To create an effective DMP, a business first needs to review the marketplace and set 'SMART' (Specific, Measurable, Actionable, Relevant and Time-Bound) objectives.[62] They can set SMART objectives by reviewing the current benchmarks and key performance indicators (KPIs) of the company and competitors. It is pertinent that the analytics used for the KPIs be customised to the type, objectives, mission and vision of the company.[63][64]

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GoTo.com (renamed Overture in 2001, and acquired by Yahoo! in 2003) created the first search advertising keyword auction in 1998.[20]:119 Google launched its "AdWords" search advertising program in 2000[21] and introduced quality-based ranking allocation in 2002,[22] which sorts search advertisements by a combination of bid price and searchers' likeliness to click on the ads.[20]:123

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Online advertisers can collect data on their ads' effectiveness, such as the size of the potential audience or actual audience response,[20]:119 how a visitor reached their advertisement, whether the advertisement resulted in a sale, and whether an ad actually loaded within a visitor's view.[61][62]:59 This helps online advertisers improve their ad campaigns over time.

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More recently, companies have sought to merge their advertising messages into editorial content or valuable services. Examples include Red Bull's Red Bull Media House streaming Felix Baumgartner's jump from space online, Coca-Cola's online magazines, and Nike's free applications for performance tracking.[19] Advertisers are also embracing social media[23][24] and mobile advertising; mobile ad spending has grown 90% each year from 2010 to 2013.[25]:13
With brands using the Internet space to reach their target customers; digital marketing has become a beneficial career option as well. At present, companies are more into hiring individuals familiar in implementing digital marketing strategies and this has led the stream to become a preferred choice amongst individuals inspiring institutes to come up and offer professional courses in Digital Marketing.

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As opposed to static messaging, chat advertising refers to real time messages dropped to users on certain sites. This is done using live chat software or tracking applications installed within certain websites with the operating personnel behind the site often dropping adverts on the traffic surfing around the sites. In reality this is a subset of the email advertising but different because of its time window.

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]


As advertisers collect data across multiple external websites about a user's online activity, they can create a detailed profile of the user's interests to deliver even more targeted advertising. This aggregation of data is called behavioral targeting.[27] Advertisers can also target their audience by using contextual to deliver display ads related to the content of the web page where the ads appear.[20]:118 Retargeting, behavioral targeting, and contextual advertising all are designed to increase an advertiser's return on investment, or ROI, over untargeted ads.[28]

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