I was recently interviewed on News Central on the topic, Impact of Digitalization on Marketing and Advertising.
Here are a few takeaways:
Digitization is the process of transforming materials or data to digital format while Digitalization is the use of these digitized materials for the purpose of driving business functions (in the context of this conversation).
Advantages of Digitalization
In the use of digitalization for marketing and advertising, there are certain advantages:
- Cost of marketing and advertising is cheaper – Small businesses need not reach too deep into their pockets to run advertising for their products and services.
- Results are more quantitative. You can now answer the question, “Which half of your advertising spend is working for you?”
- Allows for more precise targeting – reach your ideal customer with better precision.
Examples of Use of Digitalization in Marketing
For a long time now, the “quickest” example of marketing using digitalization have been social media marketing, Facebook, Google advertising. Other examples include Facebook/Google Analytics and other data analytics tools and platforms.
Likely Return-on-Investment Scope for Digitization Costs
ROI is looking good for digitalization investments in the long run. However, these returns are only secure within accountability frameworks that ensure they are more quantitative than qualitative. That is to say, it works when you are clear about your objectives, targets and desired outcomes.