Why digital marketing is cost-effective

Why digital marketing is cost-effective

The developments in internet technology and access have transformed the way of marketing and there is a huge paradigm shift in the behavior of the customer. 

If we focus on the traditional marketing methods and compare them to digital marketing then we may realize that digital marketing has more potential for success and is more cost-effective than traditional marketing.

The price of newspaper advertisements can fill out the total marketing budget of a company. TV ads cost you thousands of dollars just for 15-20 seconds spot, which is not feasible for most businesses. 

The marketing budget of modern businesses is shifting from traditional marketing to digital marketing. Because of the consistent growth in internet users and time-per-user, it seems the space will continue to grow in the years ahead.

Although digital marketing has been adopted by most businesses, there are still a lot of people who are not sure whether digital marketing is cost-effective…

4 Reasons why digital marketing is cost-effective

Here are some reasons which explain why digital marketing is more cost-effective than traditional marketing.

1. Increase brand awareness at a low cost

Increase brand awareness at a low cost

The first and foremost goal of a business owner is to market their brand and increase brand awareness. Digital marketing can help almost every business to make itself more visible. Many strategies can help you to promote your brand in the market.

Email marketing is one of the low-cost and effective digital marketing channels. Email marketing costs you very less through user-friendly email marketing tools.

Social media marketing is one of the ways which can get you the attention you need, as well as engage with your customers and prospects.

Therefore digital marketing is a new way to save money and to reach a large audience, it increases brand awareness at a very low cost.

2. Measure success and adjust campaign

Measure success and adjust campaign

To gain valuable insights it becomes very important to analyze your campaign. A small digital marketing budget, if consumed with an intelligent data-driven marketing campaign, can get you the reach of a large and relevant audience.

You can increase your conversation rate simply by using these digital marketing strategies such as accurate and data-driven audience selection, matching the right offers and brand tone with the right audience, etc.  

The best part is that you can see where the campaign is not performing well, you can detect at which part the customers lost interest so that you can adjust the landing page or content to be more appealing.

You can even test different versions of ads at a low budget to find out the best-performing one. And if the campaign is performing well then you can stick to it to get better results, as most of the platforms (like Facebook or Google) gather data about your ad performance and improve targeting on their own, over time.

Key performance indicators are traffic, leads, reach, organic search, direct traffic, referrals, conversion rate, cost per acquisition, etc. By measuring these KPIs you can easily evaluate how effective your digital marketing is, and compare between campaigns you are running.

3. Best use of social media

Best use of social media

If you have a small budget and you don’t want to spend much on advertising, you can still promote yourself successfully.

Creating a series of posts on social media that can be a trending topic or related to your business, using the right hashtags, etc. is a highly cost-effective way of marketing. It will help you generate traffic from an audience that is relevant and interested in your topic.

You can market your business or brand just by creating an account on social media handles like Facebook, Twitter, and Instagram which requires very little investment of time, and can help you showcase your business or brand to a potentially large audience.

While it’s true that organic reach on these platforms has declined over the years, there is still a lot to be achieved if you can make engaging content and use the right topics and hashtags.

If you want to reach out outside your loyal customer base, then you must need social media marketing to increase the inbound traffic. With the increase in visibility, there are more chances for your business to get more conversion opportunities.

To establish a connection with your audience you need to share meaningful and eye-catching content, that should be relevant to the users’ needs and interests. You should also try and stay consistent with your posting schedule.

4. Retargeting ads for cost-effective digital marketing

Retargeting ads for cost-effective digital marketing

Retargeting is the process in which a customer who has visited your website and has left the website, is shown your ads on other websites or other platforms.

When a customer visits your website for the first time then there is a high chance that the customer will not buy anything, but only explore the products or services. It usually takes more than one interaction for the visitor to become a customer of that website or app. Here the retargeting strategies come into play.

Also, since this is a small slice of visitors out of the total number of users on platforms like Google or Facebook, it’s quite cost-effective to showcase ads to them repeatedly. And this form of advertisement makes digital marketing more cost-effective than other marketing methods.

According to a report by “Target Marketing”, 68% of digital marketers invest in retargeting marketing.


Keeping in mind all these strategies listed above, it is apparent that digital marketing is typically more cost-effective than traditional marketing.

About the Author:

Tarun is interning with WebKow. He is a computer science graduate who is passionate about writing with simplicity. He loves sports, especially football, and reading.

Leave a Reply