The development of digital marketing is inseparable from technology development. One of the key points in the start of was in 1971, where Ray Tomlinson sent the very first email and his technology set the platform to allow people to send and receive files through different machines.[10] However, the more recognisable period as being the start of Digital Marketing is 1990 as this was where the Archie search engine was created as an index for FTP sites. In the 1980s, the storage capacity of computer was already big enough to store huge volumes of customer information. Companies started choosing online techniques, such as database marketing, rather than limited list broker.[11] This kind of databases allowed companies to track customers' information more effectively, thus transforming the relationship between buyer and seller. However, the manual process was not so efficient.

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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]
An omni-channel approach not only benefits consumers but also benefits business bottom line: Research suggests that customers spend more than double when purchasing through an omni-channel retailer as opposed to a single-channel retailer, and are often more loyal. This could be due to the ease of purchase and the wider availability of products.[26]
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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Secure (https) to non-secure sites (http): Since Google began emphasizing the importance of having a secure site, more websites are securely hosted, as indicated by the “https” in their URLs. Per the security protocol, however, any traffic going from a secure site to a non-secure site will not pass referral information. You can correct for this issue by updating your site to be secure through a third-party SSL certificate.
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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Advertisers have a wide variety of ways of presenting their promotional messages, including the ability to convey images, video, audio, and links. Unlike many offline ads, online ads also can be interactive.[19] For example, some ads let users input queries[71] or let users follow the advertiser on social media.[72] Online ads can even incorporate games.[73]

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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.
Direct traffic is defined as visits with no referring website. When a visitor follows a link from one website to another, the site of origin is considered the referrer. These sites can be search engines, social media, blogs, or other websites that have links to other websites. Direct traffic categorizes visits that do not come from a referring URL.

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To cease opportunity, the firm should summarize their current customers' personas and purchase journey from this they are able to deduce their digital marketing capability. This means they need to form a clear picture of where they are currently and how many resources they can allocate for their digital marketing strategy i.e. labour, time etc. By summarizing the purchase journey, they can also recognise gaps and growth for future marketing opportunities that will either meet objectives or propose new objectives and increase profit.
Online banner advertising began in the early 1990s as page owners sought additional revenue streams to support their content. Commercial online service Prodigy displayed banners at the bottom of the screen to promote Sears products. The first clickable web ad was sold by Global Network Navigator in 1993 to a Silicon Valley law firm.[17] In 1994, web banner advertising became mainstream when HotWired, the online component of Wired Magazine, sold banner ads to AT&T and other companies. The first AT&T ad on HotWired had a 44% click-through rate, and instead of directing clickers to AT&T's website, the ad linked to an online tour of seven of the world's most acclaimed art museums.[18][19]

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Online advertising includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like other advertising media, online advertising frequently involves a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher's content. Other potential participants include advertising agencies who help generate and place the ad copy, an ad server which technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser.
Because users have different operating systems, web browsers[86] and computer hardware (including mobile devices and different screen sizes), online ads may appear to users differently from how the advertiser intended, or the ads may not display properly at all. A 2012 comScore study revealed that, on average, 31% of ads were not "in-view" when rendered, meaning they never had an opportunity to be seen.[87] Rich media ads create even greater compatibility problems, as some developers may use competing (and exclusive) software to render the ads (see e.g. Comparison of HTML 5 and Flash).
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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The term was first used by Internet theorist John Kilroy in a 2004 article on paid search marketing.[citation needed] Because the distinction is important (and because the word "organic" has many metaphorical uses) the term is now in widespread use within the search engine optimization and web marketing industry. As of July 2009, "organic search" is now common currency outside the specialist web marketing industry, even used frequently by Google (throughout the Google Analytics site, for instance).
Data-driven advertising: Users generate a lot of data in every step they take on the path of customer journey and Brands can now use that data to activate their known audience with data-driven programmatic media buying. Without exposing customers' privacy, users' Data can be collected from digital channels (e.g.: when customer visits a website, reads an e-mail, or launches and interact with brand's mobile app), brands can also collect data from real world customer interactions, such as brick and mortar stores visits and from CRM and Sales engines datasets. Also known as People-based marketing or addressable media, Data-driven advertising is empowering brands to find their loyal customers in their audience and deliver in real time a much more personal communication, highly relevant to each customers' moment and actions.[39]

