Strategy and brand

What is digital marketing

Also known as: online marketing, internet marketing

Rodrigo Fávaro, founder of ROO3
Rodrigo Fávaro Founder of ROO3
Published
The words Digital marketing in large letters on a dark background, with the address roo3.co/marketing
Short answer

Digital marketing is the set of marketing actions carried out through online channels, such as search engines, social media, email, websites, messaging apps and online ads. The difference from traditional marketing lies less in the medium and more in measurement: nearly everything can be tracked, from click to sale, which shows how much each customer costs and where it pays to invest.

Hypothetical example

A physical therapy clinic spent $3,000 a month on flyers and had no idea how many patients came from them. It moved the same amount to ads: $2,000 on Google and $1,000 on Instagram, with every contact arriving by message with its source tagged.

In the first month, Google brought 40 contacts and 12 appointments; Instagram, 10 contacts and 2 appointments. Each appointment from Google cost about $167, and from Instagram, $500. With the numbers in hand, the clinic reshuffles the budget the next month, something impossible with flyers.

The main channels

Channels and what each one does
What it is forHow it is measured
Organic search (SEO)Being found by people already searchingClicks, position and conversions
Search adsShowing up at the moment of search, paying per clickCPC, CPA and ROAS
Social mediaCreating demand and relationshipsReach, engagement and cost per lead
Email and messagingTalking to existing contactsOpens, clicks and replies
Website and landing pagesTurning visits into contacts or salesConversion rate
ContentEducating and attracting the right audienceQualified traffic and leads per content piece

Paid, owned and earned media

A useful way to organize channels is by ownership. Paid media is advertising: fast, predictable and gone the day the budget runs out. Owned media is what the company controls, such as its website, contact list and profiles. Earned media is what others do for the brand: reviews, mentions, shares and links.

The three feed each other. The ad brings the first visit, the site and the list keep the relationship, and a good experience creates the recommendation no ad can buy.

How to build the strategy

What to measure

The most common mistake is measuring what is easy instead of what matters. Likes, followers and impressions show activity, but they do not pay the bills. The metrics that drive investment are the ones that reach revenue: customer acquisition cost, return on ad spend, conversion rate and customer lifetime value.

For that, data has to travel from the ad to the sale. Tools such as Google Analytics, the Google tag and a CRM that records each contact's source close that loop.

Digital marketing with AI

Artificial intelligence is already inside the tools themselves. Google Ads Smart Bidding uses machine learning to optimize for conversions in each auction, and Google Search shows AI generated summaries for some queries.

Google says there is no special optimization for appearing in those summaries beyond good SEO practice. What changes is the weight of quality: generic content loses ground to content with first hand experience and original information.

Frequently asked questions

What is digital marketing?

The set of marketing actions carried out through online channels, such as search engines, social media, email, websites and ads, with the advantage of measuring the result of each action.

What are the main digital marketing channels?

Organic search, search ads, social media, email and messaging, websites and landing pages, and content. The right mix depends on where the audience is.

How is digital marketing different from traditional marketing?

The channel changes, but the big difference is measurement. Online, you can know what each contact and each sale cost, and adjust spending accordingly.

Where should I start with digital marketing?

With the goal and the measurement. Define what counts as a result, set up tracking and start with one or two channels where the audience already looks for what you sell.

How much should I invest in digital marketing?

There is no single number. The starting point is how much the business can pay per customer, which depends on margin and customer lifetime value. From there, test with a controlled budget.

Related terms

Sources
Rodrigo Fávaro

Rodrigo Fávaro

Founder of ROO3, a marketing and technology agency in São José do Rio Preto, Brazil. Builds AI products running in production (Tobia, gerar.app, Pense Mercado) and maintains the AI Benchmark, a public ranking of AI models.

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Marketing you can measure, from the ad to the sale.

ROO3 builds and runs paid media, SEO and websites with real targets, dashboards and numbers. The first conversation is free.