Advertisers may also deliver ads based on a user's suspected geography through geotargeting. A user's IP address communicates some geographic information (at minimum, the user's country or general region). The geographic information from an IP can be supplemented and refined with other proxies or information to narrow the range of possible locations.[29] For example, with mobile devices, advertisers can sometimes use a phone's GPS receiver or the location of nearby mobile towers.[30] Cookies and other persistent data on a user's machine may provide help narrowing a user's location further.[29]

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Digital marketing methods such as search engine optimization (SEO), search engine marketing (SEM), content marketing, influencer marketing, content automation, campaign marketing, data-driven marketing,[8] e-commerce marketing, social media marketing, social media optimization, e-mail direct marketing, Display advertising, e–books, and optical disks and games are becoming more common in our advancing technology. In fact, digital marketing now extends to non-Internet channels that provide digital media, such as mobile phones (SMS and MMS), callback, and on-hold mobile ring tones.[9] In essence, this extension to non-Internet channels helps to differentiate digital marketing from online marketing, another catch-all term for the marketing methods mentioned above, which strictly occur online.

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Incidentally, according to a June 2013 study by Chitika, 9 out of 10 searchers don't go beyond Google's first page of organic search results, a claim often cited by the search engine optimization (SEO) industry to justify optimizing websites for organic search.[4][5] Organic SEO describes the use of certain strategies or tools to elevate a website's content in the "free" search results.

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There are a number of ways brands can use digital marketing to benefit their marketing efforts. The use of digital marketing in the digital era not only allows for brands to market their products and services, but also allows for online customer support through 24/7 services to make customers feel supported and valued. The use of social media interaction allows brands to receive both positive and negative feedback from their customers as well as determining what media platforms work well for them. As such, digital marketing has become an increased advantage for brands and businesses. It is now common for consumers to post feedback online through social media sources, blogs and websites on their experience with a product or brand.[27] It has become increasingly popular for businesses to use and encourage these conversations through their social media channels to have direct contact with the customers and manage the feedback they receive appropriately.
Online reviews have become one of the most important components in purchasing decisions by consumers in North America. According to a survey conducted by Dimensional Research which included over 1000 participants, 90% of respondents said that positive online reviews influenced their buying decisions and 94% will use a business with at least four stars. Interestingly, negative reviews typically came from online review sites whereas Facebook was the main source of positive reviews. Forrester Research predicts that by 2020, 42% of in-store sales will be from customers who are influenced by web product research.
Targeting, viewability, brand safety and invalid traffic: Targeting, viewability, brand safety and invalid traffic all are aspects used by marketers to help advocate digital advertising. Cookies are a form of digital advertising, which are tracking tools within desktop devices; causing difficulty, with shortcomings including deletion by web browsers, the inability to sort between multiple users of a device, inaccurate estimates for unique visitors, overstating reach, understanding frequency, problems with ad servers, which cannot distinguish between when cookies have been deleted and when consumers have not previously been exposed to an ad. Due to the inaccuracies influenced by cookies, demographics in the target market are low and vary (Whiteside, 2016).[44] Another element, which is affected within digital marketing, is ‘viewabilty’ or whether the ad was actually seen by the consumer. Many ads are not seen by a consumer and may never reach the right demographic segment. Brand safety is another issue of whether or not the ad was produced in the context of being unethical or having offensive content. Recognizing fraud when an ad is exposed is another challenge marketers face. This relates to invalid traffic as premium sites are more effective at detecting fraudulent traffic, although non-premium sites are more so the problem (Whiteside, 2016).[44]

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Shifting the focus to the time span, we may need to measure some "Interim Metrics", which give us some insight during the journey itself, as well as we need to measure some "Final Metrics" at the end of the journey to inform use if the overall initiative was successful or not. As an example, most of social media metrics and indicators such as likes, shares and engagement comments may be classified as interim metrics while the final increase/decrease in sales volume is clearly from the final category.
Digital marketing became more sophisticated in the 2000s and the 2010s, when[15][16] the proliferation of devices' capable of accessing digital media led to sudden growth.[17] Statistics produced in 2012 and 2013 showed that digital marketing was still growing.[18][19] With the development of social media in the 2000s, such as LinkedIn, Facebook, YouTube and Twitter, consumers became highly dependent on digital electronics in daily lives. Therefore, they expected a seamless user experience across different channels for searching product's information. The change of customer behavior improved the diversification of marketing technology.[20] 

