weakness (Granovetter, 1973). Previous research has established that strong ties are a significant
predictor of consumer recommendation behaviours (Verlegh et al., 2013).

Secondly, social media has changed the way businesses and customers communicate and influence one another.
Social contact entails "activities" that impact the decisions and consumer behaviours of others, whether through
dialogue or passive observation (Wang et al., 2011). Such social contacts were dubbed "word-of-mouth (WOM)
effects" by (Manchada et al, 2010).

According to Muller and Peres (2019), human connections rely heavily on social networks and give enterprises
quantitative value. Experts have extensively acknowledged the relevance of social impact in influencing
consumer choices in media research, and recent studies have demonstrated that people's relationship patterns
and the degree of social links might indicate the level of social relations (Zubcseck et al., 2011). Thirdly, the
availability of social media data has made it incredibly easier for businesses to manage consumer connections
more effectively and to make more informed business decisions (Bolton et al., 2010).

With the aid of recent information technologies, a massive amount of social media data can now be retrieved
and usefully utilized from a variety of sources on the web and in a variety of formats such as text, images and
video (Moe and Schweidel, 2017). Thus, this type of data can be a valuable source for customer analysis,
market research, and developing new innovative ideas, while extracting and creating new strategic resources
capable of improving marketing outcomes. Email marketing is one of the earliest forms of digital marketing, it
remains one of the most lucrative. According to a Litmus survey conducted in 2019, a dollar invested in email
marketing generates nearly forty dollars in return on investment (Ward, 2019).

This demonstrates that email marketing's primary purpose is to sell a product via a pitch. When an email is sent
to deliver useful information, it is frequently sent with the intention of selling a product or a service. (Ryan,
2017).

According to Sterne (2017), emails are written for a variety of purposes, including sending a gratitude note to a
new customer, developing a relationship, or advertising. AI technologies enable an examination of which types
of emails perform the best in terms of generating the biggest value for a business. Zeta Global (2019) provides
an artificial intelligence (AI) solution that enables marketers to spend less time on email content creation and
more effort on developing continuous relationships with clients. The company leverages predictive intelligence
34
to gain a more personal understanding of each customer, enabling marketers to choose the optimal timing,
develop segmentation, and determine the merit of content for each of the clients. Chowhound took advantage of
this chance to strengthen its business and saw a nearly 30% increase in email open rates and a nearly 150%
increase in email hits (Sterne, 2017).

(Sterne, 2017) asserts that AI is capable of determining the optimal timing for email addresses, the day's emails
are more likely to be read, suggesting relevant content, and design, offering the favoured imagery of a customer,
the colours a client prefers, and so forth. According to Sterne, the majority of the jobs stated might be
accomplished by marketing professionals. Nonetheless, the time spent on these duties would be in vain. As a
result, the AI is a great bargain.

3.13 AI-driven Marketing

Mari (2019) argues that marketing is one of the most AI-enabled businesses. An essential part of marketing's
job is to find out what customers want, match those requirements to the right goods and services, and then get
them to purchase (Mari, 2019). An AI-powered marketing and business strategy has the ability to drastically
enhance sales (Mari, 2019) and in a 2018 McKinsey study of over 400 use cases applying sophisticated AI
techniques, marketing was found to have the greatest promise for AI (Mari, 2019). AI-driven marketing,
according to Huang and Rust (2021), leverages technology to improve the consumer experience and journey.
Customers' sentiments, transactions, trips, and more are tracked by AI and used to build machine-learning
algorithms that predict customer behaviour (Huang & Rust, 2021). Customer engagement and retention
strategies will be developed using personalized information, suggestions, and communications (Huang & Rust,
2021). Saving money, increasing income, and enhancing customer satisfaction are all goals that AI aspires to
achieve (Huang & Rust, 2021). Artificial Intelligence (AI) can do various activities, despite its inability to show
compassion or empathy (Huang & Rust, 2021). Reduces digital marketing errors by streamlining, optimizing,
and providing data-driven reporting on marketing campaigns (Huang & Rust, 2021). The customized email
marketing that many of us are acquainted with is essentially the work of AI (Huang & Rust, 2021).

A chatbot is an excellent example of an AI application that simulates human intelligence by interpreting and
responding to consumers' queries and inquiries, as well as completing purchases online (Chaffey & Ellis-
Chadwick, 2019). At the moment, chatbots are gaining popularity. Numerous businesses use bots in their
operations using Meta Messenger or their own websites (Polson & Scott, 2018). Typically, a chatbot is
introduced to increase the efficiency of a customer support department; however, data obtained via Meta
Messenger can help an organization enhance its digital marketing effectiveness through its data analysis
capabilities. (Chaffey & EllisChadwick, 2019).

3.14 Marketing Automation

The term ‘marketing automation’ was first developed by John D.C. Little (Little, 2001), which he explains as a
digital marketing system that assists in making marketing decisions. Little in a Symposium described marketing
decisions that can be made by answering certain questions that are critical in marketing. He proposed evaluating
a customer’s digital footprints and applying relevant algorithms to generate meaningful management
35
consequences for the entire purchase funnel. Through the personalization of marketing activities, such
automated marketing decision assistance offers increased productivity, better decision-making, higher returns
on marketing, spending, and more consumer happiness and loyalty (Bucklin et al., 2002). Marketers are able to
get help in the decisions they make which improves marketing abilities and reduces costs.

Marketing automation was started due to the various issues that the marketing department faced at the time. The
aim of the automated marketing strategy was to effectively address customer desires and ensure that customer
satisfaction is achieved through technical means. However, there was large information regarding different
customer tastes and preferences that was difficult to sort and manage, which would have led to the online
system breaking down. Little (2001). Initially, marketing automation was designed to generically address
consumer concerns by providing recommended results rather than the personalized feedback that is done today
in terms of pricing, user journey and promotion (Hinz et al., 2011). Marketing automation has evolved to
address personal desires and ensure customers' tastes are being responded to in a particular way.

According to Little (2001), there are five layers of system operation: data inputs, real-time decision rules,
decision rule updates, site management feedback, and strategy choice. Little proposes deploying real-time
decision rules that are calibrated using previous data and updated through adaptive experimentation (Little
2001; Bucklin et al., 2002). The established systems should provide feedback to site management as well as
guidance for retailers to alter their strategy. Heimbach et al., (2015) provide a relevant example where a
customer may buy a movie ticket for an actor of their choice online. This information is captured by marketing
companies so that when a new movie with a similar theme or the same actor, the advertisement would pop up
on the customer’s feed to inform them that something they would be willing to purchase is available.

Marketing automation is a technical invention that has greatly improved the marketing sector. Automated
means of learning customer requirements and being able to provide personalized information that will aid in
their demand decisions reduce the workload required to find such information. Automation also easily connects
suppliers to buyers as customers are made aware of possible places to purchase their products and sellers will
find their intended target market.

When relating this concept to the developed AI with all its previously mentioned advanced sectors it can only
be expected to increase the efficiency of digital marketing processes while improving the overall consumer
experience by delivering extra relatable content based on their preferences and improving companies’
performance. Observing such improvements in the field would provide tangible evidence that will allow for a
better studying of how AI is impacting digital marketing.

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3.15Conceptual Model

The conceptual model above shows the relationship between AI and marketing automation, digital marketing
and company goals and performance. The model depicts a relationship between artificial intelligence, market
automation and digital marketing which further affects company goals and performance. It is expected that
artificial intelligence will affect digital marketing positively. Furthermore, marketing automation is expected to
have a significant impact on digital marketing. This suggests that incorporating AI and marketing automation
features into the marketing system will improve digital marketing for most companies. The improvement in
digital marketing due to incorporation of the AI technology and marketing automation is expected to impact
company goals and performance positively (Synovec, 2019). The conceptual model, as explained in Figure 1
provides the basis for this study in defining a relationship between technology and marketing outcomes.

3.16 Limitations of the Study

During the research, a few setbacks were experienced. Firstly, the study is focused on six respondents who may
have provided a small perspective of the actual situation. Therefore, results from this study may be applicable in
this situation only. To have a generalized view, one might need to cover a wider scope of data collection and
use quantitative research design. Although the situation in other organizations may be similar, there are a few
areas where there is a disparity that may disallow the applicability of results from this study.

Secondly, the time limit was another limitation in the study. Although the respondents were interviewed on
time, it is difficult to tell if the responses would have been different or more accurate under different
circumstances.

Thirdly, considering the authors' efforts to reach as many people in AI technology and digital marketing as
possible, it was hard to find professionals who felt comfortable discussing AI and digital marketing and sharing
their perspectives on the topics.

Even though the author had several good leads, possible participants were not motivated in participating in this
study due to their busy schedule or other constraints. However, in order to meet their personal objective of

37
finishing ahead of time, the author had to work under severe pressure.

In addition, the author agreed to attend industry events that could have produced more leads for interviewees.
But, due to the time constraint, the author was only able to attend one such event and had to rely on digital
methods and channels to gather interviews.

Nonetheless, working on and producing this study equipped the authors with excellent time management
experiences. This thesis could not be done in such a short period of time if time management was not used.

Chapter No 04 Data Analysis and Interpretation

As stated in the section on methods of research, this thesis collected data from a total of six individuals.
Participants can be classified into two groups based on their profession. Each group contains three participants.

4.1 Participant Demographics

The participants in this study were divided into two groups based on their profession: AI experts and marketing
professionals. Each group consisted of three participants, resulting in six individuals contributing to the
38
findings.

Group 1: Marketing Professionals

Profession Role

Content Writer Creating engaging and informative written

content for various digital marketing channels.

Social Media Marketer Managing social media platforms, creating

and implementing social media marketing
strategies, and engaging with the target
audience.

Content Creator Develops multimedia content such as videos,

graphics, and animations for digital marketing
campaigns.

Group 2: AI Experts

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 Profession Role

Artificial Intelligence Developer Develop programs in which AI tools function.

Data Analyst Collect, analyze, and interpret large amounts

of data by using machine learning and
predictive analytics

Business Intelligence Developer / Software Responsible for developing and maintaining

Developer several software solutions which can be used
to access data and support the goals of the
company.

4.2 Summary of Template Analysis of the Interview Findings:

The template analysis of the interview findings provided insights into the perspectives of two distinct groups:
marketers and AI experts, regarding artificial intelligence (AI) and digital marketing. Here is a summary of the
key findings from each group:

A. Marketers:
i. Background in Marketing:

The marketers had specialized knowledge in marketing, with degrees and experience in the field. They also
possessed expertise in digital marketing and automation, particularly in areas like social media marketing.

ii. Artificial Intelligence (AI) and Digital Marketing Views:

a. Content Writer:

The content writer expressed enthusiasm about the use of AI in digital marketing, stating, "AI-powered tools
have greatly improved content creation processes. They help me generate ideas, optimize SEO, and even
proofread my work, saving me time and enhancing the quality of the content."

The content writer also acknowledged a potentially negative aspect of AI in their role, specifically related to the
generation of inaccurate data. They pointed out that while AI can assist in various content-related tasks, there is
a risk of AI algorithms producing inaccurate or misleading information. This could occur when AI-generated
data lacks the necessary context, nuances, or human judgment that a content writer can provide.

The content writer emphasized the importance of verifying and fact-checking AI-generated content to ensure its
accuracy and reliability.

b. Social Media Manager:

The social media manager highlighted the positive impact of AI in their role, specifically in social media
40
marketing. They emphasized the benefits of AI in social listening, caption generation, and idea generation.

AI-powered tools enable effective monitoring, analysis, and understanding of conversations, trends, and
sentiment on social media platforms, providing valuable insights for data-driven decision-making. AI also helps
save time and maintain consistency by generating relevant and engaging captions for posts, and it assists in
generating creative content ideas by analyzing data and identifying patterns.

However, it is important to acknowledge that the social media manager also mentioned a potential negative
impact of AI. They pointed out that while AI can streamline processes and generate ideas, there is a risk of
losing the human touch and authentic engagement with the audience. Over-reliance on AI-generated content
and automation may result in a lack of personalization and genuine interactions, which are essential for building
strong connections with the audience.

c. Content Creator

The Content Creator, specifically the Graphic Designer, highlighted the positive impact of AI on their role,
specifically in improving design quality.

According to him, AI serves as a valuable assistant in the design process by automatically analyzing elements
such as colour contrast, font size, and spacing. This helps him identify any inconsistencies or areas that may
need improvement. Additionally, AI offers alternative colour palettes and font suggestions, allowing him to
explore different creative options and optimize the visual impact of his designs.

He also stated that while AI can be a valuable tool for enhancing efficiency and providing suggestions, it should
not replace the creative expertise and originality that he brings to his designs. By integrating AI as a supportive
tool rather than relying solely on its capabilities, he can leverage the best of both worlds.

B. Artificial Intelligence Experts:

i. Background in Computer Engineering

The AI Experts had a strong background in computer engineering, which provided them with a solid foundation
in technology and programming. Their educational background included degrees in computer engineering,
equipping them with technical knowledge and skills in areas such as coding, algorithms, and software
development.

This background enabled them to understand the intricacies of artificial intelligence and its applications in
various domains, including digital marketing.

ii. Artificial Intelligence (AI) and Digital Marketing Views:

a. Artificial Intelligence Developer

The Artificial Intelligence Developer discussed the role of AI in generating content during the interview. He
highlighted the significant advancements made in AI technology, specifically mentioning applications like
ChatGPT and Copy.ai.

