Chapter 1

Introduction to Digital Marketing

What is digital marketing?

• Digital marketing can be described as actively promoting products

and services using digital distribution channels as an alternative to the
more traditional mediums such as television, print and radio.
• Digital marketing is the act of promoting and selling products and
services by leveraging online marketing tactics such as social media
marketing, search marketing, and email marketing.
• Different websites, mobile devices, social media, search engines, and
similar channels are used in digital marketing.
Benefits of Digital Marketing
Origin of Digital Marketing..

• The term Digital Marketing was first used in the 1990s.

• The digital age took off with the coming of the internet and the development of
the Web 1.0 platform. The Web 1.0 platform allowed users to find the
information they wanted but did not allow them to share this information over
the web.
• In 1993, the first clickable banner went live, after which HotWired purchased a
few banner ads for their advertising. This marked the beginning of the transition
to the digital era of marketing.
• Yahoo was launched in 1994. Also known as "Jerry's Guide to the World Wide
Web" after its founder Jerry Yang, Yahoo received close to 1 million hits within
the first year.
• This prompted wholesale changes in the digital marketing space, with
companies optimizing their websites to pull in higher search engine
rankings. 1996 saw the launch of a couple of more search engines and
tools like HotBot, LookSmart, and Alexa.
• 1998 saw the birth of Google. Microsoft launched the MSN search
engine and Yahoo brought to the market Yahoo web search.
• The digital marketing world saw its first steep surge in 2006 when
search engine traffic was reported to have grown to about 6.4 billion
in a single month.
• Then came Web 2.0, where people became more active participants
rather than remain passive users. Web 2.0 allowed users to interact
with other users and businesses.
• As a result, information flow volumes –including channels utilized by
digital marketers- increased manifold, and by 2004, internet
advertising and marketing in the US alone brought in around $2.9
billion.
• Soon, social networking sites began to emerge. MySpace was the first
social networking site to arrive, soon followed by Facebook.
• Statistics collected by the Marketing techblog for 2014 show that
posting on social media is the top online activity in the US.
• The average American spends 37 minutes a day on social media.
• 99% of digital marketers use Facebook to market, 97% use Twitter,
69% use Pinterest and 59% use Instagram.
• 70% of B2C marketers have acquired customers through Facebook.
67% of Twitter users are far more likely to buy from brands that they
follow on Twitter. 8
• 3.8% of luxury brands have a presence on Pinterest.
Evolution of Digital Marketing – The Timeline

The 90s
• Archie, the first search engine, debuted in the early 1990s, heralding
the birth of search. SEO, or Search Engine Optimization, quickly
followed.
• The first clickable web-ad banners were introduced in 1994. The first
identifiable social media site was launched in 1997, with 3.5 million
users. In the 1990s, a slew of websites still in use was found, including
Google and Yahoo's web search, both of which debuted in 1998.
The Millennial Generation
• Many new sites were launched in the 2000s as the economy
recovered from the boom, including the beginnings of LinkedIn in
2002, Myspace and WordPress in 2003, and Facebook in 2004. In the
early 2000s, mobile text messaging marketing became increasingly
popular.
The Mobile Era
• The latter half of the decade saw increased marketing and sales, with Amazon's e-
commerce sales surpassing $10 billion. Over the next few years, mobile app
culture expanded with the introduction of WhatsApp, Instagram, and Snapchat to
the digital world.
The Present
• Today, 65% of an individual's digital media time is spent on a mobile device. The
digital advertising industry is now valued at around $200 billion, with Google Ad
Words accounting for 96% of the company's revenue. With an estimated 3.1 billion
online users, social networking has led the digital marketing revolution.
• The rise of bloggers and Instagram has resulted in a $1 billion industry for
influencers, which are anticipated to grow. Digital marketing is expected to grow in
the coming years, with many new developments and changes in this exciting
industry.
Comparison basis Traditional marketing Digital marketing

It is one type of marketing that utilizes media, TV, or

It is one type of marketing that uses the internet and
Definition magazine to advertise any business's services and
social media for advertising businesses.
products.

