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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While the obvious purpose of internet marketing is to sell goods, services or advertising over the internet, it's not the only purpose a business using internet marketing may have; a company may be marketing online to communicate a message about itself (building its brand) or to conduct research. Online marketing can be a very effective way to identify a target market or discover a marketing segment's wants and needs. (Learn more about conducting market research).
Search engine marketing, or SEM, is designed to increase a website's visibility in search engine results pages (SERPs). Search engines provide sponsored results and organic (non-sponsored) results based on a web searcher's query.[20]:117 Search engines often employ visual cues to differentiate sponsored results from organic results. Search engine marketing includes all of an advertiser's actions to make a website's listing more prominent for topical keywords. The primary reason behind the rising popularity of Search Engine Marketing has been Google. There were a few companies that had its own PPC and Analytics tools. However, this concept was popularized by Google. Google Ad words was convenient for the advertisers to use and create campaigns. And, they realized that the tool did a fair job, by charging only for someone's click on the ad, which reported as the cost-per-click for which a penny was charged. This resulted in the advertisers monitoring the campaign by the number of clicks and were satisfied that the ads could be tracked.[52]
Using an omni-channel strategy is becoming increasingly important for enterprises who must adapt to the changing expectations of consumers who want ever-more sophisticated offerings throughout the purchasing journey. Retailers are increasingly focusing on their online presence, including online shops that operate alongside existing store-based outlets. The "endless aisle" within the retail space can lead consumers to purchase products online that fit their needs while retailers do not have to carry the inventory within the physical location of the store. Solely Internet-based retailers are also entering the market; some are establishing corresponding store-based outlets to provide personal services, professional help, and tangible experiences with their products.[26]
Email advertising is ad copy comprising an entire email or a portion of an email message.[25]:22 Email marketing may be unsolicited, in which case the sender may give the recipient an option to opt out of future emails, or it may be sent with the recipient's prior consent (opt-in). Businesses may ask for your email and send updates on new products or sales.

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Different jurisdictions have taken different approaches to privacy issues with advertising. The United States has specific restrictions on online tracking of children in the Children's Online Privacy Protection Act (COPPA),[111]:16–17 and the FTC has recently expanded its interpretation of COPPA to include requiring ad networks to obtain parental consent before knowingly tracking kids.[114] Otherwise, the U.S. Federal Trade Commission frequently supports industry self-regulation, although increasingly it has been undertaking enforcement actions related to online privacy and security.[115] The FTC has also been pushing for industry consensus about possible Do Not Track legislation.

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Influencer marketing: Important nodes are identified within related communities, known as influencers. This is becoming an important concept in digital targeting. It is possible to reach influencers via paid advertising, such as Facebook Advertising or Google Adwords campaigns, or through sophisticated sCRM (social customer relationship management) software, such as SAP C4C, Microsoft Dynamics, Sage CRM and Salesforce CRM. Many universities now focus, at Masters level, on engagement strategies for influencers.

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Digital marketing's development since the 1990s and 2000s has changed the way brands and businesses use technology for marketing.[4] As digital platforms are increasingly incorporated into marketing plans and everyday life,[5] and as people use digital devices instead of visiting physical shops,[6][7] digital marketing campaigns are becoming more prevalent and efficient.
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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