Digital marketing, online marketing, internet marketing, and e-marketing. Yes, it looks like a semantic trap! I bet you have heard hundreds of times each of these terms, and basically, you grasp what they are about, but when asked how they are related or how they differ from each other, you may go crazy… It’s absolutely normal, as all of them mean very similar sorts of things. Similar, but not the same… So, where do the differences lie?
In this post, I present the definitions of both digital and online marketing to give you a clear understanding of both title phenomena. I also further investigate what they actually have in common and briefly expand on the key differences between them. Finally, I present interesting real-life applications and cover the limitations of both types of marketing.
Key Takeaways:
- Digital marketing targets audiences across multiple digital mediums (both online and offline ones) like digital radio ads, internet search engines, paid ads, web pages, social media, emails and more.
- Unlike traditional marketing methods like print advertising, brochures, in-store promos or TV ads, online marketing focuses on internet based-strategies.
- Digital marketing includes online marketing as a component.
- At the same time, digital marketing can include offline methods like SMS and digital billboards.
- The key differences between digital and online marketing lie in preferred channels, target groups, targeting methods, industry scope, cost level, campaign measurement techniques, and flexibility.
- The key limitations of online marketing include quick trend shifts, measurement issues, privacy challenges and tackling high ad churn.
- Digital marketing limitations encompass those mentioned above, along with limitations of offline marketing strategies, which are expensive, limited to specific regions (industries, groups, etc.), and static in terms of content.
Let’s get started!
What is Digital Marketing?
Digital marketing encompasses all marketing efforts that use digital channels to reach and engage with potential customers. Digital means here both online and offline channels.
The word “digital” generally refers to anything related to technology, especially electronic systems that store, process, and transmit data. In digital contexts, information is often represented in binary format (0s and 1s), enabling computers, smartphones, and other digital devices to interpret and manipulate it.
Digital marketing leverages online strategies to connect with a target audience, often using data-driven insights to refine approaches in real time. The key types of activities used within a digital marketing strategy usually comprise:
- search engine optimization (SEO),
- email marketing,
- content marketing,
- paid advertising,
- web page and/or landing page marketing,
- and social media marketing.
These are “pillars” of digital marketing often identified with this term, but if we put the subject more precisely, also the following offline marketing methods should be seen as its parts:
- SMS marketing (text message campaigns sent directly to users’ mobile phones for promotions, updates, or reminders),
- digital billboards (electronic displays often found in high-traffic areas showing targeted advertising content),
- in-game advertising (ads embedded within digital or video games, which can be placed strategically to reach gaming audiences),
- television ads on streaming services (ads shown on digital TV platforms, e.g., Hulu or Amazon Prime, that are outside the traditional internet scope),
- digital radio advertising (ads placed on streaming radio services or digital radio stations, e.g., Spotify or Pandora),
- interactive kiosks (digital displays in physical locations allowing users to interact with brand content, such as touchscreens in malls),
- QR code campaigns (physical QR codes on posters, packaging, or billboards, directing users to online content or promotions),
- augmented reality (AR) ads (ads that use AR technology to create interactive, immersive brand experiences for users in physical or virtual spaces),
- NFC (Near Field Communication) marketing (marketing using NFC technology (e.g., touchless payments or product information in stores),
- bluetooth marketing (beacons) (location-based marketing in physical spaces via Bluetooth-enabled devices to send notifications or content to nearby customers).
What is Online Marketing?
Online marketing is digital marketing practiced using the Internet, which is why it’s often called internet marketing. Online (or internet) marketing strategies include things you know from the previous part: SEO, social media activities, email campaigns, web marketing, pay-per-click advertising (also known as PPC or paid campaigns), etc.
In marketing practice, online marketing is frequently labeled as “digital marketing”. Simon Kingsnorth titled his splendid book “Digital Marketing Strategy: An Integrated Approach to Online Marketing”.
What’s more, sometimes, online marketing is also known as e-marketing, which can make it easy to confuse it with electronic marketing.
Finally, this branch of marketing is considered the opposite of traditional marketing, which tries to acquire clients utilizing offline marketing techniques like billboards (but not digital ones…), phone calls, TV commercials, flyers, etc.
