What’s the big difference? It’s in the medium. While traditional marketing focuses on old traditional media like TV, magazines, and radio, digital marketing focuses on digital channels that often exist over the world wide web.
With more and more people using the internet to find information and shop, digital marketing has become a billion-dollar industry. In 2020, advertisers spent approximately 8.45 billion CAD on digital ad spending. According to predictions, this number will surpass the 12 billion mark by 2024. (Source)
But does that mean old traditional marketing methods aren’t relevant anymore? No. Magazines, TV, and radio advertising is as effective as it was 20 years ago. The impact the ads have on a user is the same as before, though it’s also true that the readership & market penetration of these channels are dwindling as we speak.
In our last post, we discussed why digital marketing is important for small businesses elaborating how digital marketing is different from traditional marketing. It’s economical, more affordable, and measurable.
One thing you must notice is using the internet has become part of the daily lives of many all across the world. Even generation x is on the internet most of the time. Clearly, you would want to market your business where the user’s attention is. Right?
Now that it’s clear both traditional marketing and digital marketing have their space in this decade, we must understand the nuances of each to decipher which one is the right fit for your business. Correct?
Pros and Cons of Traditional Marketing
What are the major traditional marketing channels?
Here are the typical channels included in traditional marketing –
- Outdoor Advertising (Billboards, posters, etc)
- Broadcast Advertising (TV, Radio, etc)
- Print Media (Magazines, Newspaper, etc)
- Telemarketing (Phone, Text, etc)
- Direct Mail (Catalogs etc)
- Window display, signs, decals, etc
Pros of Traditional Marketing
Traditional marketing is
Cons of Traditional Marketing
- Hard to measure
- Has no direct interaction with the prospect or customer
Pros and Cons of Digital Marketing
Now, let’s see what digital marketing includes.
What are the major digital marketing channels?
- Social Media (Facebook, Instagram, TikTok, Linkedin, Twitter, Pinterest, Snapchat, etc)
- Content Marketing (Blogs, YouTube Videos, etc)
- SEO (Website SEO, YouTube SEO, Google My Business, E-commerce SEO, Amazon SEO, etc)
- Paid Advertising (Google Ads, Facebook Ads, Linkedin Ads, etc)
- Affiliate Marketing
- Email Marketing
- Influencer Marketing
- Online PR
- Marketing Automation
Pros of Digital Marketing
Digital marketing is
- More engaging
Cons of Digital Marketing
But it is also
- Less permanent
- Constantly evolving
Every few months, there’s something new. What used to work last year may not be relevant anymore.
A clear example of this is the restrictions imposed on Facebook’s lookalike audience for certain industries like Real Estate, Credit, Financial Institutions, Employment, etc. With a single change, the playground for these industries changed drastically. Ad campaigns that were highly profitable became a loss-generating investment for these industries. Compared to this, traditional marketing channels have gone through little to no change and hence, are favored by many businessmen.
Traditional marketing is just easier to understand but that does not mean digital marketing should be avoided. The impact of digital marketing grows on a daily basis and hence, you as a business owner, need to get over your fears and reluctance towards digital marketing and embrace this ever-changing but highly fruitful marketing channel.
Traditional Marketing vs Digital Marketing – Which is better?
Traditional marketing is often a preferred channel for businesses hoping to reach the older generation but times are changing and even the older generation has adapted to the existence of the internet and spends a solid amount of time browsing and consuming content on the internet.
In that case, here’s what we suggest as a marketing agency!
Analyze your budget and assign a good portion of it to digital marketing. This budget is your investment for the future. Most digital marketing techniques need time to start generating results. It’s nothing different than usual – it’s the truth of business and life. You cannot reap the fruit just after you’ve sown the seed. You need patience and persistence for getting your desired results.
How much budget should you give? Ideally, the very basic should be the cost of two full-time mid-level employees. Let’s say this is approximate $7000 per month for you. 50% of it would go as the fee for the digital marketing company that would implement everything you need for your business & 50% would go as the ad and media spend that is usually used for things like web development, PPC ads, guest posting, and creating a perfect toolkit for your business.
With this, we recommend you continue the traditional marketing practices that are currently working for you.
Digital marketing is really about prepping for your future & adding more sources of lead generation for your business. That way, if one medium stops working, you can scale up on the other and keep doing your business without worrying about a lack of leads and customers.
That’s our suggestion for you. We’re sure as you see the results of digital marketing (which you will surely do if you hire a marketing agency that knows its job), you would want to increase the business spend on digital marketing. Try it out!
There you’ve it. Our last word on this subject.
P.S. Here’s a brief layout of major differences between traditional and digital marketing for a quick reference.
How Digital Marketing is Different From Traditional Marketing?
- Meaning: Traditional marketing implies marketing techniques that focus on traditional media – broadcast, print, TV, Radio, etc whereas digital marketing implies marketing techniques focus on digital channels like websites, social media, email, etc.
- Engagement & Conversion: Both are low and slow respectively for traditional media whereas both are comparatively higher for digital marketing.
- Return on Investment: ROI with traditional marketing cannot be measured directly whereas digital marketing offers you an enormous opportunity to track your ROI & make it even more effective with a data-driven approach.
- Effectiveness & Cost: While how effective is traditional marketing is debatable mainly because it’s extremely hard to track its effectiveness, there’s certainly no doubt that digital marketing is much cheaper than traditional marketing.
- Reach & Results: Reach of traditional media is limited unless you have a grand marketing budget which is almost impossible for small businesses whereas, with the same budget, a small business can reach a global audience with digital marketing if they want to. The results of traditional marketing are delayed & unclear whereas digital marketing offers comparatively faster results.
- Buying Cycle: The buying cycle and rate of conversion from a prospect to a lead is much faster with digital marketing compared to traditional. It’s mainly because with digital marketing, you can reach a more targeted audience & have more mediums & touchpoints to reach them.
- Customer Engagement: Customer engagement is much higher in the case of digital marketing, building a community & brand advocacy in long term. Such is not the case with traditional marketing. There’s a little engagement opportunity with customers through traditional means.
- Personalization: One of the major benefits of digital marketing is that it can be highly personalized and targeted, resulting in less digital spending and more impact. Such is not the case with traditional marketing that caters to a very broad audience.
There you go!
If you’re ready to hire a digital marketing agency in Toronto GTA, connect with us today!