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According to him, AI has revolutionized content generation by automating the process and saving valuable time
for content creators. He explained that applications like ChatGPT utilize natural language processing algorithms
to generate human-like text based on prompts and inputs. This enables content creators to quickly generate
ideas, draft articles, and create social media captions with the assistance of AI.

He emphasized that AI-powered content generation tools like Copy.ai have proven to be particularly useful,
especially for smaller companies with limited resources. These tools leverage AI algorithms to assist in creating
compelling copy, whether it's for advertising campaigns, blog posts, or website content. By harnessing the
power of AI, content creators can save time and effort while still maintaining quality and relevance in their
content.

Furthermore, the developer noted that AI-driven content generation tools offer a wide range of features, such as
generating engaging headlines, suggesting creative ideas, and even providing content outlines. He stressed the
value of these tools in streamlining the content creation process and enabling content creators to focus on other
critical aspects of their work.

However, he also acknowledged a potential drawback of AI-generated content. He mentioned that while AI can
assist in generating content efficiently, it may lack the human touch and creativity that comes with unique
perspectives and personal experiences. It is essential to strike a balance between utilizing AI tools and ensuring
that the content maintains a genuine and authentic voice.

b. Data Analyst

The Data Analyst interviewed as part of this research provided valuable insights into the impact of artificial
intelligence on digital marketing from a data-driven perspective. Here are the key points discussed during the
interview:

❖ Predictive Analytics and Forecasting:

The Data Analyst discussed the significance of predictive analytics in digital marketing. By leveraging AI and
machine learning algorithms, marketers can analyze historical data to predict future trends and consumer
behavior. This enables them to make data-driven decisions, optimize marketing campaigns, and allocate
resources effectively.

❖ AI-Driven Customer Segmentation:

One of the key areas where AI has made a notable impact is in customer segmentation. The Data Analyst
explained how AI algorithms can segment customers based on various factors such as demographics, behaviors,
and preferences.

This allows marketers to personalize their marketing efforts and deliver targeted messages to specific customer
segments, leading to improved engagement and conversion rates.

❖ Ethical Considerations in AI and Data Analysis:

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The Data Analyst acknowledged the ethical considerations associated with AI and data analysis in digital
marketing. He emphasized the importance of data privacy, transparency, and compliance with regulations. It is
crucial for marketers to handle consumer data responsibly and ensure that AI-driven decision-making processes
are fair and unbiased.

Overall, the Data Analyst provided valuable insights into how AI is transforming data analysis in digital
marketing. AI-powered tools and algorithms enable marketers to leverage data effectively, personalize
marketing efforts, and make data-driven decisions to optimize their campaigns and drive business success.

However, it is crucial to consider ethical considerations and maintain a balance between automation and
maintaining a human touch in marketing strategies.

By employing the same terms as the participants, the presented results exclude the possibility of biased
information.

The study that was done involved assessing how conversant various respondents were to marketing automation
and to AI technology. This thesis gathered data from a total of six people, as described in the methodology
section. Based on their profession, participants were divided into two categories, with each category having
three participants. Two data segments were supplied ahead of time and the interview guides were separated and
classified according to their significance to the research objectives.

The general finding was that AI technology improves marketing strategies significantly, by processing customer
data efficiently and providing customer preferences in a short time. Marketers aim to gain competency in both
marketing analysis and actual artificial intelligence applications throughout time (Wedel & Kannan, 2016).
Consequently, marketers who understand the underlying AI technology and techniques that apply to the
marketing tool in use are far more likely to run successful campaigns.

Businesses will benefit from AI by enhancing their understanding of the underlying relationships among
datasets and assisting them in establishing models to handle the dynamic changes in digital commerce.
Additionally, with the help of AI and machine-learning technologies, decision models may foresee an event that
has not yet occurred with higher precision and depth, enabling one-to-one engagement, and delivering economic
value to the business.

4.3 Viewpoints of AI in marketing

The participants' occupation and background are discussed in the first section of the interview. Participants were
also asked to characterize AI in marketing and share their thoughts and ideas on the topic. The interview guides
were created in such a way that AI implementation in digital marketing may be automated.

AI experts:

The data collected reveals a degree of flexibility in their speciality determinants in AI and their industry
experience. However, when it comes to their views of AI's connection to marketing, all participants have

43
identical responses. They all think AI's present state is important for automating marketing efforts.

In addition, this group argues that AI systems are designed in such a way that marketers are not obliged to
understand the fundamental architecture. While this may be beneficial and allow a better grasp, they believe that
marketers must be aware of the tool's genuine limitations. This means that they are required to understand the
tool's strengths and drawbacks. They will be able to use such solutions without fear of bias.

In general, AI experts have modest assumptions of marketers' practical and technological infrastructure
knowledge. They do, however, believe that marketers have a decent grasp of marketing automation. Although
they believe that expanding a marketer's knowledge of AI architecture is beneficial, the experts also believe that
the most important thing for a marketer to learn is the behavior of the system in operation, as well as the impact
of outputs and inputs. The respondents have gained skills in other subjects but opted to understand artificial
intelligence to boost their marketing techniques.

According to the respondents, AI is like a brain, which concludes as human beings, but in a faster, more
efficient way. It is the ability of computers or machines to perform human work but more efficiently.

On marketing the AI experts suggested that the technology sufficiently improves the marketing system. The
participants are of the view that marketing managers ought to learn AI skills to enhance their marketing
strategies.

The respondents suggest that marketers take short courses to learn AI, or 12 day python coding courses that
enhance AI skills for better marketing strategies.

Additionally, marketers can use HubSpot and other platforms for automation. Marketing automation is a
technological advancement that has transformed the marketing industry. The labor necessary to find such
information is reduced by automated methods of learning consumer requirements and being able to deliver
customized information that will aid in their demand decisions. Customers are made aware of possible venues
to acquire their items, and vendors are able to identify their intended target market, thanks to automation.

When this concept is applied to the developed AI and all of its previously mentioned advanced sectors, it can
only be expected to improve the efficiency of digital marketing processes while also improving the overall
consumer experience by providing more relevant content based on their preferences and improving company
performance. Seeing such advancements in the area will provide concrete proof that will help researchers better
understand how AI is affecting digital marketing.

Marketers:

Marketers displayed a good understanding of artificial intelligence and its use in digital marketing. One of the
participants, for example, defined AI as a machine that uses judgments and acts on its own. One respondent
described AI as a machine that is always evolving toward human intelligence. Basically, turning what's in your
head onto a computer. So, with AI, we may facilitate the same kinds of thought patterns, conversations,
assumptions, and actual functionality that we have as human beings.

The participants stated that they had little experience with the AI technology but carried digital marketing
through platforms such as Amazon that used automation. One participant said that they use automation with the
help of AI that assists in social media marketing by assisting clients schedule their workforce.
44
The general view was that there was some knowledge of artificial intelligence, but it was not extensive. These
findings are consistent with the 2017 scenario where just 17% of 1,500 top corporate leaders in Cameroon said
that they were acquainted with AI technology when asked about it in an interview (Delloite, 2017).

Consequently, many companies fail at marketing improvement due to the lack of acceptance for enhanced
digital marketing methods. 41% of global marketers, in a survey that was conducted in late 2020, claimed
increased revenue growth and improved performance as a result of incorporating AI into their marketing efforts.
Another 38% related the use of AI in marketing to the creation of personalized customer experiences (Gutman,
2021). It is clear that marketing is now taking the AI route for improved performance.

However, the response from the marketers interviewed in this study shows that more needs to be done in terms
of awareness creation and training of marketers to better understand how to use the AI technology in their
marketing strategies.

4.4 Skills for Implementing AI in Marketing

The findings indicate that technical knowledge of AI is not always needed. Special skills are seen as secondary
by the participants. They feel that using a technology does not automatically entail that the machine's design is
implicated. Both sides appear to feel that AI systems are designed to be utilized with no prior AI knowledge or
understanding. Consequently, this understanding, according to both participating groups, could very well be
valuable. Results from the interviews also suggest that experience in artificial intelligence is important.

The AI expert’s stated that they gained AI skills through constant use of the technology. One respondent began
programming from a young age and has improved his skills ever since.

Additionally, using the AI technology in their marketing activities, enhances their learning of the technology
which builds up proficiency. Therefore, it is not only important to take the course.

AI technology depends on practical work that increases knowledge and experience, especially in marketing. The
participants claimed that they have experience in ML and social media marketing which has improved their
marketing techniques and outcomes significantly.

AI must be included into the strategy of businesses. Consequently, leveraging its advantages and remaining
competitive. While it is crucial for consumers to understand the relationship between advertisements and data
gathering, it is also essential that they understand how advertisements connect to data collection. The use of AI
technology could mean a lot for the future of marketing, but the right rules should be formulated to control data
gathered through using AI.

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Areas of Utilisation
1. CustomerDataAnalysis
AI excels in analyzing large volumes of data to extract meaningful insights about customer
behaviors, preferences, and trends. This capability enables small businesses to understand their
audience better and tailor their marketing strategies accordingly. AI tools can segment customers
based on various criteria, predict customer behavior, and identify potential leads more
effectively.

2. PersonalizedCustomerExperiences
AI-driven personalization is transforming how small businesses
engagewithcustomers.Byutilizingdata on past interactions, purchase history, and browsing
behaviors, AI can help businesses deliver highly personalized content, product
recommendations, and offers to each customer. This personalization enhances the customer
experience, potentially increasing customer loyalty and conversion rates.

3. ChatbotsandVirtualAssistants
AI-powered chatbots and virtual assistants provide real-time, 24/7 customer service without
theneedfor human intervention. These tools can handle a range of tasks from answering FAQs to
assisting with transactions, and even providing personalized advice, significantly improving
customer engagement and operational efficiency.

4. ContentGeneration
AI can aid in content creation by generating textual content for
blogs,socialmediaposts,andevenbasic reports. This technology helps maintain a consistent
content output that is crucial for digital marketing, saving time and resources while ensuring the
content is optimized for SEO and engagement.

5. EmailMarketing
AIenhancesemail marketing strategies by optimizing when emails should be sent based on when
users are most likely to open them, personalizing email content for individual recipients, and
testing different versions of emails to determine which performs best (A/B testing).

6. DigitalAdvertising
AI is used extensively in digital advertising to optimize ad spend and improve targeting.
Programmatic advertising platforms use AI to purchase ad space in real-time, targeting specific
demographics at the optimal time and location, and adjusting bids automatically to maximize the
ad's effectiveness.

7. PredictiveAnalytics

46
AI tools can predict future trends and customer behaviors based on historical data. This
predictive capability allows small businesses to anticipate
marketchanges,adjuststrategiesinadvance,andallocate resources more effectively.

47
 AI helps in optimizing website content for search engines, analyzing keywords, suggesting
content improvements, and providing insights on competitor SEO strategies. This assists small
businesses in maintaining competitive search rankings with minimal manual intervention.

8. SocialMediaMarketing:
AI analyzes
socialmediadatatounderstandconsumersentiment,identifytrends,andrecommendthebest times to
post content. It can also help create and managesocialmediaadcampaigns,targetinguserswho are
most likely to engage with the content.

9. VoiceSearchOptimization
With the rise of voice-activated assistants, optimizing for voice search is becoming crucial. AI
helps in understanding the nuances of natural language used in voice searches and optimizes
contentaccordingly to appear in voice search results.

By leveraging AI in these areas, small businesses can enhance their digital marketing efforts,
makingthem more effective and efficient in reaching and engaging their target audiences.

How Ai Is Used For Expansion And Innovation For Small Businesses

Artificial Intelligence (AI) is a powerful catalyst for expansion and innovation within small
businesses, offering a variety of tools and strategies
thatcandrivegrowthandoperationalimprovements.Here'show AI is being used to foster both
expansion and innovation in small businesses across different sectors:

1. EnhancingCustomerExperiences
AI enables small businesses to create highly personalized customer experiences that can
differentiatethem from competitors. For example, AI-driven recommendation engines can
analyze previouspurchasing behavior to suggest products or services that a customer is likely to
buy. Such personalized experiences can increase customer satisfaction and loyalty, directly
contributing to business growth.

2. ImprovingMarketingEfficiency
AI
toolscanautomatemanyaspectsofdigitalmarketing,fromcontentcreationtocampaignmanagement.
For instance, AI-powered platforms can optimize email marketing campaigns by determining the
best times to send emails, segmenting email lists based on user behavior, and even crafting
personalized

48
messages for each
recipient.Thisnotonlysavestimeandresourcesbutalsoincreasestheeffectivenessof marketing
efforts.

3. StreamliningOperations
AI can automate routine and repetitive tasks, such as scheduling, inventory management, and
customer inquiries through chatbots. This automation frees up business owners and their
employees to focus on
morestrategicactivitiesthatcanleadtobusinessgrowthandinnovation.Moreover,AIcanoptimize

49
operational processes by predicting trends and preparing the business to respond effectively,
such as adjusting inventory ahead of predicted demand spikes.

4. Data-DrivenDecisionMaking
AI excels in analyzing large datasets to extract actionable insights, which is crucial for small
businesses that need to make informed decisions quickly. By leveraging AI for data analysis,
small businesses can identify new market opportunities, refine product offerings, and optimize
pricing strategies based on comprehensive market data and consumer behavior patterns.

