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Digital marketing is a component of marketing that uses the digital technologies such as desktop computers, mobile phones, and other digital media platforms to promote products and services.^[2][3]

It has significantly transformed how brands and businesses use technology for marketing since the 1990s and 2000s. As digital platforms became increasingly incorporated into marketing plans and everyday life,^[4] and as people increasingly used digital devices instead of visiting physical shops,^[5][6] digital marketing campaigns have become increasingly prevalent, employing combinations of methods. These methods include search engine optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, content automation, campaign marketing, data-driven marketing, e-commerce marketing, social media marketing, social media optimization, e-mail direct marketing, display advertising, e-books, optical disks and games. Digital marketing also extends to non-Internet channels that provide digital media, such as television, mobile phones (SMS and MMS), callbacks, and on-hold mobile ringtones.^[7]

The extension to non-Internet channels differentiates digital marketing from online marketing.^[8]

Digital marketing effectively began in 1990 when the Archie search engine was created as an index for FTP sites. During the 1980s, the storage capacity of computers had already large enough to store large volumes of customer information. As a result, companies started choosing online techniques such as database marketing rather than relying on limited list brokers.^[9] These databases allowed companies to track customers’ information more effectively, transforming the relationship between buyers and sellers.

In the 1990s, the term digital marketing was coined.^[10] The first clickable banner ad, the “You Will” campaign by AT&T, launched in 1994. Within the first four months, 44% of all people who viewed the advertisement clicked on it.^[11][12] Early digital marketing efforts focused primarily on simple HTML websites and the burgeoning practice of email marketing, which enabled direct communication with consumers.^[13]

In the 2000s, with increasing numbers of Internet users and the introduction of the iPhone, customers began searching for products and making decisions online instead of consulting a salesperson, which created a new problem for the marketing department of a company.^[14] Additionally, a survey conducted in the United Kingdom in 2000 revealed that most retailers had not yet registered their own domain names.^[15] These challenges encouraged marketers to explore new ways to integrate digital technology into marketing strategies. At the same time, pay-per-click (PPC) advertising, introduced by Google AdWords in 2000, allowed businesses to target specific keywords, making digital marketing more measurable and cost-effective.^[16]

The mid-2000s saw the emergence of social media platforms such as Facebook (2004), YouTube (2005), and Twitter (2006). These platforms revolutionized digital marketing by facilitating direct and interactive engagement with consumers. In 2007, marketing automation was introduced as a response to the rapidly evolving marketing climate. Marketing automation is the process by which software is used to automate conventional marketing processes.^[17] Marketing automation helps companies to segment customers, launch multichannel marketing campaigns, and provide personalized information for customers.,^[17] based on their specific activities. In this way, users’ activity (or lack thereof) triggers a personal message that is customized to the user in their preferred platform. However, despite the benefits of marketing automation many companies are struggling to adapt it to their everyday uses correctly.^{[18][page needed]}

Digital marketing became increasingly sophisticated during 2000s and 2010s, when^[19][20] the proliferation of devices capable of accessing digital media led to sudden growth.^[21] Statistics produced in 2012 and 2013 showed that digital marketing continued to grow significantly.^[22][23] With the development of social media in the 2000s, such as LinkedIn, Facebook, YouTube, and Twitter, consumers became highly dependent on digital electronics in their daily lives. Therefore, they expected a seamless user experience across different channels for searching product information. The change in customer behavior improved the diversification of marketing technology.^[24]

Digital media growth was estimated at 4.5 trillion online ads served annually with digital media spending at 48% growth in 2010.^[25] An increasing portion of advertising stems from businesses employing Online Behavioural Advertising (OBA) to tailor advertising for internet users, but OBA raises concerns about consumer privacy and data protection.^[21]

Nonlinear marketing, a type of interactive marketing, is a long-term marketing approach that builds on businesses collecting information about an Internet user’s online activities and trying to be visible in multiple areas.^[26]

Unlike traditional marketing techniques, which involve direct, one-way messaging to consumers (via print, television, and radio advertising), nonlinear digital marketing strategies are centered on reaching prospective customers across multiple online channels.^{[citation needed]}

Combined with higher consumer knowledge and the demand for more sophisticated consumer offerings, this change has forced many businesses to rethink their outreach strategy and adopt or incorporate omnichannel, nonlinear marketing techniques to maintain sufficient brand exposure, engagement, and reach.^{[citation needed]}