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Consumers also face malware risks, i.e. malvertising, when interacting with online advertising. Cisco's 2013 Annual Security Report revealed that clicking on ads was 182 times more likely to install a virus on a user's computer than surfing the Internet for porn.[107][108] For example, in August 2014 Yahoo's advertising network reportedly saw cases of infection of a variant of Cryptolocker ransomware.[109]
The Nielsen Global Connected Commerce Survey conducted interviews in 26 countries to observe how consumers are using the Internet to make shopping decisions in stores and online. Online shoppers are increasingly looking to purchase internationally, with over 50% in the study who purchased online in the last six months stating they bought from an overseas retailer.[25]

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The new digital era has enabled brands to selectively target their customers that may potentially be interested in their brand or based on previous browsing interests. Businesses can now use social media to select the age range, location, gender and interests of whom they would like their targeted post to be seen by. Furthermore, based on a customer's recent search history they can be ‘followed’ on the internet so they see advertisements from similar brands, products and services,[40] This allows businesses to target the specific customers that they know and feel will most benefit from their product or service, something that had limited capabilities up until the digital era.

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Incidentally, according to a June 2013 study by Chitika, 9 out of 10 searchers don't go beyond Google's first page of organic search results, a claim often cited by the search engine optimization (SEO) industry to justify optimizing websites for organic search.[4][5] Organic SEO describes the use of certain strategies or tools to elevate a website's content in the "free" search results.

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In the 2000s, with more and more Internet users and the birth of iPhone, customers started searching products and making decisions about their needs online first, instead of consulting a salesperson, which created a new problem for the marketing department of a company. In addition, a survey in 2000 in the United Kingdom found that most retailers had not registered their own domain address.[14] These problems made marketers find the digital ways for market development.

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In the 1990s, the term Digital Marketing was first coined,.[12] With the debut of server/client architecture and the popularity of personal computers, the Customer Relationship Management (CRM) applications became a significant part of marketing technology.[citation needed] Fierce competition forced vendors to include more service into their software, for example, marketing, sales and service applications. Marketers were also able to own huge online customer data by eCRM software after the Internet was born. Companies could update the data of customer needs and obtain the priorities of their experience. This led to the first clickable banner ad being going live in 1994, which was the "You Will" campaign by AT&T and over the first four months of it going live, 44% of all people who saw it clicked on the ad.[13]

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Another disadvantage is that even an individual or small group of people can harm image of an established brand. For instance Dopplegnager is a term that is used to disapprove an image about a certain brand that is spread by anti-brand activists, bloggers, and opinion leaders. The word Doppelganger is a combination of two German words Doppel (double) and Ganger (walker), thus it means double walker or as in English it is said alter ego. Generally brand creates images for itself to emotionally appeal to their customers. However some would disagree with this image and make alterations to this image and present in funny or cynical way, hence distorting the brand image, hence creating a Doppelganger image, blog or content (Rindfleisch, 2016).

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Display advertising conveys its advertising message visually using text, logos, animations, videos, photographs, or other graphics. Display advertisers frequently target users with particular traits to increase the ads' effect. Online advertisers (typically through their ad servers) often use cookies, which are unique identifiers of specific computers, to decide which ads to serve to a particular consumer. Cookies can track whether a user left a page without buying anything, so the advertiser can later retarget the user with ads from the site the user visited.[26]

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CPA (Cost Per Action or Cost Per Acquisition) or PPP (Pay Per Performance) advertising means the advertiser pays for the number of users who perform a desired activity, such as completing a purchase or filling out a registration form. Performance-based compensation can also incorporate revenue sharing, where publishers earn a percentage of the advertiser's profits made as a result of the ad. Performance-based compensation shifts the risk of failed advertising onto publishers.[64]:4, 16

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A disadvantage of digital advertising is the large amount of competing goods and services that are also using the same digital marketing strategies. For example, when someone searches for a specific product from a specific company online, if a similar company uses targeted advertising online then they can appear on the customer's home page, allowing the customer to look at alternative options for a cheaper price or better quality of the same product or a quicker way of finding what they want online.
Display advertising - As the term implies, online display advertising deals with showcasing promotional messages or ideas to the consumer on the internet. This includes a wide range of advertisements like advertising blogs, networks, interstitial ads, contextual data, ads on the search engines, classified or dynamic advertisement etc. The method can target specific audience tuning in from different types of locals to view a particular advertisement, the variations can be found as the most productive element of this method.
Guest blogging purely for inbound links is a flawed strategy because the value of those links are going down. However, guest blogging for traffic is still an incredibly viable strategy. While that inbound link you get at the end of a guest post doesn’t have as much SEO value as it used to, it still has the value of exposing your content to a new audience.