5. EnhancingFinancialManagement
AI tools help in better financial decision-making by providing predictive analytics for cash flow,
expenses, and revenue forecasts. These insights allow small businesses to make proactive
financial decisions, manage risks more effectively, and secure funding for expansion when
necessary.

By integrating AI into their core operations, small

businessesnotonlystreamlinetheirexistingprocesses butalsoopendoors to new possibilities for
growth and innovation. This transformative potential makes AI an invaluable tool for small
businesses aiming to expand their reach and refine their offerings in the competitive market
landscape.

How Ai Enhances Revenue Growth For Small Businesses

Artificial Intelligence (AI) significantly boosts revenue for small businesses by enhancing
various operational aspects from marketing to customer service. Here's a summary of how AI
drives revenue growth:

1. Optimized Marketing Campaigns: AI analyzes customer data and market trends to tailor
marketing efforts, improving engagement, conversions, and sales through personalized email
marketing, social media campaigns, and online ads.

2. Enhanced Customer Experiences: AI personalized shopping experiences by recommending

products based on customer behavior, enhancing satisfaction and loyalty, which encourages
repeat business and increases customer lifetime value.

3. Increased Operational Efficiency: AI

automatesroutinetaskslikeinventorymanagementandcustomer inquiries, freeing up resources for
strategic revenue-generating activities and reducing human error.

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4. Data-Driven Decision Making: AI provides valuable insights by analyzing extensive data,
helping identify profitable customer segments and optimal pricing strategies

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4.6 Interview Questions for Marketers

Section 1A: (Audience introduction, demographics and views)

1. Tell me about your background and what you do in your work, as well as how it relates to
digital marketing?

In my role as a Content Writer at ALM Creative Studios, I create engaging and persuasive
content for various digital platforms such as websites, blogs, and social media. I collaborate with
clients to understand their brand identity, target audience, and marketing goals. By crafting
compelling content that aligns with their brand voice and resonates with their audience, I
contribute to their digital marketing strategies and help drive brand awareness, engagement, and
conversions.

2. Do you have any experience with working on automation in digital marketing?

Yes, I have experience working with automation in digital marketing. I have utilized tools such
as email marketing automation platforms to streamline and personalize email campaigns,
ensuring timely and relevant communication with customers. I have also worked with social
media scheduling tools to automate the posting of content, ensuring consistent online presence
and optimizing engagement.

3. Where or how did you acquire your knowledge, and how many years of experience do you
have? (AI and Machine learning)

I acquired my knowledge through a combination of formal education, practical experience, and

continuous self-learning. In addition to my online certificate in Content Marketing and SEO from
SEM RUSH, I have a degree in Marketing with a focus on digital marketing strategies. I have
been working in the field for over four years, constantly staying updated with the latest industry
trends, attending webinars, participating in online courses, and experimenting with new tools and
techniques.

4. How do you believe the connection between businesses and consumers will evolve as a result
of artificial intelligence, and how will this impact your work as a marketing manager?

Artificial intelligence has the potential to revolutionize the connection between businesses and
consumers. AI-powered technologies, such as chatbots and virtual assistants, can provide
personalized and instant customer support, enhancing the overall customer experience. As a
marketing manager, I anticipate that AI will enable us to gather and analyze vast amounts of
consumer data more efficiently, allowing for more targeted and personalized marketing
campaigns. By leveraging AI, we can better understand consumer preferences, anticipate their
needs, and deliver tailored content that resonates with them, ultimately driving higher
engagement and conversions.

5. What decisions are you making today that could be automated and/or aided by AI?

Currently, decisions related to data analysis, campaign optimization, and content personalization
can be automated or aided by AI. For example, AI algorithms can analyze customer behavior
patterns and suggest optimal targeting strategies. AI-powered content recommendation systems
can also help in delivering personalized content to the right audience at the right time. By
automating these processes, marketers can make data-driven decisions more efficiently and focus
on strategic aspects of their work.

Follow-up: How do you envision it evolving over the next few years?

In the next few years, I believe AI will become even more integrated into marketing practices. AI
technologies will continue to advance, allowing for more sophisticated data analysis, predictive
analytics, and automation. This will further enhance personalization, enable real-time decision-
making, and help marketers stay ahead of consumer preferences and market trends.

6. Which AI technologies are being implemented today in your company?

At ALM Creative Studios, we have implemented AI technologies such as chatbots for customer
support, sentiment analysis tools for social media monitoring, and AI-powered analytics
platforms for data analysis and insights generation. These technologies help us streamline
processes, improve customer engagement, and make data-informed marketing decisions.

Follow-up: Have you as a company noticed any improvements after implementing AI in your
marketing?

Yes, we have observed significant improvements after implementing AI in our marketing efforts.
Chatbots have reduced response times and provided instant support to our customers, enhancing
their experience.

AI-powered analytics platforms have enabled us to gain deeper insights into consumer behavior,
allowing us to refine our strategies and optimize campaign performance. Overall, AI has helped
us improve efficiency, personalize our marketing efforts, and achieve better results.

7. Has it been easier to reach your marketing goals after implementing AI in your marketing?

Yes, implementing AI in our marketing has made it easier to reach our goals. By leveraging AI
technologies, we have been able to automate repetitive tasks, improve targeting precision, and
enhance the overall customer experience. This has resulted in increased engagement, higher
conversion rates, and improved ROI on our marketing campaigns.

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8. What does artificial intelligence mean for your marketing management responsibilities?

Artificial intelligence has expanded the scope of marketing management responsibilities. It

requires staying updated with the latest AI technologies, understanding their applications in
marketing, and effectively leveraging them to achieve marketing goals.

It involves data analysis, monitoring AI-driven tools and platforms, and making data-informed
decisions to optimize marketing strategies. Marketing managers need to have a deep
understanding of AI, its implications, and how it can be integrated into their marketing plans to
drive business growth.

9. Which skills do you believe marketing managers should possess to implement best practices in
marketing automation?

To implement best practices in marketing automation, marketing managers should possess the
following skills:

- Strong analytical skills to interpret data and extract meaningful insights.

- Proficiency in using AI-powered tools and platforms for data analysis and automation.

- Strategic thinking to align marketing goals with automation strategies.

- Communication skills to effectively collaborate with cross-functional teams and stakeholders.

- Continuous learning mindset to stay updated with the latest trends and technologies in
marketing automation.

10. How do you think the relationship between firms and consumers will evolve because of AI,
and how will it affect your role as a marketing manager?

AI will play a significant role in shaping the relationship between firms and consumers. As AI
enables personalized experiences, consumers will expect more customized interactions and
tailored content. This will require marketing managers to leverage AI technologies to gather and
analyze consumer data, anticipate their needs, and deliver personalized marketing messages.

Marketing managers will need to adapt their strategies to meet evolving consumer expectations,
embrace AI-driven tools, and focus on building meaningful connections with their target
audience through personalized, relevant, and engaging content.

Interview Questions for AI Experts

Section 1B: (Audience introduction, demographics and views)

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Question 1:

Tell us about your background and what you do in your work and how it relates to Artificial
intelligence.

Answer 1:

As a freelance Software Developer at JeBoulot, I have a Bachelor's Degree in Software

Engineering and an online certificate from UDEMY in Mobile Application Development.

In my work, I primarily focus on developing software applications and solutions that leverage
emerging technologies, including Artificial Intelligence. I have experience implementing AI
algorithms, integrating AI-powered functionalities into applications, and optimizing software
systems using machine learning techniques.

Question 2:

What does AI mean to you?

Answer 2:

To me, AI represents the development and implementation of intelligent systems that can
perform tasks traditionally requiring human intelligence. It involves creating algorithms and
models that can learn from data, adapt to new information, and make intelligent decisions or
predictions. AI encompasses various subfields, such as machine learning, natural language
processing, computer vision, and robotics.

Question 3:

How well do you understand digital marketing, especially the relationship between AI and
marketing?

Answer 3:

I have a good understanding of digital marketing and how AI plays a significant role in
enhancing marketing strategies. AI can analyze large volumes of data, identify patterns and
trends, personalize marketing messages, automate repetitive tasks, and optimize marketing
campaigns. It enables marketers to gain deeper insights into consumer behavior, target specific
audience segments more effectively, and deliver personalized experiences at scale.

Question 4:

Which skills do you believe marketing managers should possess to implement best practices in
marketing automation?

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Answer 4:

Marketing managers should possess the following skills to implement best practices in marketing
automation:

- Solid understanding of marketing principles and strategies.

- Proficiency in data analysis and interpretation to identify actionable insights.

- Familiarity with AI and machine learning concepts to leverage automation tools effectively.

- Technical skills to integrate and configure marketing automation platforms.

- Creativity and the ability to develop engaging and personalized content.

- Strong project management skills to plan, execute, and measure automated marketing
campaigns.

- Continuous learning and adaptability to stay updated with emerging technologies and trends in
marketing automation.

Question 5:

How did you gain experience related to AI, SEO, and Machine Learning?

Answer 5:

I gained experience in AI, SEO, and Machine Learning through a combination of formal
education, online courses, self-study, and practical projects. My Bachelor's Degree in Software
Engineering provided a foundation in AI and machine learning concepts.

Additionally, I pursued an online certificate in Mobile Application Development that included

modules on SEO optimization. I have also engaged in self-directed learning, staying updated
with the latest developments in AI, SEO, and machine learning through industry publications,
online resources, and hands-on projects.

Question 6:

Do you have any experience working with ML and content marketing and other forms of social
media marketing? Follow up on which ones?

Answer 6:

Yes, I have experience working with ML in content marketing and various forms of social media
marketing. I have implemented machine learning algorithms to analyze content performance,
identify user preferences, and recommend personalized content to users. Additionally, I have
integrated ML models to automate social media posting, optimize ad targeting, and track

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campaign performance. I am familiar with sentiment analysis, natural language processing, and
image recognition techniques used in social media analytics and content marketing.

Question 7:

Could you discuss which aspects of digital marketing benefit from artificial intelligence and
machine learning?

Answer 7:

Several aspects of digital marketing benefit from AI and machine learning:

- Personalization: AI enables marketers to deliver highly personalized experiences, tailored

messages, and product recommendations to individual customers.

- Customer Segmentation: Machine learning algorithms can analyze customer data and segment
audiences based on demographics, behaviors, and preferences for targeted marketing campaigns.

- Predictive Analytics: AI can analyze historical data to predict customer behavior, forecast sales
trends, and optimize marketing strategies.

- Content Optimization: Machine learning can analyze content performance metrics and user
engagement data to optimize content creation, improve SEO rankings, and increase conversions.

- Marketing Automation: AI-powered automation tools streamline repetitive tasks, such as email
marketing, lead nurturing, and social media scheduling, improving efficiency and scalability.

Question 8:

What do you think AI will mean for marketing companies, consumers, and society in the long
term? In your opinion, what type of marketing opportunity does AI provide?

Answer 8:

In the long term, AI will significantly transform marketing companies, consumers, and society.
Marketing companies will benefit from increased efficiency, improved customer targeting, and
enhanced decision-making capabilities. Consumers will experience more personalized and
relevant marketing messages, leading to better overall experiences.

From a societal perspective, AI-driven marketing can contribute to economic growth, job
creation, and the evolution of customer-centric business models. AI provides the opportunity for
marketers to deliver hyper-personalized experiences, automate routine tasks, and gain deeper
insights into consumer behavior, enabling them to drive better results and build stronger
customer relationships.

Question 9:

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In your opinion, how well do marketers comprehend online infrastructures and/or other assisting
AI tools and platforms?

Answer 9:

Marketers' comprehension of online infrastructures and AI tools/platforms varies. Some

marketers have a strong understanding of digital ecosystems, data analytics, and AI technologies,
allowing them to leverage online infrastructures and AI tools effectively. However, there is still a
learning curve for many marketers, particularly those who are less familiar with technical
aspects. Continuous education, training programs, and collaboration with software developers
and AI experts can help marketers enhance their understanding and maximize the potential of
online infrastructures and AI tools.

Question 10:

How do you believe the connection between businesses and consumers will change as a result of
artificial intelligence?

Answer 10:

Artificial intelligence will reshape the connection between businesses and consumers in several
ways. With AI, businesses can offer personalized experiences, tailored recommendations, and
proactive customer service.

AI-powered chatbots and virtual assistants enable 24/7 interaction, addressing customer inquiries
and resolving issues promptly. AI-driven analytics provide businesses with deeper insights into
customer preferences and behavior, helping them deliver relevant and targeted marketing
messages. The connection between businesses and consumers will become more dynamic,
interactive, and data-driven, fostering stronger relationships and customer loyalty.

Question 11:

What is the most significant barrier to future AI development for marketing purposes?

Answer 11:

One of the most significant barriers to future AI development for marketing purposes is data
privacy and security concerns. As AI relies on vast amounts of data, including personal
information, it is crucial to ensure that data is handled ethically, stored securely, and used in
compliance with regulations. Maintaining transparency, obtaining consent, and implementing
robust data protection measures are essential to build trust with consumers and address concerns
related to privacy. Overcoming these barriers will be vital for the continued development and
adoption of AI in marketing.

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4.7DIGITAL MARKETING
4.7.1Meaning:

Digital Marketing (also Online Marketing, Internet Marketing or Web Marketing) is a collective
name for marketing activity carried out online, as opposed to traditional marketing through print
media, live promotions, tv and radio advertisement.

