Digital Marketing Versus Retail Marketing? Pros & Cons

Let’s say you run a healthy drink company. Maybe you sell smoothies for people who are on the go. Would you rather buy an end cap at a retail grocery store that will cost you between $15k-$20k and no direct dollar amount tied to the return or would your rather know for sure that every dollar you spend makes you two dollars back? In this case, digital marketing can be a more profitable (and informed) form of marketing for direct-to-consumer (DTC) businesses for several reasons…let’s talk about them!

Spot On (And Ethical) Targeting And Personalized Advertising

Has it ever seemed to you that you just merely said something into the world and then all of a sudden you saw an ad about it? Maybe you were searching for something on another site and it came up as an ad on a completely different site. Some might call that creepy. We call it personalization.

That personalization and ability to target the right folks at the right time is a huge benefit to digital marketing over retail marketing. Digital marketing allows for more targeted and personalized advertising. With the use of data and technology, combined with knowable (and ethical) customer insights, businesses can reach specific demographics and tailor their messaging and offers to individual customers. This targeted approach can lead to higher conversion rates, relevancy scores, lower frequency in ads, and ultimately, more sales.

How Do You Track Digital Return On Ad Spend?

Additionally, digital marketing allows businesses to track and analyze their marketing efforts in real time. This means that businesses can quickly identify what is and isn’t working, and adjust their strategies accordingly. This level of data and analysis is not possible with traditional retail marketing methods. Some might say that after Apple updated its software to iOS 14.5 and Facebook lost a significant amount of its attribution targeting and tracking, that accuracy was dead for digital marketers. That just simply isn’t the case. There are two software systems that have a much longer attribution (getting credit to where it’s due) models and ensure that traceability is as accurate as it can be.

Another advantage of digital marketing is its cost-effectiveness. While traditional retail marketing methods can be expensive, digital marketing allows businesses to reach a large audience at a fraction of the cost. This is especially important for DTC businesses that may not have the same resources as larger, established brands.

Finally, digital marketing allows businesses to reach a global audience. With the use of the internet, businesses can sell their products and services to customers all over the world, without the need for physical storefronts or distribution centers. This can significantly increase the potential customer base for DTC businesses.

In conclusion, digital marketing can be a more profitable form of marketing for DTC businesses due to its targeted, data-driven approach, cost-effectiveness, and global reach. By embracing digital marketing strategies, DTC businesses can increase their sales and reach new customers.

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