By using Internet platforms, businesses can create competitive advantage through various means. To reach the maximum potential of digital marketing, firms use social media as its main tool to create a channel of information. Through this a business can create a system in which they are able to pinpoint behavioral patterns of clients and feedback on their needs.[32] This means of content has shown to have a larger impingement on those who have a long-standing relationship with the firm and with consumers who are relatively active social media users. Relative to this, creating a social media page will further increase relation quality between new consumers and existing consumers as well as consistent brand reinforcement therefore improving brand awareness resulting in a possible rise for consumers up the Brand Awareness Pyramid.[33] Although there may be inconstancy with product images;[34] maintaining a successful social media presence requires a business to be consistent in interactions through creating a two way feed of information; firms consider their content based on the feedback received through this channel, this is a result of the environment being dynamic due to the global nature of the internet.[31] Effective use of digital marketing can result in relatively lowered costs in relation to traditional means of marketing; Lowered external service costs, advertising costs, promotion costs, processing costs, interface design costs and control costs.[34]

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Word of mouth communications and peer-to-peer dialogue often have a greater effect on customers, since they are not sent directly from the company and are therefore not planned. Customers are more likely to trust other customers’ experiences.[24] Examples can be that social media users share food products and meal experiences highlighting certain brands and franchises. This was noted in a study on Instagram, where researchers observed that adolescent Instagram users' posted images of food-related experiences within their social networks, providing free advertising for the products.[28]
The new digital era has enabled brands to selectively target their customers that may potentially be interested in their brand or based on previous browsing interests. Businesses can now use social media to select the age range, location, gender and interests of whom they would like their targeted post to be seen by. Furthermore, based on a customer's recent search history they can be ‘followed’ on the internet so they see advertisements from similar brands, products and services,[40] This allows businesses to target the specific customers that they know and feel will most benefit from their product or service, something that had limited capabilities up until the digital era.

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Digital marketing channels and traditional marketing channels are similar in function that the value of the product or service is passed from the original producer to the end user by a kind of supply chain.[76] For instance, a typical digital marketing channel is email. Organization can update the activity or promotion information to the user by subscribing the newsletter mail that happened in consuming. In addition to this typical approach, the built-in control, efficiency and low cost of digital marketing channels is an essential features in the application of sharing economy.[76]

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Two other practical limitations can be seen in the case of digital marketing. One,digital marketing is useful for specific categories of products,meaning only consumer goods can be propagated through digital channels.Industrial goods and pharmaceutical products can not be marketed through digital channels. Secondly, digital marketing disseminates only the information to the prospects most of whom do not have the purchasing authority/power. And hence the reflection of digital marketing into real sales volume is skeptical.[citation needed]

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The "sharing economy" refers to an economic pattern that aims to obtain a resource that is not fully utilized.[74] Nowadays, the sharing economy has had an unimagined effect on many traditional elements including labor, industry, and distribution system.[74] This effect is not negligible that some industries are obviously under threat.[74][75] The sharing economy is influencing the traditional marketing channels by changing the nature of some specific concept including ownership, assets, and recruitment.[75]
Because so few ordinary users (38% according to Pew Research Center) realized that many of the highest placed "results" on search engine results pages (SERPs) were ads, the search engine optimization industry began to distinguish between ads and natural results.[citation needed] The perspective among general users was that all results were, in fact, "results." So the qualifier "organic" was invented to distinguish non-ad search results from ads.[citation needed]
Digital marketing channels and traditional marketing channels are similar in function that the value of the product or service is passed from the original producer to the end user by a kind of supply chain.[76] For instance, a typical digital marketing channel is email. Organization can update the activity or promotion information to the user by subscribing the newsletter mail that happened in consuming. In addition to this typical approach, the built-in control, efficiency and low cost of digital marketing channels is an essential features in the application of sharing economy.[76]

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