7 Key Differences Between Digital Marketing and Online Marketing
Key differences between digital marketing and online marketing strategies pertain to marketing channels used, target audience (and ways of targeting), cost efficiency, performance tracking methods, and the level of flexibility. Let’s break down all of these and a few other relevant differences into bits to provide a more detailed view.
1. Channels Used
Digital marketing integrates a mix of online and offline channels, allowing brands to reach audiences across diverse platforms like social media, TV commercials, and in-store digital screens. This multi-channel approach expands the reach beyond internet users alone.
Online marketing is restricted to digital channels accessible via the internet, such as PPC campaigns, social media ads, and website promotions. By utilizing only web channels, online marketing targets those with internet access, limiting offline touchpoints.
2. Consumer Groups
Digital marketing can target both online and offline consumers, extending reach to those not actively engaging on digital platforms, such as through TV or SMS campaigns. It can be particularly useful for brands aiming to capture a wider, sometimes non-digital-savvy audience.
In contrast, online marketing is inherently limited to users with internet access, which can exclude certain demographics or regions with limited online connectivity. Thus, digital marketing’s reach is inherently broader, while online marketing’s reach is highly specific to internet-enabled audiences.
3. Targeting and Personalization
The previous difference entails another one. Digital marketing’s offline components (like SMS or digital radio ads) use broader, more general, and less precise targeting methods. Online marketing offers more refined targeting, using data analytics to segment audiences by:
- demographics,
- behavior,
- interests,
- or location.
This enables online marketing to deliver highly personalized campaigns, such as retargeting users who visited a website or engaging customers with personalized email offers. Hence, it works perfectly for long-term relationship building (you target customers who are potentially interested in your offerings).
4. Application Scope
Digital marketing’s mix of online and offline methods makes it suitable for a wide range of industries, from local businesses using digital billboards to multinational brands advertising on both TV and online.
Online marketing tends to cater more to internet-focused industries like:
- e-commerce,
- digital services,
- and tech,
where customer engagement primarily happens online. This makes online marketing more applicable to sectors that rely on web interactions.
5. Cost Level
Digital marketing campaigns, especially those incorporating offline media like TV or radio, often require larger budgets and upfront commitments. For instance, producing a television ad or securing a billboard spot can involve substantial costs.
Online marketing is generally more cost-effective, offering flexible budgets for tactics like pay-per-click ads or social media boosts that allow for smaller-scale spending. The ability to control and scale expenses in real-time also makes online marketing a more accessible option for smaller businesses.
6. Measurement and Analytics
Online marketing benefits from detailed analytics via digital tools or platforms like Google Analytics, where marketers can assess, for example:
- click-through rates,
- conversion rates,
- conversion value,
- lead counts,
and other parameters important at different levels of user journeys. Stats are typically collected in real-time. All of these allow for data-backed campaign adjustments that optimize results.
Digital marketing, while offering analytics for its online elements, often lacks precise data for offline channels. For instance, measuring the success of a digital billboard campaign is more challenging, relying on general exposure estimates rather than exact data, which limits actionable insights.
Additionally, evaluating the impact of digital marketing, just like in the case of traditional marketing, often requires surveys or market research performed by experts, which incurs serious costs.
7. Campaign Flexibility
Online marketing provides flexibility, enabling marketers to adjust strategies instantly based on campaign performance data. For example, an online marketer can switch up a Facebook ad mid-campaign if it’s underperforming.
Digital marketing campaigns, particularly offline elements like radio or TV ads, are less adaptable, as changing these ads requires significant lead time and often additional cost. This lack of real-time adjustability in digital marketing may reduce efficiency compared to the immediate adaptability of online marketing.
Digital Marketing vs Online Marketing Examples
It’s time to visualize what we’re talking about to make your understanding of the differences between digital and online marketing as clear as possible.
Digital Marketing Example
A clear example of digital marketing that doesn’t at the same time belong to online marketing is a digital billboard or a display ad you may spot when buying take-out food:
What’s important is that all online marketing strategies belong to digital advertising! Hence, the examples covered below are in fact examples of both online and digital marketing.
Online Marketing Example
The second example is from the Wall Street Journal’s social media campaign. The company is moving forward with the times, so they don’t limit their marketing activities to offline channels. While scrolling your Facebook feed you may unexpectedly come across the following block:
It’s a kind of online advertisement widely known as a PPC ad. It’s a typical example of online marketing, as to encounter it, you have to be connected to the web. That’s it!
