Question

Spending on digital marketing has trended upward in recent years, and with so many individuals using the Internet for extended periods of time, it is easy to understand why. Some organizations spend more than half of their budget on digital marketing. How do you think they justify committing such substantial amounts of money to digital efforts? Do you believe that more companies should invest primarily in digital marketing? What groups or factors would indicate to you that digital marketing does not make sense as an investment?

Answer 1

Answer: Internet has emerged as the major source of information for the people. A large number of the people now have an access to internet and this trend is increasing rapidly. People look on internet for getting the information about the products and services they need. Digital marketing enables the companies to pitch their products and services to these customers who are looking for such information and influence them in the early stages of their decision making process. It is because of this reason that the companies are investing a huge amount on digital marketing and the potential of this channel justifies this investment. It is estimated that the current market share of the online purchases in U.S is 15% of the total value of the commerce in the country and this is going to increase further. Also digital marketing is more cost effective and enables the companies to reach out to their right target customers directly. Looking into the future potential of digital marketing more and more companies need to invest in the digital marketing. The following are some factors that do not make digital marketing as sense able investment

1. Target customers do not use internet for example the old aged people
2. The company does not have a competency in digital marketing.
3. The target customers don’t have access to internet