Digital Marketing Exam 1

Digital isn’t channel, it is the doorway to every purchase decision. 

• The future is digital- Genz will have $12T of spending power by 2030  

• 77% of shoppers influenced by digital touchprints is Gen Z 

Influence of Digital is 3x the traditional eComm penetration  

• 20% of sales on average come from online  

• 64% of sales is actual digital influence  

• Instore sales = instore sales digitally influenced + instore sales non digitally influenced 

Digital penetration depends on the category: 

1. Toys (40-50%) because of amazon  

2. Apparel and Footwear (30-40%) 

3. Food (10-15%) 

If brands are not visible online, they are invisible to new shoppers: 

57% of shoppers say that they are most likely to discover new brands browsing retailer websites than in-store 

Digital brand content drives in-store decisions: 

• 54% are more likely to be influenced to buy a product because of its content and reviews on a retailer’s website than in-store signage and displays  

• People look at the product online when in-store so if the website sucks they are likely not going buy it 

Omnichannel marketing:

you don’t win instore vs online, you win when both works together and create a holistic consumer experience (can’t separate the two) 

Digital Marketing definition

connecting with consumers through digital channels and experiences to promote a product or a service and create demand  

• Digital marketing leverages smart technology to create more intelligent, personalized and predictive experiences 

Traditional Marketing:

broader, more visible, higher impressions 

• TV advertisements 

• Radio 

• Billboard 

• Magazines 

• Grocery stands/sampling 

• Can’t stop campaign when you want to  

Digital Marketing examples

More measureable, more personalized, companies own data, real time, more flexible 

• Tiktok  

• Google  

• Can stop a campaign at any time (like when you run out of stock) 

*Entry barriers for brands and products have changed dramatically with digital first approach (low entry barrier) 

How did Poppi make it to the top? 

Digital First, Lean into creators, Tiktok, be disruptive, Community first, culturally relevent 

Marketing Funnel:

Represents the consumer journey as they move towards the purchase of your product or service  

• awareness

• consideration

• conversion

Awareness KPIs

Traditional: a lot of tv and radio

Digital: Tiktok, youtube, instagram

Reach: number of unique people who see your content

Impressions: the total times your content was shown (can include repeats)

Views: Number of people who saw your ad or video

Consideration KPIs

• after someone see you, are they going to engage with you?

• Word of Mouth, research, blogs

Engagement rate: How many people interacted (likes, shares, comments, saves)

Click through rate (CTR): % of people who clicked on you ad after seeing it

• (# of clicks/# of impressions or emails) * 100

Time on Site: How long your visitors stay on your site

Conversion KPIs

Take Action/Make a sale

Sampling, Search, email

Conversion rate: % of people who purchase after clicking or visiting

1. (# of sales/# of clicks or visits) *100

   1.  a.Ex. 20,000 people visit your product page and 100 purchase 

Conversion rate = 0.5%, (100/20,000) * 100 

Cost per Acquisition (CPA): How much you spend to get one customer  

1. Spend/# of sales 

   1. Ex. You spend 3,000 on social media and get 25 purchases 

   2. CPA =120, (3000, 25) 

Return on Ad Spend (ROAS): How much revenue you earned for every dollar spend on ads  

1. Revenue/Ad spend 

   1. Ideally you want >1 ROAS (more revenue than how much you spend) 

   2. Avg is $3-7  

   3. New brand is around $1 

   4. Ex. You spend 3,000 on social media and got $2,500 on revenue  

      1. ROAS = 0.86, (2,500/3000) 

**Today’s shopping journey is not longer linear  

Know the consumer: This will be the compass for every decision:

• Where does my consumer interact with brand like mine? 

• What are their hobbies? 

• What is their mindset? 

• What content they consume? TikTok? Instagram? 

• Where do they shop? In-store? Online? 

• Pain points – barriers to purchase? 

• What motivates them? 

Build a persona and create brand proposition that is meaningful to your consumer

Paid Media

Display ads, retargeting, paid social, paid influencers

Owned Media

Website, Social Media Pages, Mobile, Email

Earned Media

Reviews, PR, Social Shares, Influencers (Not paid)

Best digital marketing plans

use all three (POE) to be successful! Today Earned media is a critical piece of the pie connection brands with consumers and culture

Ex. Reese’s Oreo Launch: Be a part of the cultural moments relevent to your consumer. Be agile!