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Oct 25, 2023

What is Digital Marketing and How Does it Work?

Digital Marketing

Digital marketing is a broad term that encompasses all marketing efforts that use an electronic device or the internet. It involves online channels and strategies to connect with potential customers and promote products or services. Digital marketing has become essential for modern business because of the increasing use of the internet and digital devices.


What is Digital Marketing?

Digital marketing refers to any marketing activity that uses digital technologies. It includes various online channels such as search engines, social media, email, websites, and mobile apps. Digital marketing aims to reach a wider audience, engage with potential customers, and drive conversions.

Digital Marketing


Why Do Businesses Need Digital Marketing?

Digital marketing offers several advantages for businesses of all sizes. Here are some reasons why every business should invest in digital marketing:

  • Increased Reach

Digital marketing allows businesses to reach a global audience without geographical limitations. Online channels allow businesses to target specific demographics and interests, ensuring their message reaches the right people.

  • More Cost-Effective 

Compared to traditional marketing methods, digital marketing is often more cost-effective. Businesses can reach a larger audience at a lower cost through online advertising and social media activities.

  • Measurable Results 

Digital marketing provides analytics and data tracking tools that allow businesses to measure the success of their campaigns accurately. This data helps businesses make informed decisions and optimize their marketing strategies.

  • Improved Customer Engagement

Digital marketing enables businesses to interact with customers in real time through social media, email, and other online channels. This engagement can help build brand loyalty and foster long-term customer relationships.

  • Competitive Advantage

In today’s digital age, businesses that do not embrace digital marketing will likely fall behind their competitors. By leveraging online channels effectively, businesses can gain a competitive edge and remain competitive.

online marketing


Digital Marketing vs. Online Marketing

Digital marketing and online marketing are often used interchangeably, but there is a difference between the two terms. Digital marketing encompasses all marketing efforts that use digital channels, including both online and offline channels. In contrast, online marketing specifically refers to marketing activities conducted exclusively online.


Digital marketing is a broad term that encompasses any marketing activity that uses digital channels to reach and engage consumers. This includes both online and offline channels, such as:

  • Online channels: search engines, social media, email, display advertising, etc.
  • Offline channels: digital billboards, SMS marketing, QR codes, interactive kiosks, etc.


Online marketing is a subset of digital marketing that specifically refers to marketing activities conducted exclusively online. This includes channels such as:

Digital Marketing Agency


4 Essential Digital Marketing Channels

To succeed in digital marketing, businesses should leverage various online channels to reach and engage their target audience effectively. Here are four essential digital marketing channels that every business should consider:

  • SEO (Search Engine Optimization)

SEO involves optimizing a website’s content and structure to improve its visibility on search engine results pages (SERPs). By ranking higher on SERPs, businesses can attract organic traffic and increase their online visibility.

  • Social Media Marketing

Social media platforms provide an opportunity for businesses to engage with their target audience directly. By creating compelling content and interacting with users, businesses can build brand awareness and drive customer engagement.

  • Content Marketing 

Content marketing involves creating valuable and relevant content to attract and retain a clearly defined audience. By providing informative articles, blog posts, videos, and/or infographics, businesses can establish themselves as industry experts and gain customer trust and loyalty.

  • Email Marketing

Email marketing involves sending targeted emails to a list of subscribers who have opted in to receive emails from your business. It is an effective way to nurture leads, build customer relationships, and drive sales.


MarTech (Marketing Technology)

MarTech refers to the tools and technologies used by marketers to efficiently plan, execute, and measure their digital marketing campaigns. These tools help automate tasks, analyze data, manage customer relationships, and optimize marketing strategies.

Example of MarTech Tools

Here are some examples of popular MarTech tools used by marketers:


  • Google Analytics: A comprehensive web analytics tool that provides insights into website traffic, visitor behavior, and conversion rates.
  • HubSpot: An all-in-one inbound marketing platform that includes CRM (Customer Relationship Management), email marketing, social media management, content management system (CMS), and more.
  • Mailchimp: An email marketing platform that allows businesses to create targeted email campaigns, automate workflows, and analyze campaign performance.
  • Hootsuite: A social media management tool that enables businesses to schedule posts, monitor social media conversations and trends, track engagement metrics, and manage multiple social media accounts from one dashboard.
  • SEMrush: An SEO tool that provides keyword research insights, competitor analysis reports, backlink analysis, site auditing features, rank tracking capabilities, including keyword position tracking and historical ranking data, and more.

Digital Marketing Tools



In conclusion, digital marketing is a crucial part of today’s business landscape. It offers numerous benefits, such as increased reach, cost-effectiveness, measurable results, improved customer engagement, and a competitive advantage.


By leveraging specific online channels, such as SEO, social media marketing, content marketing, and email marketing, and MarTech tools like Google Analytics and HubSpot, businesses can effectively promote their products or services online.


If you need a full-service digital marketing agency to help your business reach its goals, Cotactic can create a personalized plan for you. Contact us today to learn more!

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