The rapid growth of Digital Marketing Industry is a direct consequence of the global
phenomenon that is the Internet, and effectiveness of Digital Marketing channels in generating
revenue and awareness. Compared to traditional methods of advertising, Digital Marketing
offers rather realistic costs (particularly important for small- and medium-size businesses and
start-ups), accurate targeting and excellent reporting.

4.7.1 Types of Digital Marketing

In normal outbound marketing, we will use pull and push marketing strategy. Like that in digital
marketing also pull and push are types.

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In push digital marketing the marketer sends a message without the recipient actively seeking the
content, such as display advertising on websites and news blogs. Email, text messaging and web
feeds with customized

Contents can also be classed as push digital marketing when the recipient has not actively sought
the marketing message. Push marketing allows you to target your demographics and use your
marketing dollars to promote your product to the people you know are interested in what you
have to sell. A push marketing campaign can be more expensive when it comes to upfront costs,
so you really need to be sure that your marketing is going to reach the right people at the right
time. Behaviour targeting is good example for push digital marketing.

In Pull digital marketing includes blogging, email marketing, social media, info graphics and
other forms of visual messaging and search engine optimization (SEO). A pull marketing
campaign also includes public relations or other ways of reaching out to potential or already
realized customers who you want to keep engaged. While a pull marketing campaign can be less
expensive to get started, you will incur costs in other ways. For example, if you are running a
social media campaign, you will need to hire someone to manage your social media and respond
to people who leave comments or ask questions. Social media gets people talking and that has a
major impact on sales. Pull marketing also requires a greater investment in time, but it gives you
more ability to entertain your customers and educate them about your company. But don't get
confused by seeing Email in push and pull, there is a difference. If marketer is sending emails
with customized content or banners to specific group of customers is push digital marketing. If
marketer is sending emails with the same content or banner to all customers is pull digital
marketing.

4.7.2 DIGITAL MARKETING CHANNELS:

1. SEO (Search Engine Optimization):

Search engine optimization (SEO) is the process of affecting the visibility of a website or a web
page in a search engine's "natural" or un-paid ("organic") search results. SEO may target
different kinds of search, including image search, local search, video search, academic search,
news search and industry-specific vertical search engines.

As an Internet marketing strategy, SEO considers how search engines work, what people search
for, the actual search terms or keywords typed into search engines and which search engines are
preferred by their targeted audience. Optimizing a website may involve editing its content,
HTML and associated coding to both increase its relevance to specific keywords and to remove
barriers to the indexing activities of search engines. Promoting a site to increase the number of
back links, or inbound links, social book marking, directory submission is the SEO tactic.

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 SEO OR
ORGANI

1.1 Directory submission

It is a part of SEO (Search Engine Optimization) off page work. Directory Submissions is a
process of submitting your Website URL to theme related Directory like if your site is Health
Related you should Submit your site URL to Health related directories sites for getting Back link
from them.
Types of Directories:–There are basically three types of Directories Submissions

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 1. Paid or Featured Web Listing: – In this type of Directories Submission the owner of
Directories Site Will Charge for Submission and your link will approved hand to hand or within
24 hours you will get fast back links from this type of submission. Some sites offer this package
for yearly or lifetime.

2. Free or Regular Web Listing: – It is free for Directory Submission no one charge for free or
regular submission but there is no guarantee for getting approved your link by Administrator and
it will take lots of time.

3. Reciprocal Regular Web Listing: – In this a reciprocal link must be submit to your site when
you activate Directory Link then Directory administrator will approve your link.

Types of Directory Submission Ways

1. Automated Directory Submission: – In this way of submission many software and tools are
used to submit directories it will save time and with the help of automated huge amount of
submission done in short time.
2. Manually Directory Submission: – It is done by manually and it will take lots of time to do
directory submissions.

Process of Directories Submissions

1. Open a Directory Site

2. Click on Submit Link

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 3. Choose your link type like Reciprocal Link Free, Regular Link Free and Featured
Lifetime Link.
4. Fill your Site Title
5. Fill your Website URL
6. Fill Owner Name
7. Fill Owner E-mail id
8. Fill if you Choose Reciprocal Link
9. Fill Website Description
10. Choose Category related to your Site
11. Then Click on Submit Link

Then Confirmation Message will Display for your Submission and you will received a
confirmation mail you must confirm it by clicking that link some sties send confirmation mail
some doesn’t send it.

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1.2 Social bookmarking:

Essentially, a social bookmark is a link that people post to social websites for others to see
because they find it interesting, valuable or cool. In a way, social bookmarks are just like the
bookmarks you already have on your private computer. The difference between the two is that
social bookmarks are saved to the web where they can be easily shared while private bookmarks
are saved to your own browser. The idea behind social bookmarking is simple: post links on
popular social bookmarking websites to increase your own traffic and gain an ongoing stream of
new readers and customers. Content that are openly shared with other Internet users literally
have unlimited growth potential. For example, one link can quickly multiply and reach thousands
of desktops across the world if one user passes it on to others, and those users in turn do the
same, and so on. Online marketing has gravitated away from true-and-tried ad and affiliate
marketing toward the rapidly growing world of global social networking. Social bookmarking is
a great traffic-boosting search engine optimization (SEO) strategy because it’s easy, effective
and trendy.

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2. SEM (Search Engine Marketing):

Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of
websites by increasing their visibility in search engine results pages (SERPs) through
optimization and advertising.] SEM may use search engine optimization (SEO), which adjusts or
rewrites website content to achieve a higher ranking in search engine results pages, or use pay
per click listings.

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 SEM/PAID

SEM/PAID

There are four categories of methods and metrics used to optimize websites through search
engine marketing.
1. Keyword research and analysis involves three steps ensuring the site can be indexed in the
search engines, finding the most relevant and popular keywords for the site and its products, and
using those keywords on the site in a way that will generate and convert traffic. A follow-on
effect of keyword analysis and research is the search perception impact. Search perception
impact describes the identified impact of a brand's search results on consumer perception,
including title and Meta tags, site indexing, and keyword focus. As online searching is often the
first step for potential consumers/customers, the search perception impact shapes the brand
impression for each individual.
2. Website saturation and popularity, or how much presence a website has on search engines, can
be analyzed through the number of pages of the site that are indexed on search engines
(saturation) and how many back links the site has (popularity). It requires pages to contain
keywords people are looking for and ensure that they rank high enough in searchengine rankings.
Most search engines include some form of link Popularity in their ranking algorithms. The
following are major tools measuring various aspects of saturation and link popularity: Link
Popularity, Top 10 Google Analysis, and Market leap’s Link Popularity and Search Engine
Saturation.
3. Back end tools, including Web analytic tools and HTML validators, provide data on a website
and its visitors and allow the success of a website to be measured. They range from simple traffic
counters to tools that work with log files and to more sophisticated tools that are based on page
tagging (putting JavaScript or an image on a page to track actions). These tools can deliver

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conversion-related information. There are three major tools used by EBSCO: (a) log file
analyzing tool: Web Trends by NetIQ; (b) tag-based analytic tool: WebSideStory's Hitbox; and
(c) transaction-based tool: Tealeaf RealiTea. Validators check the invisible parts of websites,
highlighting potential problems and many usability issues and ensuring websites meet W3C code
standards. Try to use more than one HTML validator or spider simulator because each one tests,
highlights, and reports on slightly different aspects of your website.

4.Whois tools reveal the owners of various websites, and can provide valuable information
relating to copyright and trademark issues.
2.1 Pay per click (ppc):
Pay per click (PPC), also called cost per click, is an internet advertising model used to direct
traffic to websites, in which advertisers pay the publisher (typically a website owner) when the
ad is clicked. It is defined simply as “the amount spent to get an advertisement clicked.”
With search engines, advertisers typically bid on keyword phrases relevant to their target market.
Content sites commonly charge a fixed price per click rather than use a bidding system. PPC
"display" advertisements, also known as "banner" ads, are shown on web sites or search engine
results with related content that have agreed to show ads.
In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site,
PPC implements the so-called affiliate model, which provides purchase opportunities wherever
people may be surfing. It does this by offering financial incentives (in the form of a percentage
of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the
merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents
no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing
programs.
Websites that utilize PPC ads will display an advertisement when a keyword query matches an
advertiser's keyword list, or when a content site displays relevant content. Such advertisements
are called sponsored links or sponsored ads, and appear adjacent to, above, or beneath organic
results on search engine results pages, or anywhere a web developer chooses on a content site.
The PPC advertising model is open to abuse through click fraud, although Google and others
have implemented automated systems to guard against abusive clicks by competitors or corrupt
web developers.
Pay-per-click is calculated by dividing the advertising cost by the number of clicks generated by
an advertisement. The basic formula is:

Pay-per-click = Advertising cost ÷ Ads clicked

There are two primary models for determining pay-per-click: flat-rate and bid-based. In both
cases, the advertiser must consider the potential value of a click from a given source. This value
is based on the type of individual the advertiser is expecting to receive as a visitor to his or her

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website, and what the advertiser can gain from that visit, usually revenue, both in the short term
as well as in the long term. As with other forms of advertising targeting is key, and factors that
often play into PPC campaigns include the target's interest (often defined by a search term they
have entered into a search engine, or the content of a page that they are browsing), intent (e.g., to
purchase or not), location (for geo targeting), and the day and time that they are browsing.
2.1.1 Flat-rate PPC
In the flat-rate model, the advertiser and publisher agree upon a fixed amount that will be paid
for each click. In many cases the publisher has a rate card that lists the pay-per-click (PPC)
within different areas of their website or network. These various amounts are often related to the
content on pages, with content that generally attracts more valuable visitors having a higher PPC
than content that attracts less valuable visitors. However, in many cases advertisers can negotiate
lower rates, especially when committing to a long-term or high-value contract. The flat-rate
model is particularly common to comparison shopping engines, which typically publish rate
cards.However, these rates are sometimes minimal, and advertisers can pay more for greater
visibility. These sites are usually neatly compartmentalized into product or service categories,
allowing a high degree of targeting by advertisers. In many cases, the entire core content of these
sites is paid ads.
2.1.2 Bid-Based PPC:
With the bid-based PPC model, the advertiser is allowed to bid, to compete against similar
advertisers in a private auction. Each of the bidding advertisers lets the publisher know the
maximum amount they are willing to pay for a given ad spot or keyword. The winning
advertisers then pay for each click on their advertisement, based on the amount they bid. The
common practice amongst bid-based PPC websites such as Google Ad Words, is to charge a
small amount more than the next highest bidder.As you can see, Pay per Click can be a
massively effective means of directing targeted traffic to your website, and is relatively
inexpensive. While there is the risk of click fraud, most of the major Pay Per Click providers
such as Google or Yahoo, have employed several automated systems to prevent abusive clicks
by corrupt web developers or competitors out to cost you additional money. If used properly,
you can find new customers with ease using Pay per Click. It might also be beneficial to find a
reputable pay per click company to assist you with your campaigns.

3. SMM (Social Media Marketing):

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Social media marketing is the process of gaining website traffic or attention through social media
sites. Social media marketing programs usually center on efforts to create content that attracts
attention and encourages readers to share it across their social networks. The resulting electronic
word of mouth (eWoM) refers to any statement consumers share via the Internet (e.g., web sites,
social networks, instant messages, news feeds) about an event, product, service, brand or
company. When the underlying message spreads from user to user and presumably resonates
because it appears to come from a trusted, third-party source, as opposed to the brand or
company itself, this form of marketing results in earned media rather than paid media.

3.1 Engagement

In the context of the social web, engagement means that customers and stakeholders are
participants rather than viewers. Social media in business allows anyone and everyone to express
and share an opinion or an idea somewhere along the business’s path to market. Each
participating customer becomes part of the marketing department, as other customers read their
comments or reviews. The engagement process is then fundamental to successful social media
marketing.

3.2 Facebook Marketing

Facebook is the world's mostpopular social network for both businesses and individuals. With
over one billion users, your friends and fans are likely already using the platform and you should
be too. In fact, people are 51% more likely to make a purchase after "liking" a brand on
Facebook. Face book marketing requires a good intellects and unique thinking to make the
campaign effective.

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In face book marketing in fact in visual /web marketing your content speaks a loud that is why
make sure your content should be relevant to your audience and business.

Pros:
Facebook is a low-cost marketing strategy

Marketing activities that would cost thousands of dollars through other channels can be used on
Facebook for a fraction of the cost. This makes it ideal for small to medium businesses with a
limited marketing budget. Larger businesses can also trial marketing concepts and themes
through Facebook before committing to bigger campaigns.

Share basic information about your business

Your Facebook page is a place where you can publicise your business name, address and
contact details, and briefly describe your products and services. You can also talk about your
staff, history, or any other aspect of your business that is likely to attract other Facebook
users and create interest in what you do.

Share pictures and videos from your business

As well as allowing you to post text, Facebook lets you upload pictures and videos from your
business. This can be a powerful way to communicate with customers and potential
customers, allowing them to see your product or service without having to visit your
premises.

Facebook also allows users to 'tag' photos to indicate if a Facebook friend appears in them.
This function can be used to promote your business. For example, a tour operator could post
a photo on their page of a group going white-water rafting, then invite each participant to tag
their image in the photo. Each tagged image will show up as an update on the participant's
Facebook account, where their friends will see it too. This increases the level of interest in
the picture, and your business.