Engagement Low Relatively high

Conversion Slow Extremely fast
Nature Static Dynamic
Investment returns Not easy to measure Simple to measure
More expensive Less expensive
Effectiveness
Less effective More effective
Targeting Standardized Customized
Tracking Not possible Possible
Reach Local Global

Tweaking Not possible once the advertisement is placed One can change or edit anytime

Results Slow results Quick and live results

Communication It is mostly one-way communication It is a two-way communication

It is not easy to skip the advertisements, as they are bound One can easily skip between advertisements if it does
Interruptions
to the users. not interest them.
Characteristic Features of the Internet
Internet: A Private and Public Channel of Communication
• Internet may be used as both a public platform (e.g., discussion/chat forum and
blog) and a private channel (e.g., e-mail, SMS, and IM)

• Some of the greatest strengths of Internet are:

• It reduces information asymmetry between information seekers (e.g.,
buyers) and information providers (e.g., sellers).
• It reduces distinction between a ‘technical’ and a ‘non technical’ person.
• It allows a free movement of information and connections.
• It encourages lack of control over users of the Internet.
Intranet
• An intranet is a private network that only employees of a company may access.
• It's the most restrictive of the three networks. Intranets, like the Internet, employ
the HTTP protocol over TCP/IP protocol, web servers, and web clients.
• Intranets differ from the Internet in that private servers are not accessible to the
general public.
• The users' limitations are implemented through the usage of an internet firewall.
• Companies use intranet so that they can store and share important documents
and lets teams use private messages and threads to communicate better and
collaborate on projects over a secure network.
• It is only accessible to a small group of people.
• Intranets are mostly used to offer access to data and programs on networked
computers and servers within enterprises and organizations.
Extranet
• An extranet is a type of network that allows external users to access
an organization's intranet.
• An extranet is similar to an intranet, except that it is accessed through
a Web portal.
• An intranet is a private network that is only available to members of
the same group, corporation, or organization.
• Extranets are quickly becoming a popular way for business partners
to securely communicate information.
Internet Intranet Extranet

Internet is open to the public, but An intranet may be accessed via the Extranets are mostly used by
the other two are heavily censored. Internet, although its authentication businesses and organizations to
requires logging in. limit access to secret information.

It is owned by a particular It is owned by single/ multiple

It is owned by no one. company/ organization. organizations.

Everyone who is linked has access to Only members of the organization Only members of the organization
it. have access to it. and external members with logins
have access.

Its goal is to allow members and

Its goal is to provide information all Its goal is to communicate
external members to share
across the world. information within the company.
information.

It is used by employees of the It is used by the members having

It is used by the public.
organization. login information.

It is more cost-effective to utilize. It is less cost-effective. It is also less cost-effective.

Web 1
• Web 1.0 is the ancestor of the internet that we use today.
• It was a static web, where users could only read or view the content and had no
ability to interact with it.
• Websites were designed using HTML and CSS, and it was a one-way communication
with web pages composed of plain text and images.
• There was no database connectivity and the pages were not interactive.
• The search engines of this time like Yahoo operated as web directories as they were
manually analyzed and categorized by human editors.
• The characteristics of Web 1.0 were limited, there was no social media or user-
generated content.
• Some examples of popular websites in the Web 1.0 era are Britannica, AOL, Netscape
Navigator and Mosaic.
Web 2.0
• The term Web 2.0 describes World Wide Web websites that emphasize user-generated content, usability
and interoperability for end users.

• Web 2.0 technology facilitates various activities some of which include:

• Blogging : user-generated content where entries are made in journal style and displayed in reverse
chronological order.
• Wikis : A website that allows the visitors to add, remove, edit and change content without
registering on the site.
• Folksonomy : It is an Internet-based information retrieval methodology that categorize content
such as web pages, online photographs, and web links.
• RSS : It is a form of web syndication used by websites and weblogs to alert users of a new content
on the web page.

• A network effect is the effect that one user of a good or service has on the value of that product to other
people.
• The larger number of people in a network (or, the higher the usage), the more valuable is the
network.
Web 3.
• Web 3.0 is the future of the internet. It is also known as the Semantic Web as it focuses on the
meaning of data rather than just the data itself.
• It is the next big thing after Web 2.0. The Web 3.0 environment has more advanced features and
applications that provide a more personalized and relevant experience to the user.
• Web 3.0 is characterized by machine-based intelligence, natural language processing, and ontology-
based metadata. It uses web crawling and other types of artificial intelligence to create
comprehensive databases of information that can be easily accessible and understandable by
machines.
• The technologies that power Web 3.0 include Blockchain, Artificial Intelligence, and the Internet of
Things.
• Examples of Web 3.0 sites include Wolfram Alpha, and Twine.
• In summary, Web 3.0 is the future of the Internet that is characterized by advanced technologies
and applications that provide a more personalized and relevant experience to the user.
• It uses machine-based intelligence, natural language processing, and ontology-based metadata to
create comprehensive databases of information that can be easily accessible and understandable.
Web 1.0, Web 2.0 and Web 3.0: The differences and Implications
The Wireless evolution
• 1960’s
• Push to talk radios : used for emergency and military use.
• 1980’s
• Going Cordless: Brick phone was the first cordless communication
device.
• Early 1990’s
• Going Compact: Motorola “Calmshell”. 12.5 million people had cell
phones.
• Late 1990’s
• PC in your pocket
• The palm pilot introduced the idea of touch screen device with
memory card with expensive data plans.