Importance of Digital Marketing for Startups

According to the latest news stated by CDK Global, marketers are spending 64% of their marketing budget on digital tools, up from 45% in 2015. It is said that the biggest “pain points” in digital marketing are the online advertising which is done with the help of social media tools, website flexibility and integrating the digital tools with the legacy system.

Stuart Miles, Managing Director of CDK shared, “our research shows that retailers are spending 0.2% to 1.3% of their turnover on digital marketing. We are working with the retailers to understand that factor which impacts the success of digital marketing.”CDK is now adopting a more open approach for integrating change of strategy first mooted in Motor Trader in 2017.

digital makrting in india

Digital Marketing in India

New businesses are constantly arising, and the goal is to track the ever-changing customer’s habits. Establishing the startup business can be an overwhelming task due to the lack of quality resources. New brands are being launched every day and they are trying to maintain their pace with dynamic consumer behavior. In this scenario, digital marketing plays a significant role in building brand awareness, traffic generation, lead conversion and creating loyal customers.

Since marketing influence over revenue is increasing, it only makes sense that everyone in the organization must have some level of digital marketing knowledge. Today, trends of digitization, not in terms of marketing but for all major activities is relentlessly taking over traditional form of marketing as people are more prone to the internet these days. Over the years, digital marketing has advanced a great deal, not only it constitutes social media, but it also includes various other activities like Email marketing, SEO campaigns, etc.

Here are few points which will explain why digital marketing is really important for every startup business:

True Engagement

Digital marketing has the ability to transform the products and processes with the help of technology and in most cost-effective manner. This gives them an edge over other marketing channels. It brings them one step closer to reach the audience through the developments which are breaking new grounds every day. Social media campaigns engage the audiences with the events and happenings of a company such as product launch, acquisition, etc. and help them getting real time feedback of the target audience for improvement.

Cohesive strategy

Marketing is no longer confined to selling products and services. Today, it involves the process to build a brand. Contrary to traditional marketing strategy which relied on a single medium, digital marketing helps a brand to grow and sustain with the technology that automates the processes, personalize interaction and coordinates actions.

impotance of digital marketing

Understanding of customers

Getting to know your customers is the commitment and delivering what your customer requires is the need of the hour. Digital marketing not only facilitates a robust customer experience but also tracks, monitors and analyzes the interest & ok. It is stated that during a buying process a consumer adds an average of 1.7 brands to those they are considering.

Comprehensive metrics

Today, adoption of mobile phones is twice of the internet, three times of social media and ten times faster than PCs. Digital marketing uses a wide range of data coupled with sophisticated tools to analyze the customer's segments and their behavior. Therefore, when a startup defines their plan, it must incorporate a solid digital strategy.

Challenges & Opportunities faced in Digital Marketing

According to the survey of 4000 marketers by Econsultancy, the two top most digital trends in 2020 are going to be focused on two aspects i.e. customers experience (24%) and personalization (23%). Those trends encompass the myriad opportunities. The most specific sub-trend driving the move to customers experience is threefold:

  • The rise in creativity and design
  • Marketing as service
  • Connecting the dots

According to the 2016 state of Inbound Report, to generate the traffic and leads and providing ROI are the leading marketing challenging faces. Some of the biggest challenges and opportunities faced in the business of digital marketing are as below:


  • Meeting expectation of customers

According to Haris Poll, 82% of US corporate said that the customer's expectations of their company were somewhat 47% or more; 35% higher than they were 3 years before. Nobody wants to wait in queue for services anymore.

  • Finding people who can digitally transform company

Somebody is required to create all these great user experience which makes the difference to customer’s lives. That means the companies that need success to digital requires to become technology companies.

Challenges of Digital Marketing

Challenges of Digital Marketing

  • Managing omnichannel reality

You cannot fight fragmentation with fragmentation; it is nothing you can change. It means that the companies need to standardize on the inside with business platforms so that they can keep a track record of what is happening across the channels.

  • Big data

Big data represents companies with new opportunities to learn more about their customers. It also enables them not only to personalize products and services but also to change their products development process which reflects what people really need.


  • Digital disruption from within

Disruption is the name of the game with the established players who constantly replace the newcomers that are digital natives. Existing companies require disrupting themselves like Steve Jobs did when he stopped making their best selling iPod to introduce the newer version of it.

  • Internet of things (IoT)

By the use of Oculus and Beacon solutions, customer experiences can be improved. IoT is connecting people and devices with each other in an unprecedented manner. Companies need to consider how using the connected devices can provide more value to customers and more savings to them.

Digital Marketing

Opportunities of Digital Marketing

  • Digital Workforce

The startup companies can work with very small in-house teams by using the technology and web to create teams per project. In the world, less than 1 in 7 people are engaged at work, which could spell at the end of a multinational corporation.

  • Micro-moments

Nowadays, the consumer wants everything here and now and with the power of mobile it is quite easy for them to deal with what they want. According to Google, there has been an explosion in people conducting the searches for “near me”. 50% of consumers carry out local searches and nearly 1 out of 5 leads to purchase within a day.

Future Growth and Budget Tactics of Digital Marketing

The advent of digital marketing has opened the novel landscape for doing online business. According to the survey by 2017, India will have around 600 million internet users which will ultimately create a business opportunity to tech-savvy internet users. Markets are expected to take full care of the customer's experience in coming years.

Future growth of Digital Marketing

Future growth of Digital Marketing

According to the report by Social Beat, 86% of brands are leveraging the digital media. The topmost areas of focus for most brands are:

  •  Social media marketing – 88.17%
  • Search engine optimization – 70.97%
  • Content marketing via blogs – 56.99%
  • Email campaigns – 55.91%
  • Landing page optimization – 55.91%
  • Search engine marketing – 55.91%

The growing population of internet users has massively expanded the scope of digital marketing in India and future looks to be great. While other industries are struggling with the growth rate of 5 to 10 percent, digital media is booming high with 40% of growth rate. The major shift in digital marketing scope is from anonymity to identity and from information to entertainment.

futue ad Digital Marketing

There are more than 900 private TV channels and 250+ radio station which makes the traditional marketing quite expensive and highly confusing with lots of vacillations. Further, it is stated that India shows growth at a staggering 31% per annum for next 5 years.

Budget Tactics for Digital Marketing

For 8 consecutive years, top marketers were asked about the budget for digital marketing in upcoming years. Since 2009, marketing budget remained consistent compared to previous year. By the year 2018 marketing budget are expected to increase from 2017. Most firms expect 93% increase in the spend on digital marketing in 2018.

year 2018 digital marketing budget

The report says that 25% of respondents expect their digital marketing budget to increase marginally and 41% is expected to increase significantly. Respondents say that the most effective digital marketing tactics in 2018 will be social media (18%), content marketing (17%), data management (7%), and many more.

digital marketing budget

Online videos will represent the highest growth with the investment more than doubling 2016 no’s by 2021.29% of marketing budget will be allocated to online channels. SEO& SEM will capture 47% of marketing budget from the total budget.


Bringing together the data from these credible sources in marketing community will help you to determine that how much is spend on marketing and where to apply those investments.

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