Benefits and Costs of Online Marketing

Benefits:

Cost Effective: Online marketing is, hands down, the more cost effective form of marketing as compared to traditional forms of marketing. Businesses do not need to spend a handsome amount money and resources on advertisements on TV, radio, newspapers, and magazines and only reach out a few people. Rather, online marketing is just about setting-up a website and engaging in search engine advertisements. Companies can engage in the skills and resources of an internet marketing company to help make their brand known throughout the internet users. All of these strategies together is still much cheaper than the advertisements in traditional platforms.

Global Reach: As all the marketing is being executed on the internet, people from across the world get to hear about the company. Everyone, including your target and non-target audience, can see your brand and business when they search for a general keyword.

Personalized: Online marketing brings personalized and tangible results by adjusting the campaigns through conducting consumer profiles and consumer behavior analysis. It is easy to make adjustments and listen to customer feedback directly through online and social media platforms and therefore will allow you to instantly make adjustments to your product and advertising campaigns.

Costs:

Data Salvo: Internet is flooded with information, and the users are at a loss in how to deal with it. They may not be interested in shopping or making online transactions in the internet as they have other things in mind. Due to this, users tend to ignore internet advertising and go straight to the result that they want. This will result in less traffic to the business’s website and ultimately lesser revenue.

Competition: As mentioned earlier, the internet is flooded with information which implies that lots of other businesses are present on the internet too. That means more and tougher competition. Some competitors may even exploit the pay-per-click advertisements by continuously clicking on the ad. This will lead to the brand needing to pay huge amounts of money to the search engine provider and result in unnecessary cost to the company.

Nevertheless the benefits outweigh the cost as it is still way more expensive to go through traditional marketing. It is also very difficult to make changes to the advertising campaign, making this form of marketing also inflexible.