Nonlinear marketing strategies involve efforts to adapt the advertising to different platforms^[27] and to tailor the advertising to different individual buyers rather than a large coherent audience.^[28]

Tactics may include:

• Search engine optimization (SEO)
• Social media marketing
• Video marketing
• Email marketing
• Blogging & affiliate marketing
• Website marketing
• Pay-per-click
• Content marketing
• Search engine marketing
• Social media optimization

Some studies indicate that consumer responses to traditional marketing approaches are becoming less predictable for businesses.^[29] According to a 2018 study, nearly 90% of online consumers in the United States researched products and brands online before visiting the store or making a purchase.^[30] The Global Web Index estimated that in 2018, a little more than 50% of consumers researched products on social media.^[31] Businesses often rely on individuals portraying their products in a positive light on social media, and may adapt their marketing strategy to target people with large social media followings in order to generate such comments.^[32] In this manner, businesses can use consumers to advertise their products or services, decreasing the cost for the company.^[33]

One of the key objectives of modern digital marketing is to raise brand awareness, the extent to which customers and the public are familiar with and recognize a particular brand.

Enhancing brand awareness is important in digital marketing, and marketing in general, because of its impact on brand perception and consumer decision-making. According to the 2015 essay, “Impact of Brand on Consumer Behavior”:

“Brand awareness, as one of the fundamental dimensions of brand equity, is often considered to be a prerequisite of consumers’ buying decision, as it represents the main factor for including a brand in the consideration set. Brand awareness can also influence consumers’ perceived risk assessment and their confidence in the purchase decision, due to familiarity with the brand and its characteristics.”^[34]

Recent trends show that businesses and digital marketers are prioritizing brand awareness, focusing more on their digital marketing efforts on cultivating brand recognition and recall than in previous years. This is evidenced by a 2019 Content Marketing Institute study, which found that 81% of digital marketers have worked on enhancing brand recognition over the past year.^[35]

Another Content Marketing Institute survey revealed that 89% of B2B marketers now believe improving brand awareness to be more important than efforts directed at increasing sales.^[36]

Increasing brand awareness is a focus of digital marketing strategy for a number of reasons:

• The growth of online shopping. A survey by Statista projects 230.5 million people in the United States will use the Internet to shop, compare, and buy products by 2021, up from 209.6 million in 2016.^[37] Research from business software firm Salesforce found that 87% of people began searches for products and brands on digital channels in 2018.^[38]
• The role of digital interaction in customer behavior. It’s estimated that 70% of all retail purchases made in the U.S. are influenced to some degree by an interaction with a brand online.^[39]
• The growing influence and role of brand awareness in online consumer decision-making: 82% of online shoppers searching for services give preference to brands they know of.^[40]
• The use, convenience, and influence of social media. A recent report by Hootsuite estimated there were more than 3.4 billion active users on social media platforms, a 9% increase from 2018.^[41] A 2019 survey by The Manifest states that 74% of social media users follow brands on social sites, and 96% of people who follow businesses also engage with those brands on social platforms.^[42] According to Deloitte, one in three U.S. consumers are influenced by social media when buying a product, while 47% of millennials factor their interaction with a brand on social when making a purchase.^[43]

Digital marketing strategies may include the use of one or more online channels and techniques (omnichannel) to increase brand awareness among consumers.

Building brand awareness may involve such methods/tools as:

Search engine optimization techniques may be used to improve the visibility of business websites and brand-related content for common industry-related search queries.^[44]

The importance of SEO to increase brand awareness is said to correlate with the growing influence of search results and search features like featured snippets, knowledge panels, and local SEO on customer behavior.^[45]

SEM, also known as PPC advertising, involves the purchase of ad space in prominent, visible positions atop search results pages and websites. Search ads have been shown to have a positive impact on brand recognition, awareness and conversions.^[46]

33% of searchers who click on paid ads do so because they directly respond to their particular search query.^[47]

Social media marketing is characterized by its constant engagement with consumers, emphasizing content creation and interaction skills. It involves real-time monitoring, analysis, summarization, and management of the marketing process, performed via platforms like Hootsuite or Sprout Social, which support these activities and allow adjustments to marketing strategies based on real-time feedback from the market and consumers.^[48][49] 70% of marketers list increasing brand awareness as their number one goal for marketing on social media platforms.^{[citation needed]} As of 2021, LinkedIn has been added as one of the most-used social media platforms by business leaders for its professional networking capabilities.^[50]

56% of marketers believe personalization content – brand-centered blogs, articles, social updates, videos, landing pages – improves brand recall and engagement.^[51]