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If you do decide to use tagging, be careful. It can be aprivacy issue, and some Facebook
users are sensitive about being tagged in photographs. For this reason, it is better to ask
participants to do the tagging, rather than doing it on their behalf. Talk to existing and
potential customers

You can use Facebook to 'talk' to existing and potential customers by posting and receiving
messages. But don't use Facebook to aggressively promote your products or services. You'll have
much greater success if you share information related to your business that is actually useful or
interesting to other users. This increases your credibility and promotes your business by building
long-term relationships with other users. For example, a veterinarian could post tips for looking
after pets, timing them according to when particular health issues arise (e.g. ticks in summer).

You should also listen as much as you talk. Paying attention to what the market thinks about
your business, your industry, a product or a marketing campaign can provide valuable insights.

Provide customer support

Customers can post after-sales questions on your Facebook wall, and your staff can answer them
there. This is often more efficient than staff answering phone calls, and allows other customers to
read common questions and answers without having to approach you individually.

Raise brand awareness and promote positive word-of-mouth

You can increase your business's profile on Facebook by encouraging existing and potential
customers to click the 'Like' button on your Facebook page. Once they like your page, your
customers will receive your updates on their wall, where their friends will also see them. This
helps to build awareness of your business, and to associate your friends with your brand.
Customers can also post positive messages about your products or services, shared on their walls
for all their friends to see.

Facebook can steer traffic to your website

You can include a link to your website on your Facebook page. Indeed, many businesses report
that the greatest benefit of Facebook is the extra traffic that it steers to their site. Visitors who
come to the website can be exposed to stronger marketing messages and, often, the option of
buying goods and services. Customers who come to your website from Facebook are likely to be
more receptive than the average visitor, because they already know something about your
business and were motivated to click the website link.

Targeted advertising

Facebook can analyse all the information that millions of users enter into their profiles. As
the owner of a business page, you can pay to use this information to deliver targeted
advertising to a specific group. For example, an outdoor store could use Facebook to

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calculate how many men over a certain age in a certain city have listed 'fishing' as an
interest. Then they could develop an ad for new fishing lures, and pay for it to appear only on
the pages of those people. (Ads appear on the right-hand side pages in Facebook.)

Offer deals through Facebook Places

Facebook Places allows users to 'check in' on mobile devices at a particular place, so that their
friends can see their location on Facebook. Facebook Places also identifies popular places close
to where a user checks in. Businesses can use Facebook Places so that when a user checks in to a
neighbourhood, street or business, they receive a list of nearby businesses offering deals (e.g.
discounts, freebies, loyalty rewards). Businesses that have a Facebook page are automatically
included in the Facebook Places directory.
Cons:

Loss of Control

Facebook was designed as an interactive online forum that encourages members to share
information via photos, video clips, links and written posts. While account owners ultimately
have control of what remains on their public profile, there is little control over who posts
information or what those posts contain. It is relatively easy for a competitor, angry customer or
disgruntled employee to post accusatory comments that are inflammatory, derogatory or
otherwise slanderous to your business on your Facebook wall. Even well-meaning posters may
use language or photos that are not in line with the image you want to maintain for your
business. Maintaining vigilant control over the content that appears on your Facebook page takes
the time and effort of approved content monitors, which can be costly and timeconsuming for
small business owners.

Cost of Maintenance

Content pages must continually be updated with new information that readers will find useful,
beneficial or interesting for Facebook marketing to be effective. This requires development of a
detailed innovative social media marketing strategy a costly investment for small advertising
budgets. Facebook marketing strategies include video product demonstrations, interactive forums
and online contests, all of which must be created, uploaded, monitored and maintained by a
business owner, staff member or social media advertising agency.

Competition

Marketing platforms executed via Facebook are open to easy duplication by competitors. Rival
business owners can easily pose as “friends” or “fans” to gain access to your content. Photos,
artwork and other images posted to your site are easily accessed and reused by visitors and can
show up in other places you may not approve of.

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Professionalism

Social media platforms like Facebook were created to facilitate the casual sharing of information
that may not mesh with the professional reputation you want to establish for your business. For
example, Facebook marketing of a nightclub needs to be vastly different from Facebook
marketing of a doctor’s office or law practice. Care must be taken to develop and maintain a
Facebook presence that reflects your corporate philosophy, or it could place your company at a
disadvantages

Advertising Costs

While basic Facebook pages are free of charge for personal users, business accounts that feature
advertising opportunities come with a price tag attached. This added promotional expense can be
a disadvantage for small business owners.

Negative Content

Communicating with your clients or fans over Facebook sounds friendly in theory, but some
people may use your Facebook page as a venue to write offensive comments or post spam. A
user might even post false allegations about your business on your page for anyone to see. As a
result, your business needs to be monitoring its Facebook page frequently, ideally checking each
individual post. Even if you address these issues quickly, you'll never know how many people
saw the negative comments on the page and will associate that memory with your business.

Subscriptions

Just because someone clicks "Like" on your page does not guarantee that she will see your
updates in her Facebook news feed. In an effort to give users more control over their Facebook
experience, the social networking site allows people to unsubscribe from a page's updates. When
a user unsubscribes from your updates, your new posts will be hidden from her news feed, so she
will only see your posts if she actively visits your page. This makes it impossible to know
exactly how many people are actually viewing your posts in their news feeds, so you cannot
accurately measure impressions.

Time Consumption

Utilizing a Facebook page as a part of your digital strategy is very time-consuming if done right.
In addition to watching out for negative comments, a business should respond promptly to any
questions or positive suggestions posed by customers. Because Facebook is up and running 24
hours a day, posts may accumulate quickly. If a business's Facebook engagement grows, it may
even become necessary to designate an employee strictly to social media duties. This might not
be realistic for some companies, making it unreasonable to properly manage a Facebook page.

Thumb rules:

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  Emphasize on visualization. Rich visuals make the best content and the best timelines.
‘Highlight’ posts to give them the full width of the Face book container. To make it more
attractive.
 ‘PIN’ posts, these posts stay at the top of the feed promoting posts.
 Ensure FB apps have relevant info, your audience is looking for.
 Analyse what works, and what doesn’t work: Face book Insight. Edge Rank. Social bakers.

3.3 Twitter marketing (A game of 140 characters)

Twitter’s flexible, real-time platform allows you to get creative and drive results at the same
time. Whether you’re looking to drive sales, increase brand awareness or launch a product.
Twitter marketing is not much popular than face book but still it has an impact on audience

The very first thing in twitter marketing you need to understand and learn the twitter
terminologies well.

1.HASHTAG

A hashtag is any word beginning with the # sign. People use hashtags to organize conversations
around a specific topic. Clicking on a hashtag takes you to search results for that term.

2. MENTION

Sometimes you want to bring a Tweet to someone’s attention, but you still want all of your
followers to see the message. So instead of a reply, use a mention. Include the @username of
whomever you want to mention in your Tweet, and it will appear in the Mentions section (in the
Connect tab). All @username mentions are clickable and link back to the mentioned individual’s
profile.

3.REPLY

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You can respond to a Tweet by hitting the reply button. When you reply, your response is public,
and will show up in your home timeline and the timeline of the person to whom you are
responding. The reply will also be visible in the home timelines of people who follow both you
and the person to whom you sent the reply. Meaning, someone not in the conversation has to
follow both of the people replying to be able to read both sides of the conversation.

4. RETWEET

You can pass along someone’s Tweet by retweeting it. Just hit the retweet button to send the
original message to all of your followers.

5. LINKS

Twitter’s link- shortening feature allows you to paste a link of any length into the Tweet box and
it will automatically be shortened to 19 characters. This makes it easier to fit long URLs into the
140 character limit.

6. FAVOURITE

You can favourite the tweet for future reference. This is just like an archiving something that’s
really interesting to you.

7. DM (direct message)

You can send private messages to someone, just like an email. For DM, sender and receiver
should be following each other.

Pros:
The targeted market is most probably on Twitter:

Since a very large number of people use social network, there is a high probability that the
interested parties for the product you are advertising is in the virtual world. This is one great
advantage every business should try to make use of because if you are not using social networks
for advertising, then you are missing a large market.

Great way to research market:

With the growing popularity of the internet, market research has become easy. Instead of
spreading questionnaires or asking people oral questions, the use of social networks made it easy
by making it easier to create free surveys and posting the links so that people can participate.
This is a very easy way of doing market research, keeping in mind the fact that the setting up the

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surveys won’t cost money and people can finish those surveys in less time than the hard copy
one.

Growth of social networking:

There is no doubt that the use of social networks is rapidly growing. What this means to business
is that, there are audience on the virtual world than the business could ever reach through any
other type of media. This is in fact one of the main advantages of using Twitter and other social
networks for businesses.

Easier way to pass info:

By just posting a 140 character tweets, a business would be passing more information than it can
do anywhere else. This costs less or almost nothing compared to other modes like sending a mail
or making a phone call. I also don’t know if this is true for everyone else, but I may read lots of
stuff online that I may not read if they were on a hard copy or somewhere else.

Cons:
Spams and viruses:

When the use of the internet world has increased, the potential risks that one can obtain from the
internet have increased as well. What this means is spammers could spam your site or worse than
that, can find access to your information through social networks. Social networks could be
useful, but if not properly used, then they could lead to more problems.

Using for business needs:

Twitter and other social networks are designed to be user friendly. On the other hand, there are
also applications and other aids that make it easier to use. One thing with social networks is that
businesses and individuals do not use it the same way. What this means is that businesses need to
learn how to efficiently and effectively use Twitter and other social networks so that they could
make the use out of it.

Limited space:

I think everyone who used Twitter or paid a little attention to how it’s used knows about the 140
characters thingy. This kind of space or limitation on character is not enough for most business
and this is where learning to effectively and efficiently twitter comes into place. On the good
side, may be this is good, because otherwise people won’t be in the mood to read a whole blog
most of the time.

Streamline nature of twitter:

It’s a common expectation of anyone who follows others on twitter not to follow everything. One

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of the reasons this happens is because the tweets in twitter are designed to stream really quickly
and usually show the latest tweets. So some of times, some of the tweets one makes or a business
makes may lost in the long shuffle of tweets. Like I said before, this calls for learning to use
twitter effectively.

Thumb rules:
 Remember, you just have 140 characters to play around. Compose your message within 120
characters or less and leave atleast20 characters so that others can re-tweet (RT).
 Utilization of # hash tags Tweets with hash tags get twice the engagement of those
Create a list of #Hash tags relevant to your brand Build a campaign around those #Hash tags and invite
followers to re-tweet.
 Posts with images have double the engagement of those without even though users can’t see them
until they click on them. It creates an interest among the audience.

3.4 Linked In Marketing:

LinkedIn is a business-oriented social networking service. Founded in December 2002 and
launched on May 5, 2003 it is mainly used for professional networking. In 2006, LinkedIn
increased to 20 million members. As of June 2013, LinkedIn reports more than 259 million
acquiredusers in more than 200 countries and territories.

LinkedIn allows companies to create professional profiles for themselves as well as their
business to network and meet others. Through the use of widgets, members can promote their
various social networking activities, such as Twitter stream or blog entries of their product pages,
onto their LinkedIn profile page. LinkedIn provides its members the opportunity to generate
sales leads and business partners. Members can use “Company Pages” similar to Facebook pages
to create an area that will allow business owners to promote their products or services and be
able to interact with their customers. Due to spread of spam mail sent to job seeker, leading
companies prefer to use LinkedIn for employee's recruitment instead using different job portals.
Additionally, companies have voiced a preference for the amount of information that can be
gleaned from LinkedIn profile, versus a limited email.

Pros and Cons of social media marketing on LinkedIn

LinkedIn is one of today’s biggest social networks but it’s not exactly what you might call
“strictly social.” LinkedIn provides a great deal of exposure to businesses and can help find new
partners, business opportunities, or employees. Some might even call LinkedIn a social network
for business as it’s used mainly for “professional networking.” As a social platform LinkedIn
incorporates many social aspects, but its main focus is the business world. As a result, many
small business owners join LinkedIn with the hopes of expanding their ventures and creating
new connections that might prove beneficial. But like most things, LinkedIn has its pros and
cons.

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Pros
• The first, most obvious benefit from using LinkedIn comes from the algorithmic
realm of SEO (search engine optimization). It’s yet another avenue that search
engines use to bring businesses in search query results. It’s the perfect tool to give a
business more exposure while also allowing it to expose the most crucial parts of its
business – the mission, the background, the members of the team, etc. Increased SEO
exposure leads to increased web traffic which, in turn, leads to an increased
conversion rate.
• LinkedIn is also a great way to stay up-to-date with the news from your industry or
field of interest. This is a major benefit it keeps you in the current loop, indicates
upcoming trends or big ideas, and provides a ripe stomping ground for sharing
experiences and advice among experts surrounding topics that are important to the
business. These easily accessible resources are invaluable to a company, particularly
smaller ones, due to its low cost and high beneficial value.

• LinkedIn is also a great asset because of the amount of information it gives about a
particular company or business. Similar to Facebook, LinkedIn will tell you all the
major data you need to know about a company as well as give you the professional
profiles of the individuals associated with the business – from employees to
investors. Access to this type of specific data and information allows users to easily
find potential partners or recruit new employees, saving you a lot of time, energy, and
resources.
• LinkedIn Answer also gives users the chance to demonstrate their knowledge and
skills in their respective field to establish themselves as credible experts with vast
knowledge and expertise. In turn, this is beneficial for LinkedIn users as it positions
them as experts and boosts the company’s credibility.

