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Digital Advertising v/s Digital Marketing: Know the Difference.

In this digital age, marketing is no more a choice but a prerequisite for businesses who are leaving no stone unturned to get their message across to the customers effectively and powerfully.

Then the question arises, in order to put forward the message in the right way to the right people, which one to go for? 

Marketing or Advertising?

Well, aren’t they both the same?  The answer is ‘No’.

There is a thin line of difference between them. This article will help you to understand it and justify the answer to the above question.

Know the basics-

Digital Advertising:

It is also called online advertising, web advertising or internet advertising

Digital advertising is defined as a form of marketing or advertising where businesses leverage internet technologies to deliver their promotional advertisements to customers.

In simple words, if you see an ad on the internet, it is called digital advertising.

There are three types of digital advertising:

1. Pay-per-click (PPC) ads: (Adwords search ads, bing ads, etc)

For example, the ads you see in search results.

                                Image Credit: Wordstream

2. Display ads : (Banners, video, mobile, pop-ups, etc)

For example, this ad by eBay is promoting its products. eBay is the biggest player in banner advertising and invests a lot of money in display advertising.

Image Credit: Bannernack

3. Social ads: (Facebook, Twitter, YouTube, etc)

For example, A ‘suggested post’ on Facebook is a social ad.

Image Credit: Social Media Examiner

Digital Marketing:

Digital Marketing includes all the marketing efforts using the internet or digital technologies. Businesses leverage digital channels like emails, search engines, websites, social media, blog posts, logos, and everything else that is helpful in online promotion and connect with current and prospective customers.

There are six types of digital marketing:

1. Search engine optimization (SEO)
2. Social Media Marketing (SMM)
3. Content Marketing
4. Email and Mobile Marketing
5. Affiliate Marketing
6. Online advertising

The following infographic explains digital marketing in detail:

Image Credit: Smart insights

Now that we know the key processes in each segment, let’s look at the major differences –

• Digital Advertising is a part of Digital Marketing

Digital Marketing is a broader term whereas digital advertising is a part of it. This raises a question,

Is digital advertising necessary for your business?

Not really. Your business can survive without digital advertising. 

Why and How?

The definitions make it clear that digital advertising is a subset of digital marketing. When you start with a business idea, from that very moment you are involved in marketing and not advertising.

Product creation, Product Pricing, Packaging, Promotion, market segmentation, target audience are all a part of your business strategy and marketing mix.

  Image Credit: BBC UK

Digital advertising is part of the marketing mix. It comes into play when you use the internet to promote your product or service or to generate traffic. However, you can also choose from other tactics – a search engine, content management, social media, email marketing, etc to generate traffic.

It is not necessary to use digital advertising at the promotion stage to reach your target audience. 

For instance, DemandBase in one of the campaigns used white papers, infographics, Slideshare, and webinars to generate new leads. This helped the company to generate over $1 million in new revenue through content marketing resulting in 1700 new leads and connect with 125 webinar viewers.

You can run your business without digital advertising but not digital marketing. The purpose of all marketing techniques is to generate leads and generate traffic and so you can choose any tactic – SEO or PPC or both whichever helps to grow your business.

• Digital Advertising is an activity while digital marketing is a process: 

Digital marketing helps to build a strategy to market your business in the following way:

• Define your target audience,
• Ways to attract, engage, convert and retain the customers, 
• Evaluate existing and new digital channels like SEO, PPC, content marketing, etc
• Analysis and monitoring

In broader terms, digital marketing is a process that runs your entire business on the internet and it begins from the moment you start with the business idea.

       Image Credit: Abhiseo

The digital marketing process is continuous. It begins with the research phase and continues until the refining stage and the data from the refining stage is used again for the research to develop a new marketing strategy. It is a perpetual and never-ending process.

Digital advertising is an activity in the digital marketing process. It fits at Step 6: Promote- the purpose is to promote your primary digital identities (blog, website, app, product or anything else) via ads to relevant people in order to generate traffic. To do this, a digital advertiser will need inputs from a digital marketer on what to promote, who to promote, advertising budget, etc. An advertiser will accordingly create an ad to generate traffic.

• Digital advertising is tactics while digital marketing is strategic

A strategy is a long term and complex plan which involves decision-making at various levels while a tactic is a short-term plan or means to achieve the desired result. 

Digital advertising is tactical in nature as the promotion of a particular product or an offer to the target audience is momentary and short term. Subsequently, it can be easily replicated by competitors.

For instance, Facebook ads are short-lived. You might run an ad on Facebook to promote your product or an offer during Easter. Once you achieve the goal from the campaign, you will discontinue it and move on with another ad campaign or platform.

Whereas, digital marketing is strategic in nature that involves long term planning, projections, defined goals and objectives, budgets and resources to achieve the objectives.

For instance, Slack is a collaboration tool that allows teams to share files and communicate easily. They had an amazing rise at the launch with 15000 users in 2014 to over 500,000 in less than a year, and currently holds nearly one and a half millions of which are paid accounts.

Their strategy was clear from day one – focusing on the customer experience. They believe in selling solutions and not products. The company acknowledges to 8000 help desk tickets and up to 10,000 tweets every month.

This is what digital marketing plan does versus a digital advertising campaign that shows results instantly.

A digital ad campaign if fails will not impact the business overall but if digital marketing campaign fails it will affect the running of the business immensely.

• Digital advertising promotes the brand while digital marketing develops the brand image.

Digital Advertising promotes a brand, product or services. A compelling ad engages the customers, generates leads and creates brand awareness.

For instance, Typeform, a survey software company offers a freemium option with a condition that customers should include a thank-you page that includes its logo and message. It is a win-win situation that helps customers get to know the product for free and the brand gets free advertising. 

              Image Credit: ThinkIt Training Institute

Digital marketing builds a brand and brand image with a strategy in place. You plan the logo, design, taglines for your brand. You will develop a strategy on how your brand will be perceived by the target audience and what message your brand will convey to the target audience. It is a long term planning to build a robust brand image based on values and ethics that remain etched in the minds of the consumers.

• Digital Advertising is sales centred while digital marketing is audience psychology centred.

Digital marketing is not always sales-driven. The ultimate goal is to increase your ROI and sales but along with building a relationship with the target audience.

Let’s say you write a blog and publish it not only to increase traffic and revenue but build a relationship with your readers. This is what digital marketing does, it is based on audience psychology. To understand your target audience, their needs, and wants, it is essential to know audience psychology.

On the contrary, digital advertising focuses on a specific segment of the target audience that can be reached via ads. For instance, if you pay $50 for a $5 CPM slot, you are content as long as you get your 5000 impressions. In digital advertising, you are not much concerned about who sees it as long as the ad is performing and reaches out to the people.

Conclusion-

After reading this article, you may now have a clear idea about digital marketing and digital advertising. They are not the same and has an individual role to play.  Let’s have a short recap to have no doubts in mind.