With the explosion of digital media, people began to engage with each other – and the companies they did business with – in new ways. The relevance of traditional print and broadcast channels declined, completely changing the consumer-corporation dynamic. Digital channels opened doors for consumers. No longer passive participants in a one-sided marketing conversation, consumers became empowered authors, publishers and critics. The digital landscape is participatory, an area where consumers exchange ideas. Marketers no longer drive the discussion. Everyday consumers are now the style makers and trendsetters.
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, 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.
Social media marketing provides organizations with a way to connect with their customers. However, organizations must protect their information as well as closely watch comments and concerns on the social media they use. A flash poll done on 1225 IT executives from 33 countries revealed that social media mishaps caused organizations a combined $4.3 million in damages in 2010. The top three social media incidents an organization faced during the previous year included employees sharing too much information in public forums, loss or exposure of confidential information, and increased exposure to litigation. Due to the viral nature of the Internet, a mistake by a single employee has in some cases shown to result in devastating consequences for organizations. An example of a social media mishap includes designer Kenneth Cole's Twitter mishap in 2011. When Kenneth Cole tweeted, "Millions are in uproar in #Cairo. Rumor has they heard our new spring collection is now available online at [Kenneth Cole's website]". This reference to the 2011 Egyptian revolution drew an objection from the public; it was widely objected to on the Internet. Kenneth Cole realized his mistake shortly after and responded with a statement apologizing for the tweet.
The digital marketer usually focuses on a different key performance indicator (KPI) for each channel so they can properly measure the company's performance across each one. A digital marketer who's in charge of SEO, for example, measures their website's "organic traffic" -- of that traffic coming from website visitors who found a page of the business's website via a Google search.
Since social media marketing first came to be, strategists and markets have been getting smarter and more careful with the way they go about collecting information and distributing advertisements. With the presence of data collecting companies, there is no longer a need to target specific audiences. This can be seen as a large ethical gray area. For many users, this is a breach of privacy, but there are no laws that prevent these companies from using the information provided on their websites. Companies like Equifax, Inc., TransUnion Corp, and LexisNexis Group thrive on collecting and sharing personal information of social media users. In 2012, Facebook purchased information from 70 million households from a third party company called Datalogix. Facebook later revealed that they purchased the information in order to create a more efficient advertising service.
Digital marketing is defined by the use of numerous digital tactics and channels to connect with customers where they spend much of their time: online. From the website itself to a business's online branding assets -- digital advertising, email marketing, online brochures, and beyond -- there's a spectrum of tactics that fall under the umbrella of "digital marketing."