Cons:

• When looking at LinkedIn, it’s also important to be aware of and acknowledge its
cons. One of the major negatives is the way users use LinkedIn as an advertising
megaphone via SPAM so brace yourself for the slew of SPAM coming your way.
• Once established, LinkedIn is a major timesaver. But in the beginning, it requires a
lot of personal time and work version of LinkedIn, but that might not be an option for
smaller companies with a limited budget. to get your connections flowing and
conversations started. Users need to constantly ask others to be introduced to
companies and individuals they are interested in connecting with, which can be
cumbersome at times. Always keep in mind that LinkedIn is a platform for

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 connections and conversations so approach these tasks with the outcome of building a
business relationship in mind. This task can be sidestepped with the paid
• Overall, LinkedIn is a solid platform for businesses and individuals. If you are just
getting started, keep these pros and cons in mind. If you do, your relationship and
experience with LinkedIn will prove beneficial.
• In our internship, we used LinkedIn to grow the professional network of Institute of
Digital Marketing. This institute not only provides knowledge but also do business
with its skill sets. LinkedIn helps in building great professional network and in
getting new businesses. Apart from the workshops and course classes, Institute of
Digital Marketing has some set of people who develops e-commerce websites and
optimizes them. Hence, in order to get business we have used LinkedIn as a major
platform.
• In LinkedIn groups, there will be discussions going on every time. So, we have
created a LinkedIn group and started discussions on various topics on digital
marketing. In the beginning the results were very slow since LinkedIn is strictly a
professional network and the targeted people might not Show much interest here. As
it goes on, our discussion has got a wide popularity with students from different
colleges asking questions and actively participating in the discussion.

With this growing popularity on LinkedIn, slowly business started coming in. in the beginning
only small projects used to come like landing page creation, content creation, blog postings etc.
There were two big projects came during my internship tenure from Dharani Computers and The
Suntech Corporation for developing and managing the website and do search engine
optimization for them.

3.5 Pinterest:

It is a visual discovery social network. It is a way of sharing images of anything, from fashion to
pets to pot plants. You can create your own online pinboards to suits any theme and share it with
likeminded people.

Pinterest completely revolves around the premise of being creative and visual. 70% users are
female and aged between 25 and 44. So if you are targeting women pinterest is the right
platform. Pinterest is now one of the top 10 social networking sites tracked by Hit wise.

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How brands can use pinterest

Pinterest does not encourage product pushing, this means brands must look at crating boards
that are culture and lifestyle related. You can create boards on trends, behind the scenes,
preliminary sketches for products.

3.6 Instagram:

Instgram, the new revolutionary photo-sharing program, making it easier than ever to share your
best pictures with the world. The social media program allow you to upload, add digital filters,
and then post your pictures on your Instagram-feed, as well as other social networking sites. You
can connect your Instgram account with Facebook, Twitter, Tumblr, Flickr,Foursquare and your
email account. This makes it easy to share your pictures on multiple platforms all at once.

When it comes to brands and businesses, Instagram goal is to help companies to reach their
respective audiences through captivating imagery in a rich, visual environment. Moreover,
Instagram provides a platform where user and company can communicate publicly and
directly, making itself an ideal platform for companies to connect with their current and
potential customers.

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3.7 Google +:

Google has described Google+ as a "social layer" that enhances many of its online properties,
and that it is not simply a social networking website, but also an authorship tool that associates
web-content directly with its owner/author. It is the second-largest social networking site in the
world after Facebook. 540 million monthly active users are part of the Identity service site, by
interacting socially with Google+'s enhanced properties, like Gmail, +1 button, and YouTube
comments.In October 2013, Google counted 540 million active users who used at least one
Google+ service, of which 300 million users are active in "the stream".

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Pros:
With most marketers comfortable with using Facebook for their primary social media marketing
tactics they quite often don’t see the other opportunities. Here are some compelling reasons to
register and start using a Google+ page to complement your Facebook page, your social media
and digital marketing activities.

Google+ hangouts

Google+ hangouts have been an important part of the Google+ platform since day one. They
allow you to create online meetings that are limited to 10 active users but it allows you to stream
YouTube video to an unlimited number of viewers. Hangouts provide a way to engage with
small groups of customers that you may want to share important information and/or educate.

No update filtering

Google doesn’t need to make money from Google+ as its major revenue (over $30 billion) is
from its Google ad words and search advertising. It doesn’t need to force you to pay to be visible
on Google+. Facebook has increasingly applied its Edge rank technology that filters the updates
that are seen by people that have liked your brand’s “Facebook page”. Some research shows it at
less than 15% and shrinking. This is so they can force you to spend to advertise on Facebook to
get attention. It has become “pay to play” Google plus does not filter (censor) your updates to
followers that are following your page.

No ads

Point two leads to another advantage. There are no annoying advertisements on Google plus. No
distractions and no one wanting to sell you weight loss or dating services.

Social signals

Google wanted to enhance its search engine capabilities by having humans vote on what content
they liked. (That is the Google+ button). This is now built into Google’s search algorithms to
ensure that Google remains relevant on the web. This makes certain that your content is
receiving votes (social signals) when you are participating on Google+.

Search visibility

By participating on Google plus you are increasing the visibility of your brand. Ever searched for
a brand or business and noticed what comes to the top of the rankings? It is all the major social
networks that appear on the first page. Also what should be considered is the importance of
securing your brand name on Google+, which is an important part of building your online digital
assets.

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It is the second largest social network

Google plus is no longer something to be ignored with over 600 million registered users and
over 350 million active monthly users. Many of your customers are now on Google+. That on its
own should be enough to make you motivated to participate. You do need to establish a
marketing beachhead on this significant platform.

Local marketing

Google has removed “Google Places” and now has created a “Google+ Places Page”. This means
that customers who are on Google+ can leave reviews for your business there. This turns up on
local search results. Now that is something you shouldn’t ignore if local location marketing is
vital for your retail store or business.

Integration with other Google properties

Google built Google+ from day one to be integrated into its other web properties. They consider
it as being “core” to its entire online strategy so it is woven into Gmail, the Chrome browser,
Picasa and YouTube. This integration will lead to more effective marketing over time.
Cons:

Google Plus still has Relatively Low Reach

Google Plus still serves a much smaller market than Twitter and Facebook, and it is not
surprising that many customers cannot be reached through Google Plus. As such, many potential
customers will not see or be interested in your company’s Google Plus content on your business
page because they don’t want to use Google Plus.

Google’s Poor Social Media Track Record

This is a legitimate risk factor. Many of Google’s past forays into social media like Buzz and
Wave not only failed, but failed with scandals and controversy. There is a fair amount of
scepticism whether or not Google Plus is just another house of cards waiting to collapse, even
after several years of operation.

3.8 You tube

YouTube is a video Social Networking site, and the 2nd most popular search site on the Internet
after Google, who owns YouTube. YouTube video watching is a significant activity on the
Internet, with over 1 billion visits to YouTube daily and over 100 million videos watched daily.
And it's easy for anyone who sees your video to rate it and share it with his Social Network.

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Pros:
Vast Audiences for your Video

The success of any business depend upon its visibility and youtube gives you that very much
required exposure with little or no effort at all. It is just the matter of selection of uploading your
video under right place, under right category. So it is very easy and more likely to reach masses
when you use youtube for your videos, and hence chances of clever video to grab viewers’
attention and go viral, is quite high on youtube, when self-hosted videos(websites). Anybody can
embed videos on their websites, blogs etc. and if good, your video will also be approachable
from outside of youtube. In case you want your video to be viewed by selected number of
people. You can do that by making it private.

Save Dollars with Free Video Hosting

If you are planning to host your videos on your own video hosting server or thinking about
getting licence from a video platform then you have to take in account, this extra burden of
dollars on your wallet. Though Google don’t promote commercial video sharing but has now
made an amendment in the terms and conditions for sharing original contents of brands. It is one
time investment and you would be happy to upload your content on YouTube as you are still
saving the additional design and functional costs. Hence, if you compare the current cost for
licences of video platform YouTube brand channel is a smart bet.

The ease to use it

Though we all get motivated enough to cross all hurdles and do hard work, when we decide to do

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some serious businessbut why to choose a harder path when similar results can be achieved with
an easy and fair option. This is the reason why YouTube is a favourite option. All you need is to
follow some very basic and simple steps to upload your video(s). Create an account, sign-in,
upload and before you blink you are on YouTube. You can easily upload a video via a flip video
camera or your smartphone within minutes. In fact if user is interested in just watching a video
no registration is required. Yes! It is as simple as that.

Links and Web Traffic

Not only sales but web trafficfor the video (actually website) is also very important for any
business based on web. You don’t have to bring people to visit your video instead YouTube
brings them for you and if you are lucky enough and your content go viral(i.e. your content liked
by (exponentially increasing) high number of people) then if you are on YouTube other website
will embed your video to make themselves more optimized for searches. As mentioned earlier
YouTube is owned by Google who is Father of all search engines also uses its owned sites for
searches so definitely your network is quite strong, when you are on YouTube.

Large Bandwidth and sustainability

YouTube is a dedicated website from the well-established giant Google, and it has its own
dedicated servers to handle hell load of traffic (hundreds of thousands or millions of visitors over
a short period of time). Consider the case when your video goes viral and you start getting
whooping number of hits, then will arise the need of substantial amount of bandwidth to handle
such a heavy traffic. So if you are not using YouTube, you are in trouble, and unfortunately
instead of being happy you would be in a panic situation due to the potential low bandwidth of
your website. Of course, it is wise to use YouTube when the whole world is interested in your
video(s).

Number, length, size of Videos

Today YouTube if the world’s dominant resource and repository for videos and luckily there is
no limit on the number of videos you can upload, which is not possible if you are using some
other licenced video platform. You may say 15 minutes which is the current allowed length of a
video is less for your content. Is it really? Anything effective can be presented even in lesser time
but if you think otherwise then all you need to do is to break your content in different videos
logically and upload them in parts instead of a single video. Is it not cool? For video, 2GB size is
good amount and it is the current size you can upload on YouTube. Basically a standard sized
video will easily fit on YouTube.

Feedback is Important

If we don’t listen to others and analyse their suggestions or comments about our work, we can’t
learn and survive in this competitive environment. YouTube allows viewers to provide

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comments for the videos and hence you are in direct touch with live audiences and potential
customers. Importantly al the comments are emailed to you and in case you want to delete any
comment, you can do it easily.

Easy navigation and supported Formats

There are several ways one can search for videos on YouTube – by keyword, by topic or by
simply scanning the most popular video’s list. If you like the work of some producer, simply
subscribe and no more searching would be required for that producer. YouTube uses Adobe
Flash to play back videos which is a standard format supported by most browsers (IE, Firefox,
Safari, and Opera).

You can upload most popular video formats: .WMV, .AVI, .MOV, and .MPG files which are
automatically converted to flash. People can reach YouTube videos through their mobile devices
as well. Point is, when a popular service is easy and can be commonly used then it is wise to host
your videos on that website.

Cons:
Concept overrides content

Good content is not as necessary as good concept in video-making. To get thousands of views
and drive visitors to your YouTube video, you have to inject a great concept that makes them
almost forget how they were led to the site. Learn how to remix videos and audios and create the
element of surprise. Break down long clips to shorter and bite-sized ones to appeal to a larger
audience. Make your ads outright and amazing. You can use title optimization by using
intriguing headlines that would make them want to find out more about your topic.

Requires more attraction

Users of the Internet usually just scan text-based content to find the information and get to the
core of the content immediately. Realize that in videos, this cannot entirely be applied. Viewers
watch videos from beginning to end and not jump from one segment to another to find meaning
in the video. Hence, the intro of your video must be alluring enough to get them continue
watching until the end or until you have made your point get across.

Make it snappy and no longer than three minutes. Else, especially for those with slow Internet
connection and those with shorter attention spans, users will more likely to just press the X
button and move on to the next video.

Fresher uploaded videos result from the search hits

Typically in Google searches, the more aged the blog post is, the more it gets brought up to
the top results page. This is because the page has incurred more backlinks and has increased

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credibility rate online. In comparison, YouTube searches don’t act that way. Rather, it
considers the newest videos as the top-rated hits. There is what’s called the “freshness”
factor in every video. So in order for your videos to rank high and produce the honors, you
must either resubmit or re-upload them whenever you got the time and remove the older
video. Note also that in YouTube, videos only have a shelf life of two days before it is
moved out from the Daily Most Viewed list to the Weekly Most Viewed. So the key here is
to make sure that it’s getting viewed more and more each day, to stay on top. Marketing
through YouTube videos can be one of the effective ways on how to take advantage of the
fact that people are visual. Videos can entertain your viewers or followers than textual
content. However, when done wrong, they will only be bored and may hit on the
Unsubscribe button.

4. ODA (Online Display Ads):

Display advertising is a type of advertising that is located on websites. It can be seen in a wide
range of different formats and contains items such as texts, images, flash, video and audio. The
main purpose is to deliver general advertisements and brand messages to the plus 40 million
people connected to the Internet each month.
It is important to choose the right format because it will help to make the most of the medium. It
is also possible to add:

 Video
 Expendables: flash files that expand when the user interacts on mouse over
 Overlays: ads that appear and that it is possible to remove clicking a close button;
 Sponsorship: including a logo or adding a brand to the design of a web site.
To help to better selecting the right format for type of ad, Interactive Advertising Bureau has
realized a Display Standard Ad Unit Portfolio that works as guideline that can be followed by the
creative.
Standard size
IAB has also created a universal standard for display ad sizes Page text. There are four
dimensions that have been decided as universal and are respectively:

 Banner 728 x 90
 Rectangle 336 x 280
 Skyscraper 160 x 600
 Square 250 x 250

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5. ORM (Online Reputation Management)
Online reputation management coined by the public relation. Basically ORM is a process include
 Undertake the comprehensive research and analysis the online content.
 Track your users’ actions and opinions about brand.
 Reduce your risk of featuring amongst the negative user sentiments.
 Enhance your web presence and create positive perceptions.