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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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Digital marketing is also referred to as 'online marketing', 'internet marketing' or 'web marketing'. The term digital marketing has grown in popularity over time. In the USA online marketing is still a popular term. In Italy, digital marketing is referred to as web marketing. Worldwide digital marketing has become the most common term, especially after the year 2013.[21]

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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
Many laws specifically regulate the ways online ads are delivered. For example, online advertising delivered via email is more regulated than the same ad content delivered via banner ads. Among other restrictions, the U.S. CAN-SPAM Act of 2003 requires that any commercial email provide an opt-out mechanism.[110] Similarly, mobile advertising is governed by the Telephone Consumer Protection Act of 1991 (TCPA), which (among other restrictions) requires user opt-in before sending advertising via text messaging.

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According to the U.S. Commerce Department, consumers spent $453.46 billion on the web for retail purchases in 2017, a 16.0% increase compared with $390.99 billion in 2016. That’s the highest growth rate since 2011, when online sales grew 17.5% over 2010. Forrester predicts that online sales will account for 17% of all US retail sales by 2022. And digital advertising is also growing strongly; According to Strategy Analytics, in 2017 digital advertising was up 12%, accounting for approximately 38% of overall spending on advertising, or $207.44 billion.

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Your customers, prospects, and partners are the lifeblood of of your business. You need to build your marketing strategy around them. Step 1 of marketing is understanding what your customers want, which can be challenging when you’re dealing with such a diverse audience. This guide will walk you through (1) the process of building personal connections at scale and (2) crafting customer value propositions that funnel back to ROI for your company. Get Started

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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]

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The term “organic traffic” is used for referring to the visitors that land on your website as a result of unpaid (“organic”) search results. Organic traffic is the opposite of paid traffic, which defines the visits generated by paid ads. Visitors who are considered organic find your website after using a search engine like Google or Bing, so they are not “referred” by any other website.

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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]

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Balancing search and display for digital display ads are important; marketers tend to look at the last search and attribute all of the effectiveness to this. This then disregards other marketing efforts, which establish brand value within the consumers mind. ComScore determined through drawing on data online, produced by over one hundred multichannel retailers that digital display marketing poses strengths when compared with or positioned alongside, paid search (Whiteside, 2016).[44] This is why it is advised that when someone clicks on a display ad the company opens a landing page, not its home page. A landing page typically has something to draw the customer in to search beyond this page. Things such as free offers that the consumer can obtain through giving the company contact information so that they can use retargeting communication strategies (Square2Marketing, 2012).[45] Commonly marketers see increased sales among people exposed to a search ad. But the fact of how many people you can reach with a display campaign compared to a search campaign should be considered. Multichannel retailers have an increased reach if the display is considered in synergy with search campaigns. Overall both search and display aspects are valued as display campaigns build awareness for the brand so that more people are likely to click on these digital ads when running a search campaign (Whiteside, 2016).[44]
Considering that most marketing involves some form of published media, it is almost (though not entirely) redundant to call 'content marketing' anything other than simply 'marketing'. There are, of course, other forms of marketing (in-person marketing, telephone-based marketing, word of mouth marketing, etc.) where the label is more useful for identifying the type of marketing. However, even these are usually merely presenting content that they are marketing as information in a way that is different from traditional print, radio, TV, film, email, or web media.

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In-game advertising - In-Game advertising is defined as "inclusion of products or brands within a digital game."[51] The game allows brands or products to place ads within their game, either in a subtle manner or in the form of an advertisement banner. There are many factors that exist in whether brands are successful in their advertising of their brand/product, these being: Type of game, technical platform, 3-D and 4-D technology, game genre, congruity of brand and game, prominence of advertising within the game. Individual factors consist of attitudes towards placement advertisements, game involvement, product involvement, flow or entertainment. The attitude towards the advertising also takes into account not only the message shown but also the attitude towards the game. Dependent of how enjoyable the game is will determine how the brand is perceived, meaning if the game isn't very enjoyable the consumer may subconsciously have a negative attitude towards the brand/product being advertised. In terms of Integrated Marketing Communication "integration of advertising in digital games into the general advertising, communication, and marketing strategy of the firm"[51] is an important as it results in a more clarity about the brand/product and creates a larger overall effect.

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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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