But be cautious, as there is a snag! Sometimes, the same ad can be classified simultaneously as an online and… offline ad! Because it all depends on how it is served. If you are set in the United States, read newspapers, and sometimes watch TV or streaming services, you for sure recall another commercial by Wall Street Journal:
Looks familiar, doesn’t it? This ad was presented on many streaming services for US audiences and… on TV. TV commercials belong to traditional marketing and are undoubtedly used offline, while streaming services, when connected to web, are online. Get it now? BTW, TV ads aren’t even considered digital!
But fortunately yes – this example is an edge case!
What are the Limitations of Digital Marketing?
Digital marketing limitations relate to high competition, privacy issues, tech barriers, ad challenges, and results measurement (all of these apply to online marketing campaigns), as well as the difficulty in tracking engagement, high production costs, static content, limited reach, and complex distribution (in the case of offline marketing campaigns). Let’s delve a bit deeper into it.
High Competition (online digital campaigns)
As digital marketing has become accessible to businesses of all sizes, competition for online visibility is intense. Smaller businesses may struggle to stand out in a crowded digital space, especially if they lack the budget to compete with larger brands in ad bidding.
Rapidly Changing Trends (online digital campaigns)
Digital marketing trends evolve quickly, with new platforms and techniques emerging regularly. Keeping up with these changes can be challenging, requiring continuous adaptation and learning to stay relevant and effective. The best example are web algorithms (especially in search marketing), which constantly evolve, generating a need for constant knowledge updates and immediate reactions from marketers.
Dependency on Technology (online digital campaigns)
Digital marketing relies heavily on technology, which can be both a strength and a limitation. Technical glitches, software issues, and platform downtimes can disrupt campaigns and lead to missed opportunities or wasted budgets.
Ad Fatigue and Ad Blockers (online digital campaigns)
Constant exposure to online ads can lead to ad fatigue, where audiences start ignoring or even actively avoiding digital advertisements (e.g., using ad-blocking browser plug-ins or apps). This can reduce campaign effectiveness over time, especially if ads aren’t refreshed or adapted to audience interests.
Privacy Concerns (online digital campaigns)
With increased data collection, privacy concerns have grown among consumers who worry about how their information is used. Stricter data protection regulations (e.g., GDPR) limit the amount of personal data marketers can access, making personalization and targeting more challenging.
Measurement Challenges (online digital campaigns)
Although digital marketing is data-rich, interpreting the data accurately can be complex. Attribution issues, for example, make it hard to determine which channels or tactics drive conversions, complicating ROI assessment and decision-making.
Limited Interaction in Certain Industries (online digital campaigns)
Not all industries can fully capitalize on digital marketing’s interactive potential, particularly those targeting older demographics or sectors where face-to-face contact remains crucial. This can limit the effectiveness of certain campaigns or channels, making digital efforts less impactful.
Difficulty in Tracking Engagement (offline digital campaigns)
Tracking engagement in offline marketing campaigns can be challenging, as metrics like impressions or reach often rely on estimates rather than concrete data. This limitation means that understanding how customers interact with offline ads requires additional research, such as surveys or focus groups, which can be time-consuming.
High Production Costs (offline digital campaigns)
TV ads or billboard installations, typically come with higher production costs. Unlike digital ads (like Google Ads or Instagram Ads), these require substantial investment in creative development, media buying, and physical production, making them less budget-friendly for smaller businesses.
Static Content (offline digital campaigns)
Offline digital marketing content, such as digital banner ads or broadcast commercials, is often static and unchangeable once deployed. This rigidity limits a brand’s ability to update messaging or adjust visuals in real time, reducing the campaign’s adaptability to current trends or immediate feedback.
Limited Reach (offline digital campaigns)
Channels like in-game advertisements or local TV are interest and/or demographic-specific, decreasing the campaign’s overall reach. Unlike pure internet marketing, which can target a global audience instantly, digital offline campaigns usually reach more limited audiences.
What are the Limitations of Online Marketing?
Limitations of online marketing concern fast-changing trends, intense competition, digital ad churn, legal and privacy challenges, measurement difficulties, and industry sensitiveness (e.g., local trade services generally are not offered online). Have you heard this somewhere before? Yes, these are issues described in the previous point, when we discussed online digital campaigns! If you need more information on these points, just scroll up and read on.
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