6. MMT (Mobile Marketing):

Mobile marketing is marketing on or with a mobile device, such as a smart phone. Mobile
marketing can plague customers with time and location sensitive, personalized information that
promotes goods, services and ideas. In a more theoretical manner, academic Andreas
Kaplan defines mobile marketing as "any marketing activity conducted through a ubiquitous
network to which consumers are constantly connected using a personal mobile device".

Mobile marketing via SMS has expanded rapidly in Europe and Asia as a new channel to reach
the consumer. SMS initially received negative media coverage in many parts of Europe for being
a new form of spam as some advertisers purchased lists and sent unsolicited content to
consumer's phones; however, as guidelines are put in place by the mobile operators, SMS has
become the most popular branch of the Mobile Marketing industry with several 100 million
advertising SMS sent out every month.
6.1Ways of mobile marketing:
MMS

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MMS mobile marketing can contain a timed slideshow of images, text, audio and video. This
mobile content is delivered via MMS (Multimedia Message Service). Nearly all new phones
produced with a color screen are capable of sending and receiving standard MMS message.
Brands are able to both send (mobile terminated) and receive (mobile originated) rich content
through MMS A2P (application-to-person) mobile networks to mobile subscribers. In some
networks, brands are also able to sponsor messages that are sent P2P (person-to-person).
Good examples of mobile-originated MMS marketing campaigns are Motorola's ongoing
campaigns at House of Blues venues, where the brand allows the consumer to send their mobile
photos to the LED board in real-time as well as blog their images online.
Push notifications
Push notifications were first introduced to smartphones by Apple with the advent of
the iPhone in 2007. They were later further popularized with the Android operational system,
where the notifications are shown on the top of the screen. It has helped application owners to
communicate directly with their end users in a simple and effective way. If not used wisely it can
quickly alienate users as it causes interruptions to their current activities on the phone. It can be
much cheaper if compared to SMS marketing for the long run, but it can become quite expensive
on the short run, because the cost involved in application development. Once the application is
download and installed provided the feature is not turned off it is practically free, because it uses
internet bandwidth only. SMS and push notifications can be part of a well-developed inbound
mobile marketing strategy.
APP Based marketing
With the increasingly widespread use of smartphones, app usage has also greatly increased.
Therefore, mobile marketers have increasingly taken advantage of smartphone apps as a
marketing resource. This allows for direct engagement, payment, and targeted advertising.

There is a lot of competition in this field as well. However, just like other services, it is not easy
anymore to rule the mobile application market.
In game mobile marketing
There are essentially three major trends in mobile gaming right now: interactive real-time 3D
games, massive multi-player games and social networking games. This means a trend towards
more complex and more sophisticated, richer game play. On the other side, there are the so-
called casual games, i.e. games that are very simple and very easy to play. Most mobile games
today are such casual games and this will probably stay so for quite a while to come.
Brands are now delivering promotional messages within mobile games or sponsoring entire
games to drive consumer engagement. This is known as mobile advergaming or Ad-funded
mobile game.

37
Mobile web marketing
Google and Yahoo! as on web pages specifically meant for access by mobile devices is also an
option. The Mobile Marketing Association provides a set of guidelines and standards that give
the recommended format of ads, presentation, and metrics used in reporting. Google, Yahoo, and
other major mobile content providers have been selling advertising placement on their properties
for years already as of the time of this writing. Advertising networks focused on mobile
properties, SMS resellers and advertisers are also available. Additionally, web forms on web
pages can be used to integrate with mobile texting sources for reminders about meetings,
seminars and other important events that assume users are not always at their computers. In
addition Mobile websites are another aspect of mobile web marketing and can be a tool than can
used to help make purchasing goods and services easier as well as create better communication
opportunities between trades.

QR codes
QR codes allow a customer to visit a web page address by scanning a 2D image with their
phone's camera, instead of manually entering a URL. The resultant URLs typically include
tracking features which would be unwieldy if typed by the customer. Originally approved as an
ISS standard in 1997, Denso-Wave first Developed the standard for tracking automobile parts in
Japan.QR codes have been growing in popularity in Asia and Europe, but have been slow to be
adopted in North America. Some high-profile QR campaigns in the United States have included
billboards by Calvin Klein in Times Square, QR codes forevery SKU in Home Depot and Best
Buy stores, and a scavenger hunt promoting Starbucks and Lady Gaga.Apple pass
bookImplemented as a native app for iOS6, has employed QR codes as one of the ways that the
iPhone (or iPod Touch) users can take a real world action. I.e. scan the Barcode on their
Passbook Pass. In addition to QR codes, the Passbook (application) also supports PDF417 and
Aztec 2D Barcodes.
Bluetooth
The rise of Bluetooth started around 2003 and a few companies in Europe have started
establishing successful businesses. Most of these businesses offer "hotspot" systems which
consist of some kind of content-management system with a Bluetooth distribution function. This
technology has the advantages that it is permission-based, has higher transfer speeds and is also a
radio-based technology and can therefore not be billed (i.e. is free of charge). The likely earliest
device built for mobile marketing via Bluetooth was the context tag of the AmbieSense project
(2001-2004). More recently Tata Motors conducted one of the biggest Bluetooth marketing
campaigns in India for its brand the Sumo Grande and more of such activities have happened for
brands like Walt Disney promoting their movie 'High School Musical'.
Proximity systems

38
Mobile marketing via proximity systems, or proximity marketing, relies on GSM 03.41 which
defines the Short Message Service - Cell Broadcast. SMS-CB allows messages (such as
advertising or public information) to be broadcast to all mobile users in a specified geographical
area. In the Philippines, GSM-based proximity broadcast systems are used by select Government
Agencies for information dissemination on Government-run community-based programs to take
advantage of its reach and popularity (Philippines has the world's highest traffic of SMS). It is
also used for commercial service known as Proxima SMS. Bluewater, a super-regional shopping
Centre in the UK, has a GSM based system supplied by NTL to help its GSM coverage for calls,
it also allows each customer with a mobile phone to be tracked though the Centre which shops
they go into and for how long. The system enables special offer texts to be sent to the phone. For
example, a retailer could send a mobile text message to those customers in their database who
have opted-in, who happen to be walking in a mall. That message could say "Save 50% in the
next 5 minutes only when you purchase from our store." Snacks company, Mondelez
International, makers of Cadbury and Oreo products has committed to exploring proximity-based
messaging citing significant gains in point-of-purchase influence.
Location Based services
Location-based services (LBS) are offered by some cell phone networks as a way to send custom
advertising and other information to cell-phone subscribers based on their current location. The
cell-phone service provider gets the location from a GPS chip built into the phone, or using
radiolocation and trilateration based on the signal-strength of the closest cell-phone towers (for
phones without GPS features). In the United Kingdom, which launched location-based services
in 2003, networks do not use trilateration; LBS services use a single base station, with a 'radius'
of inaccuracy, to determine a phone's location.Some location-based services work without GPS
tracking technique, instead transmitting content between devices peer-to-peer.
User controlled media
Mobile marketing differs from most other forms of marketing communication in that it is often
user (consumer) initiated (mobile originated, or MO) message, and requires the express consent
of the consumer to receive future communications. A call delivered from a server (business) to a
user (consumer) is called a mobile terminated (MT) message. This infrastructure points to a trend
set by mobile marketing of consumer controlled marketing communications.
Due to the demands for more user controlled media, mobile messaging infrastructure providers
have responded by developing architectures that offer applications to operators with more
freedom for the users, as opposed to the network-controlled media. Along with these advances to
user-controlled Mobile Messaging 2.0, blog events throughout the world have been implemented
in order to launch popularity in the latest advances in mobile technology. In June 2007, Air wide
Solutions became the official sponsor for the Mobile Messaging 2.0 blog that provides the
opinions of many through the discussion of mobility with freedom.GPS plays an important role
in location-based marketing.

39
7. EMT (Email Marketing)
Email marketing is directly marketing a commercial message to a group of people using email.
In its broadest sense, every email sent to a potential or current customer could be considered
email marketing. It usually involves using email to send ads, request business, or solicit sales or
donations, and is meant to build loyalty, trust, or brand awareness. Email marketing can be done
to either sold lists or a current customer database. Broadly, the term is usually used to refer to
sending email messages with the purpose of enhancing the relationship of a merchant with its
current or previous customers, to encourage customer loyalty and repeat business, acquiring new
customers or convincing current customers to purchase something immediately, and
adding advertisements to email messages sent by other companies to their customers.
Types of email marketing
Email marketing can be carried out through different types of emails:
Transactional emails
Transactional emails are usually triggered based on a customer’s action with a company. To be
qualified as transactional or relationship messages, these communications' primary purpose must
be "to facilitate, complete, or confirm a commercial transactions that the recipient has previously
agreed to enter into with the Sender", along with a few other narrow definitions of transactional
messaging. Triggered transactional messages include dropped basket messages, password reset
emails, purchase or order confirmation emails, order status emails, reorder emails and email
receipts.
The primary purpose of a transactional email is to convey information regarding the action that
triggered it. But, due to its high open rates (51.3% compared to 36.6% for email newsletters),
transactional emails are an opportunity to engage customers: to introduce or extend the email
relationship with customers or subscribers, to anticipate and answer questions or to cross-sell or
up-sell products or services.
Many email newsletter software vendors offer transactional email support, which gives
companies the ability to include promotional messages within the body of transactional emails.
There are also software vendors that offer specialized transactional email marketing services,
which include providing targeted and personalized transactional email messages and running
specific marketing campaigns (such as customer referral programs).
Direct emails
Direct email or interruption based marketing involves sending an email solely to communicate a
promotional message (for example, an announcement of a special offer or a catalog of products).
Companies usually collect a list of customer or prospect email addresses to send direct
promotional messages to, or they can also rent a list of email addresses from service companies,
but safe mail marketing is also used.

40
 4.8. AIDMA AS AISAS IN DIGITAL ERA
AIDMA widely accepted model describing the psychological process leading up to the
consumer’s decision to purchase a product. This model is similar to AIDA model. The AIDMA
Model was first advocated by Roland Hall, an American economist, around 1920.

According to this model, there are five key processes: Attention, in which the consumer first
notices the product or advertisement, followed by Interest, Desire, Memory, and Action. This
model has been used extensively in the advertising and marketing industries.

Att Int De Me
Act
ract ere sir mo
ion e ry
ion
st
AISAS is a process model of consumers purchasing activities in the Internet age. AISAS is a
consumption behaviour model that has been advocated by Dentsu since 2004. It was developed
to observe behaviours based on the understanding that the Internet has become prevalent, and
that consumers now have access to environments in which they can obtain and transmit
information themselves.

In this model, the key processes are: Attention, in which the consumer first notices the product or
advertisement, followed by Interest. After this, the consumer Searches for information, and then
makes a purchase (Action), after which information is shared with others. In comparison to
“AIDMA,” the psychological process has become more compact, and the Action process has
expanded.

Att Int Sh
Sea Act
ract ere
ion rch ion are
st
These changes are shown how presences in digital are important for brands. Brands can able to
create awareness and internet without digital. But it will not lead to action in current scenario.
Customers need more information in present era; they are information seeker and always search
for best deal. Brands can’t sustain without digital media.

41
Advantages of Digital Marketing
Digital Advertising is increasingly an inherent budgetary component of many organizations
today. Organizations of all sizes use the medium to promote their products and services. So well,
why do so many organizations use the medium? Simply put, it is due to the numerous advantages
that online advertising offers. These are discussed in the paragraphs ahead.

Reach

The ability of the online medium to target a certain demographic of users is one of the greatest
advantages of digital advertising. In addition, the geographical reach of the online medium is far
greater than that of traditional media. It’s not only cost effective to achieve a wider geographic
area but the ads can also be targeted to the desired audience. For example, if an advertiser is keen
on selling his or her products targeted to a certain demographic of people, it is quite possible
through online advertising. Digital advertising has matured to the extent that web publishers,
media agencies and advertisers themselves know the optimal ways and websites for a certain
category of products or services.

Measurement

With various tools becoming available, tracking effectiveness of ad campaigns is becoming

possible today. In other words, measuring Return of Investment (ROI) is increasingly possible
today. Organizations that were previously reluctant to spend online, now realize that the online
medium does offer means to alleviate any such fears. Moreover, when properly designed online
marketing campaigns generate the desired results, advertisers are further encouraged to continue
advertising online.

Interactive and Engagement

The Internet is arguably the most interactive and engaging medium among various others.
Interactive campaigns have become a norm with the power of the online medium. One such
advertisement worth mentioning is the campaign by AXE where the end user could alter the
smile of a woman as he/she liked to i.e. in an interactive framework. The advertisement struck an
instant chord with the youth to which AXE the brand is positioned for Customers are basically
just a click away from the advertisers. In other words, direct response between end users and
advertisers is possible through the online medium.