Digital Marketing Channels are systems based on the Internet that can create, accelerate, and transmit product value from producer to a consumer terminal, through digital networks.^[52][53] Digital marketing is facilitated by multiple Digital Marketing channels, as an advertiser one’s core objective is to find channels which result in maximum two-way communication and a better overall ROI for the brand. There are multiple digital marketing channels available namely:^[54]

1. Affiliate marketing – Affiliate marketing is perceived to not be considered a safe, reliable, and easy means of marketing through online platforms. This is due to a lack of reliability in terms of affiliates that can produce the demanded number of new customers. As a result of this risk and bad affiliates, it leaves the brand prone to exploitation in terms of claiming commission that isn’t honestly acquired. Legal means may offer some protection against this, yet there are limitations in recovering any losses or investment. Despite this, affiliate marketing allows the brand to market towards smaller publishers and websites with smaller traffic. Brands that choose to use this marketing often should beware of such risks involved and look to associate with affiliates in which rules are laid down between the parties involved to assure and minimize the risk involved.^[55]

2. 

   Display advertising – As the term implies, online display advertising deals with showcasing promotional messages or ideas to the consumer on the internet. This includes a wide range of advertisements like advertising blogs, networks, interstitial ads, contextual data, ads on search engines, classified or dynamic advertisements, etc. The method can target specific audience tuning in from different types of locals to view a particular advertisement, the variations can be found as the most productive element of this method.
3. Email marketing – Email marketing in comparison to other forms of digital marketing is considered cheap. It is also a way to rapidly communicate a message such as their value proposition to existing or potential customers. Yet this channel of communication may be perceived by recipients to be bothersome and irritating especially to new or potential customers, therefore the success of email marketing is reliant on the language and visual appeal applied. In terms of visual appeal, there are indications that using graphics/visuals that are relevant to the message which is attempting to be sent, yet less visual graphics to be applied with initial emails are more effective in-turn creating a relatively personal feel to the email. In terms of language, the style is the main factor in determining how captivating the email is. Using a casual tone invokes a warmer, gentler and more inviting feel to the email, compared to a more formal tone.
4. 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) primarily through paid advertising. SEM may incorporate Search engine optimization, which adjusts or rewrites website content and site architecture to achieve a higher ranking in search engine results pages to enhance pay per click (PPC) listings.
5. Social Media Marketing – The term ‘Digital Marketing’ has a number of marketing facets as it supports different channels used in and among these, comes the Social Media. When we use social media channels (Facebook, Twitter, Pinterest, Instagram, Google+, etc.) to market a product or service, the strategy is called Social Media Marketing. It is a procedure wherein strategies are made and executed to draw in traffic for a website or to gain the attention of buyers over the web using different social media platforms.
6. Social networking service – A social networking service is an online platform which people use to build social networks or social relations with other people who share similar personal or career interests, activities, backgrounds or real-life connections
7. In-game advertising – In-Game advertising is defined as the “inclusion of products or brands within a digital game.”^[57] The game allows brands or products to place ads within their game, either in a subtle manner or in the form of an advertisement banner. There are many factors that exist in whether brands are successful in the advertising of their brand/product, these being: Type of game, technical platform, 3-D and 4-D technology, game genre, congruity of brand and game, prominence of advertising within the game. Individual factors consist of attitudes towards placement advertisements, game involvement, product involvement, flow, or entertainment. The attitude towards the advertising also takes into account not only the message shown but also the attitude towards the game. Dependent on how enjoyable the game is will determine how the brand is perceived, meaning if the game isn’t very enjoyable the consumer may subconsciously have a negative attitude towards the brand/product being advertised. In terms of Integrated Marketing Communication “integration of advertising in digital games into the general advertising, communication, and marketing strategy of the firm”^[57] is important as it results in a more clarity about the brand/product and creates a larger overall effect.
8. Online public relations – The use of the internet to communicate with both potential and current customers in the public realm.
9. Video advertising – This type of advertising in terms of digital/online means are advertisements that play on online videos e.g., YouTube videos. This type of marketing has seen an increase in popularity over time.^[58] Online Video Advertising usually consists of three types: Pre-Roll advertisements which play before the video is watched, Mid-Roll advertisements which play during the video, or Post-Roll advertisements which play after the video is watched.^[59] Post-roll advertisements were shown to have better brand recognition in relation to the other types, where-as “ad-context congruity/incongruity plays an important role in reinforcing ad memorability”.^[58] Due to selective attention from viewers, there is the likelihood that the message may not be received.^[60] The main advantage of video advertising is that it disrupts the viewing experience of the video and therefore there is a difficulty in attempting to avoid them. How a consumer interacts with online video advertising can come down to three stages: Pre attention, attention, and behavioral decision.^[61] These online advertisements give the brand/business options and choices. These consist of length, position, adjacent video content which all directly affect the effectiveness of the produced advertisement time,^[58] therefore manipulating these variables will yield different results. The length of the advertisement has shown to affect memorability where-as a longer duration resulted in increased brand recognition.^[58] This type of advertising, due to its nature of interruption of the viewer, it is likely that the consumer may feel as if their experience is being interrupted or invaded, creating negative perception of the brand.^[58] These advertisements are also available to be shared by the viewers, adding to the attractiveness of this platform. Sharing these videos can be equated to the online version of word by mouth marketing, extending number of people reached.^[62] Sharing videos creates six different outcomes: these being “pleasure, affection, inclusion, escape, relaxation, and control”.^[58] As well, videos that have entertainment value are more likely to be shared, yet pleasure is the strongest motivator to pass videos on. Creating a ‘viral’ trend from a mass amount of a brand advertisement can maximize the outcome of an online video advert whether it be positive or a negative outcome.
10. Native Advertising – This involves the placement of paid content that replicates the look, feel, and oftentimes, the voice of a platform’s existing content. It is most effective when used on digital platforms like websites, newsletters, and social media. Can be somewhat controversial as some critics feel it intentionally deceives consumers.^[63]
11. Content Marketing – This is an approach to marketing that focuses on gaining and retaining customers by offering helpful content to customers that improves the buying experience and creates brand awareness. A brand may use this approach to hold a customer’s attention with the goal of influencing potential purchase decisions.^[64]
12. Sponsored Content – This utilises content created and paid for by a brand to promote a specific product or service.^[65]
13. Inbound Marketing – a market strategy that involves using content as a means to attract customers to a brand or product. Requires extensive research into the behaviors, interests, and habits of the brand’s target market.^[66]
14. SMS Marketing: Although the popularity is decreasing day by day, still SMS marketing plays huge role to bring new user, provide direct updates, provide new offers etc.
15. Push Notification: In this digital era, Push Notification responsible for bringing new and abandoned customer through smart segmentation. Many online brands are using this to provide personalised appeals depending on the scenario of customer acquisition.

It is important for a firm to reach out to consumers and create a two-way communication model, as digital marketing allows consumers to give back feedback to the firm on a community-based site or straight directly to the firm via email.^[67] Firms should seek this long-term communication relationship by using multiple forms of channels and using promotional strategies related to their target consumer as well as word-of-mouth marketing.^[67]

Digital marketing used to rely primarily on self-regulation included in the ICC Code,^[68] which included rules that apply to marketing communications using digital interactive media. However, self-regulation has proved largely ineffective,^[69][70] leading to the consolidation of market power in a few firms, including Google, which has been determined to hold monopolies in search marketing and digital advertising.^[71][72] While self-regulation codes still exist, government regulation is increasing in multiple jurisdictions, including California’s legislation on targeting advertising online.^[73] In Europe, digital marketing is regulated through multiple codes, of which the most important is the Digital Services Act,^[74] which entered into force on 17 February, 2024. Other regulations focus on user privacy and data management such as the General Data Protection Regulation (GDPR).^[75]

Digital marketing planning is a term used in marketing management. It describes the first stage of forming a digital marketing strategy for the wider digital marketing system. The difference between digital and traditional marketing planning is that it uses digitally based communication tools and technology such as Social, Web, Mobile, Scannable Surface.^[76][77] Nevertheless, both are aligned with the vision, the mission of the company and the overarching business strategy.^[78]

Dr. Dave Chaffey, an author on marketing topics, has suggested that successful digital marketing strategies have do digital marketing planning (DMP), which is a three-stage approach: Opportunity, Strategy, and Action. This generic strategic approach often has phases of situation review, goal setting, strategy formulation, resource allocation and monitoring.^[78]

To create an effective DMP, a business first needs to review the marketplace and set “SMART” (Specific, Measurable, Actionable, Relevant, and Time-Bound) objectives.^[79] They can set SMART objectives by reviewing the current benchmarks and key performance indicators (KPIs) of the company and competitors.^{[citation needed]} It is pertinent that the analytics used for the KPIs be customized to the type, objectives, mission, and vision of the company.^[80][81]