Time

Through the Internet, an advertiser can reach a desired target group or demographic in a much
shorter time frame. For example, if an advertiser needs to plan some sort of ambush marketing,
the online medium can be an effective means of achieving it. Even otherwise i.e. for regular
marketing campaigns, the total time necessary to complete an online advertising campaign is less
than that of traditional advertising methods.

42
Cost

When compared to traditional forms of advertising, digital advertising is cheaper. Various

payment models are available between the advertisers and publishers. Many a time, advertisers
are charged only when visitors click on their ads. The various payment models are discussed in
detail in the next section.

7.1 Monetary term in Digital Marketing

 Cost –Per- Action (CPA): Cost of advertising based on a visitor taking some specifically
defined action in response to an ad. “Action” include such thing as a sales, transaction, a
customer acquisition or a click.

 Cost- Per -Click (CPC): Cost of advertising based on the number of clicks received.

 Cost- Per-Thousand (CPM): The standard unit for buying or selling Internet advertising.
The thousand stands for ‘thousand advertising impression or views’.

 Pay- Per- Impression: Online advertising where an advertiser pays a pre-agreed price
each time a user clicks on their advertisement. The cost for the click is often negotiated
through auction, with ad placement determined by the relative size of the bid, as well as
other factors.

 Pay-Per-Inclusion: Search engine marketing programs that guarantee web site listing for
specific keyword search term for a fee.

 Pay-Per-Lead: Paying to acquire leads from an outside party at a set rate or amount per
lead.

4.9 DIGITAL MARKETING IMPACT ON REVENUE

GENERATION
Digital marketing is a new trend in marketing, unlike traditional marketing most of companies
not use their own marketing channels for digital marketing mostly it can be outsourced to third
parties like digital marketing agencies like odigma consultancy ltd. Companies like odigma
generating revenue using digital marketing it has great impact on revenue model of these
companies. Spending’s of various companies on digital marketing is a revenue for digital
marketing agencies like odigma.

4.9.1 Digital agencies: types and services

Digital agencies are as varied as the needs of the advertisers and marketers who hire them. At the
high end, for global enterprises, are the agency holding companies with hundreds of full-service

43
digital agencies around the world. There are also boutique and specialty agencies that provide
channel-specific digital marketing services such as mobile messaging programs, social media
marketing, or SEO link-building campaigns. And there are agencies that focus on strategy and
professional services, such as branding or web design. Like any organization, each type of
agency has its own strengths, weaknesses, and culture. Digital agencies also can be differentiated
by their focus on professional services versus proprietary technology platforms. Agencies that
emphasize their professional services capabilities recommend and use third-party technology
such as PPC campaign management platforms, SEO tools, and social media management
platforms to manage their clients’ data and digital campaigns. These agencies view their role as
strategists that can analyse and interpret data to provide actionable results and achieve their
clients’ goals.Agencies that develop and offer proprietary tools view their platforms as a
competitive advantage over third-party toolsets that are widely available. The plethora of digital
channels has left many advertisers drowning in data. By providing technology platforms that are
built and customized to client needs, these agencies believe they are providing unique and
critical automation tools that collect, analyse, and optimize data for their clients.

4.9.2 The Benefits of working with a digital agency

Agencies owned by large media or holding companies can provide the following benefits:

 Diversity of capabilities from co-owned media properties.

 Built-in sister agency relationships and priority referrals.
 In-network efficiencies.

Working with a specialty or boutique agency offers unique benefits as well, including:

 More granular channel strategy and tactical expertise.

 Client access to agency decision makers and top personnel.
 Lower spending minimums

Various surveys showing that spending of companies on digital marketing is increasing every
year, here is survey says

4.9.3. Gartner Survey Reveals Digital Marketing Budgets Will Increase By 10

Percent in 2014
Digital marketing budgets will rise by 10 percent in 2014, following a double digit percentage
increase in 2013, according to a survey of marketing executives by Gartner, Inc. The survey
found that, on average, companies spent 10.7 percent of their annual 2013 revenue on overall
marketing activities, with digital marketing spending averaging 3.1 percent of revenue.

44
These findings are included in Gartner's Digital Marketing Spending report that is based on a
survey of 285 individuals but answering mainly for their entire organization. Respondents
represent organizations with more than $500 million in annual revenue (average revenue $4.4
billion) across eight industries: financial services and insurance, high-tech, communications,
manufacturing, media, retail, government and healthcare. The survey took place from July
through September 2013. The report examines how marketers are allocating their budgets, what
activities are contributing to marketing success and other factors.
"Marketing leaders are securing bigger budgets to define markets, develop offerings, and attract,
acquire and retain customers," said Yvonne Genovese, managing vice president at Gartner.
"Digital marketing is taking an increasing share of the marketing budget with annual digital
marketing operating budgets totaling 3.1 percent of a company's revenue in 2013, as compared
with 2.6 percent in 2012, representing a 20 percent increase."
Eleven percent of respondents said they spent more than half of their marketing budgets on
digital activities in 2013 compared with only 3.0 percent in 2012. Digital marketing represented
an average of 28.5 percent of the total marketing budget in 2013, as compared with 25.5 percent
in 2012.
A further survey finding was that 77 percent of companies have a chief customer officer (CCO)
or the equivalent. Customertouch points include websites, mobile apps, social profiles, directory
listings, on-site search, email interactions, communities, call center and more hence, the
increasing popularity of the role of the chief customer officer to help guide the customer right
through the buying cycle and beyond.
Eighty-one percent of organizations were also found to have a chief marketing technologist in
2013, up from 70 percent in 2012.
When it comes to budget allocation, marketing leaders support a diverse, and increasingly
complex, marketing mix. The survey found that 12.2 percent the biggest share of their digital
marketing budget was allocated to digital advertising in 2013, just as in 2012. However,
marketers continue to wrestle with digital advertising's effectiveness. Industry associations,
advertising agencies, media, technology, and metrics providers and brand advertisers are all
working to address this concern by improving attribution models and cracking down on phony
Web traffic. Design, development and maintenance of the corporate website account for the
second-largest share of digital marketing budgets as the increase of inbound marketing channels
such as social networks, customer forums and the blogosphere creates more traffic on the
corporate website. Digital commerce, social marketing and mobile marketing three activities that
increasingly overlap are closely tied for the third-largest share of digital marketing budgets.
In 2014, marketers plan to make long overdue expenditures for mobile marketing tools and
techniques.
This survey report shows market share of digital marketing budget in marketing budget
increasing every year, we can make money by utilizing the need of digital marketing. By starting
a digital agency you can generate large amount of revenue with less amount of investment.
Odigma also did the same, CEO Advit Sahadev identified the opportunity and started odigma
which stands online digital marketing consultancy which fulfill digital marketing needs of

45
various companies they charge as per their performance and based on fee structures as I
mentioned above.

4.9.4 Digital agency fee structures

Agency free structures vary widely, even within client accounts. It is not uncommon for a client
to compensate their agency using different fee structures for different types of media campaigns.
For example, a common agency fee model for paid media work is percentage of spend.
Typically, an agency will be paid 10-20% of a client’s digital media spend on paid search or
display advertising campaigns. Smaller clients may pay a higher percentage, while enterprise
clients may pay a smaller percentage due to the larger dollar volume of their accounts.Generally
digital agencies like odigma charge their clients for maintaining their digital presence this is how
they make money, necessity of digital presence for companies let the digital agencies to make
money. Different sorts of agencies advertising agencies use different models.

Chapter No 05 Conclusion
The marketing sector has been found to be one of the sectors of the economy with the highest
potential to improve. It is a viable space for development especially through technology (Fagella,

46
2019). Marketing techniques have grown and evolved overtime, including modern technology to
enhance efficiency. Digital marketing has the potential to have a profound impact on individuals,
thanks to technological advancements that enable businesses to produce large quantities of goods
and use digital marketing to expand industries' opportunities to advertise and sell products to
clients (Ali & Manisha 2020).

Furthermore, digital marketing developments are the consequence of combining big data and
scientific research on smart apps. Therefore, data on each individual, and their preferences is
recorded for easy use during marketing procedures. This study aimed to determine the benefits of
digital marketing, particularly, use of artificial intelligence and market automation to improve
market outcomes. Additionally, the effect of digital marketing on company performance was
considered.

The study found that a positive impact of artificial technology, market automation on digital
marketing exists. Like any form of technology, significant improvement was observed in the
marketing companies under study and findings aligned to past literature (Rust, 2020; Mari, 2019;
Huang & Rust, 2021). Marketers have high standards that AI will continue to develop
automation parameters and that automation will gradually take over the majority of marketing
procedures. Marketers today are willing to learn how to improve digital marketing to touch on
every customer and clearly express their desires.

Nevertheless, marketers also expressed concern and, in some cases, an inability to comprehend
the form of control the organization keeps over its efforts when AI automation is deployed to its
fullest extent. Marketing managers who have not yet grasped the concept of AI technology may
find it costly and unnecessary to include this technology into their marketing systems.
Furthermore, some marketers are also convinced that AI cannot comprehend human intelligence.
Something that AI experts also agree upon. While they appear to feel that automation is making
their work and lives easier and will continue to solve problems, they are concerned about losing
control over their campaigns. The assumption that AI expertise may significantly impact the
performance of marketers is not satisfied. The essential AI expertise for automation is viewed as
knowing how well the system behaves by grasping the tool's capabilities. For instance, knowing
how to remain objective as well as how to utilize AI tools, as opposed to comprehending their
basic structure. Therefore, caution is recommended when applying digital marketing methods,
not to surrender full autonomy or control of the marketing structure to technology.

Investigating how AI is employed in digital marketing and its effects can offer light on this
technology and its current applications. The results of this study will provide more insight on the
benefits of AI technology and market automation in the marketing field. With the rise of internet
businesses around the world and enterprises promoting their products and services digitally, it's
critical to explain how artificial intelligence is being used to market to customers and achieve
marketing goals.

47
Marketers who use AI in digital marketing have reported great improvements in their marketing
strategies. Therefore, it has become critical that marketing managers learn the skills of artificial
intelligence to remain competitive and facilitate positive outcomes in their businesses.

The future of marketing relies on the improvement of technology in marketing systems and
structures. It is expected that AI technology will completely take over the marketing sector to
create customer tailored experiences and catapult marketing to obscenely high levels. Therefore,
it should be the desire of every marketing manager to incorporate artificial intelligence and
market automation into their systems because the technology is being accepted globally. The AI
technology is expected to be an economic boost by increasing GDP through investment returns.

The technology is slowly replacing human functions of marketing such as communication,

making it easier to perform and improve on other tasks. The mode of virtual assistant ensures
that every customer relates to the AI in the most human way possible. While this progress should
be monitored closely, it is clear that digital marketing is gradually advancing for the better.

5.1 Recommendations for Future Research

This study has analyzed the importance of AI in digital marketing for companies today, looking
at primary and secondary data to develop a clear analysis of the state of marketing today.
However, the study on AI cannot be fully exhausted in this single paper. This research paves way
for more study. Further studies can be done using different data sets from different regions,
countries or different levels of companies and businesses. Findings from other respondents can
be used to add to the scope of this study. Additionally, customer perspective of the AI and
automation marketing technologies can be assessed by conducting a survey on different
customers about their experience with digital marketing. This will provide an in-depth view of
how technology is affecting the marketing sector in the modern economy.

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 7 Appendix

Appendix A
Interview Questions for AI Experts.
(Audience introduction, demographics & Perspectives)

1. Tell us about your background and what you do in your work as well as how it relates to
Artificial intelligence.
2. What does AI mean to you ?
3. How well do you understand digital marketing, Especially the relationship between AI
and marketing?
4. Which skills do you believe marketing managers should possess in order to implement
best practices in marketing automation?
5. How did you get the experience related to AI, SEO and Machine Learning?

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(Machine learning and status of AI in marketing)

6. Do you have any experience with working with ML and content marketing and other
forms of social media marketing? Follow up which ones?
7. Could you perhaps discuss which aspects of digital marketing are benefiting from
artificial intelligence and machine learning?
8. What do you think AI will mean for marketing companies, consumers, and society in the
long term? In your opinion, what type of marketing opportunity does AI provide?
9. In your opinion, how far do marketers comprehend online infrastructures and/or other
assisting AI tools and platforms?
10. How do you believe the connection between businesses and consumers will change as a
result of artificial intelligence?
11. What is the biggest barrier in future AI development for marketing purposes?

Interview Questions for Marketers

(Audience introduction, demographics & Perspectives)
1. Tell me about your background and what you do in your work, as well as how it relates to
digital marketing?
2. Do you have any experience with working on automation in digital marketing?
3. Where or how did you acquire your knowledge and how many years of experience do
you have?

(AI and Machine learning)

4. How do you believe the connection between businesses and consumers will evolve as a
result of artificial intelligence, and how will this impact your work as a marketing
manager?
5. What decisions are you making today that could be automated and/or aided by AI?

Follow-up: How do you envision it evolving over the next few years?

6. Which AI technologies are being implemented today in your company?

Follow up: Have you as a company noticed any improvements after implementing AI in your
marketing?

6. Has it been easier to reach your marketing goals after implementing AI in your marketing?

7. What does artificial intelligence mean for your marketing management responsibilities?
8. Which skills do you believe marketing managers should possess in order to implement

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 best practices in marketing automation?
9. How do you think the relationship between firms and consumers will evolve because of
AI, and how will it affect your role as a marketing manager?

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