Companies can scan for marketing and sales opportunities by reviewing their own outreach as well as influencer outreach. This means they have competitive advantage because they are able to analyse their co-marketers influence and brand associations.^[82]

To seize the opportunity, the firm should summarize its current customers’ personas and purchase journey from this they are able to deduce their digital marketing capability.^[83]

A planned digital strategy is where a company expresses clearly what they are offering customers online e.g., brand positioning. The marketing mix is a framework which can be used to facilitate this.^[84][85]

The third and final stage requires the firm to set a budget and management systems. These must be measurable touchpoints, such as the audience reached across all digital platforms. Furthermore, marketers must ensure the budget and management systems are integrating the paid, owned, and earned media of the company.^[86] The Action and final stage of planning also requires the company to set in place measurable content creation e.g. oral, visual or written online media.^[87]

One way marketers can reach out to consumers and understand their thought process is through what is called an empathy map. An empathy map is a four-step process. The first step is through asking questions that the consumer would be thinking in their demographic. The second step is to describe the feelings that the consumer may be having. The third step is to think about what the consumer would say in their situation. The final step is to imagine what the consumer will try to do based on the other three steps. This map is so marketing teams can put themselves in their target demographics shoes.^[88] Web Analytics are also a very important way to understand consumers. They show the habits that people have online for each website.^[89] One particular form of these analytics is predictive analytics which helps marketers figure out what route consumers are on. This uses the information gathered from other analytics and then creates different predictions of what people will do so that companies can strategize on what to do next, according to the people’s trends.^[90]

• Consumer behavior: the habits or attitudes of a consumer that influences the buying process of a product or service.^[91] Consumer behavior impacts virtually every stage of the buying process specifically in relation to digital environments and devices.^[91]
• Predictive analytics: a form of data mining that involves using existing data to predict potential future trends or behaviors.^[92] Can assist companies in predicting future behavior of customers.
• Buyer persona: employing research of consumer behavior regarding habits like brand awareness and buying behavior to profile prospective customers.^[92] Establishing a buyer persona helps a company better understand their audience and their specific wants/needs.
• Marketing Strategy: strategic planning employed by a brand to determine potential positioning within a market as well as the prospective target audience. It involves two key elements: segmentation and positioning.^[92] By developing a marketing strategy, a company is able to better anticipate and plan for each step in the marketing and buying process.

The “sharing economy” refers to an economic pattern that aims to obtain a resource that is not fully used.^[93] Nowadays, the sharing economy has had an unimagined effect on many traditional elements including labor, industry, and distribution system.^[93] This effect is not negligible that some industries are obviously under threat.^[93][94] The sharing economy is influencing the traditional marketing channels by changing the nature of some specific concept including ownership, assets, and recruitment.^[94]

Digital marketing channels and traditional marketing channels are similar in function that the value of the product or service is passed from the original producer to the end user by a kind of supply chain.^[95] Digital Marketing channels, however, consist of internet systems that create, promote, and deliver products or services from producer to consumer through digital networks.^[96] Increasing changes to marketing channels has been a significant contributor to the expansion and growth of the sharing economy.^[96] Such changes to marketing channels has prompted unprecedented and historic growth.^[96] In addition to this typical approach, the built-in control, efficiency and low cost of digital marketing channels is an essential features in the application of sharing economy.^[95]

Digital marketing channels within the sharing economy are typically divided into three domains including, e-mail, social media, and search engine marketing or SEM.^[96]

• E-mail – A form of direct marketing characterized as being informative, promotional, and often a means of customer relationship management.^[96] Organization can update the activity or promotion information to the user by subscribing the newsletter mail that happened in consuming. Success is reliant upon a company’s ability to access contact information from its past, present, and future clientele.^[96]
• Social Media – Social media has the capability to reach a larger audience in a shorter time frame than traditional marketing channels.^[96] This makes social media a powerful tool for consumer engagement and the dissemination of information.^[96]
• Search Engine Marketing or SEM – Requires more specialized knowledge of the technology embedded in online platforms.^[96] This marketing strategy requires long-term commitment and dedication to the ongoing improvement of a company’s digital presence.^[96]

Other emerging digital marketing channels, particularly branded mobile apps, have excelled in the sharing economy.^[96] Branded mobile apps are created specifically to initiate engagement between customers and the company. This engagement is typically facilitated through entertainment, information, or market transaction.^[96]