What Is Digital Marketing?
Digital marketing is the process of using websites, apps, mobile devices, social media, search engines, and other digital channels to promote and sell products and services.
Here's what makes digital marketing different from other forms of marketing:
- Highly measurable results: You can track exactly how many people saw your ad, clicked your link, or made a purchase
- Targeted reach: You can show your message to specific audiences based on demographics, interests, or behaviors
- Real-time interaction: Customers can respond immediately by clicking, sharing, or buying
- Cost-effective: Many digital marketing tactics cost less than traditional advertising methods
For example, a local bakery might post photos on Instagram, which allows them to engage directly with their local audience and respond to comments in real time.
The bakery can also optimize their website to appear in search results for terms like “fresh bread near me,” targeting people who are actively searching for relevant products.
Finally, the baker can send weekly emails with special offers to ensure that only interested subscribers receive promotions.
Whether you're a Fortune 500 company or a one-person startup, you can use digital marketing channels to build awareness, generate leads, and drive sales.
Digital vs. Traditional vs. Inbound Marketing
Digital, traditional, and inbound marketing differ in channels, targeting methods, and how they engage customers. Here’s a breakdown of each type:
- Digital marketing uses online channels like websites, social media, and email to reach customers. It includes tactics like Google ads and Instagram posts.
- Traditional marketing relies on offline channels like TV commercials, print ads, billboards, and radio spots. It broadcasts messages to broad audiences.
- Inbound marketing can use both digital and traditional channels. The defining feature is that it focuses on creating valuable content that draws customers to you, rather than interrupting them with ads.
Most successful businesses use a mix of all three approaches, often with digital marketing serving as the foundation for measuring and optimizing efforts.
For example, a software company might:
- Use digital marketing to run LinkedIn ads targeting IT managers
- Use traditional marketing to sponsor a tech conference with branded banners
- Use inbound marketing to publish helpful guides that IT managers find through search engines
Why Does Digital Marketing Matter?
Digital marketing matters because it connects businesses with 5.56 billion internet users worldwide and offers measurable results that traditional marketing can’t match.
Your customers are online. Right now.
They search for products on Google, find brands on social media, and make purchase decisions based on online reviews.
The digital marketing statistics speak for themselves:
- Massive reach at lower cost: Digital ads can deliver $2 for every $1 spent, on average
- Mobile dominance: 63% of consumers prefer to find information about brands and products on mobile devices
- Customer expectations: Websites influence 97% of consumers’ purchasing decisions
For example, a local restaurant may run Instagram ads targeting nearby users searching for “dinner tonight,” track which posts drive the most reservations, and adjust their digital marketing strategy based on the data—all for less than the cost of a newspaper ad.
The bottom line: Digital marketing isn't just an option anymore. It's how businesses grow, compete, and survive in today's economy.
8 Types of Digital Marketing (with Examples)
Let’s explore nine types of digital marketing you can use to reach customers throughout their buying journeys:
Search Engine Optimization
Search engine optimization (SEO) is the process of optimizing your website to rank higher in organic (unpaid) search engine results for relevant keywords.
For example, when someone searches "best coffee shop near me," a coffee shop can use SEO to help their website appear in the top results.
The higher you rank, the more clicks and customers you can get.
Why It Works
Over 50% of website traffic comes from organic search, which makes SEO a powerful tool for online visibility. Ranking in the top three Google results is especially important, as those results capture 54% of all clicks. Users trust and click on the highest-ranked listings.
Example
A local plumber optimizes their website for "emergency plumber [city name].” As a result, their site ranks higher for urgent plumbing searches, and that contributes to more service calls.
Because SEO is a long-term, unpaid strategy. As the website maintains its ranking, it generates steady, organic traffic without ongoing costs.
Social Media Marketing
Social media marketing is using social platforms like Facebook, Instagram, TikTok, and LinkedIn to promote your brand and engage with customers.
You can create content, run targeted ads, and interact directly with your audience where they already spend time.
Each platform has its own strengths and audience demographics.
Why It Works
There are 5.42 billion social media users worldwide, which gives brands massive opportunities to connect with audiences where they already spend time.
Example
For example, a local bakery might post daily photos of fresh treats on Instagram, respond to customer comments, and run targeted ads to nearby users. This approach can increase both online engagement and foot traffic.
Social media lets you build relationships with customers—not just broadcast messages to them.
Email Marketing
Email marketing involves sending targeted messages directly to subscribers' inboxes to build relationships, promote products, and drive sales.
You collect email addresses from interested prospects and customers (e.g., by providing access to a downloadable resource in exchange for contact information), then send them regular newsletters, promotional offers, product updates, and/or educational content.
To enhance results, many email platforms now use AI to suggest optimal send times and subject lines based on subscriber behavior.
Why It Works
Email marketing delivers an average return on investment (ROI) of $42 for every $1 spent.
Example
An online clothing store sends weekly emails featuring new arrivals, exclusive discounts for subscribers, and styling tips. Subscribers click through to the website and make purchases at higher rates than social media followers.
Email marketing gives you direct access to your audience without relying on social media algorithms or paid ads.
Pay-Per-Click Advertising
Pay-per-click (PPC) advertising is a model where you pay each time someone clicks your ad. Ads appear on search engines, social media platforms, and other websites and apps.
You bid on keywords related to your business, and your ads show up when people search those terms if you perform well during the ad auction.
You pay only when someone clicks on your ad, which makes it a cost-effective way to drive targeted traffic.
Why It Works
PPC delivers $2 in revenue for every $1 spent on Google Ads, according to Google's economic impact research.
Platforms like Google Ads use AI to automatically optimize ad spend, making PPC more cost-efficient than ever.
Example
A dentist bids on the term "teeth whitening near me." Their ad appears at the top of Google search results. After 20 clicks at $3 each ($60 total), one click converts into a $500 treatment booking, which is a strong return on ad spend.
PPC offers instant visibility while you build your unpaid efforts like SEO.
Affiliate Marketing
Affiliate marketing is a performance-based approach where you partner with affiliates who promote your products or services in exchange for a commission. The commission can be based on sales, leads, or other actions, depending on the agreement.
Affiliates use their own websites, social media accounts, or email lists to recommend your products to their audience.
You pay only when the agreed-upon action is completed, which makes it a low-risk way to expand your reach.
Why It Works
The global affiliate marketing industry was valued at over $18 billion in 2024, and businesses earn an average of $6 to $12 for every dollar spent on affiliate programs.
Example
A software company partners with tech bloggers and YouTubers who review their product. When viewers click the affiliate's link and make a purchase, the affiliate earns a 20% commission.
Affiliate marketing helps you leverage other people's audiences and credibility to grow your business without upfront advertising costs.
Influencer Marketing
Influencer marketing involves partnering with content creators who have established audiences to promote your products or services through recommendations.
These partnerships can range from mega-influencers with millions of followers to micro-influencers with smaller but highly engaged communities.
The key is finding creators whose audience aligns with your target customers.
Why It Works
TikTok generated over $33 billion in advertising revenue in 2025, largely driven by influencer partnerships. Audiences trust recommendations from creators they follow more than traditional ads.
Example
A skin care brand partners with beauty influencers on Instagram and TikTok to create product reviews and tutorials. Followers use the influencer's discount code to make purchases, allowing the brand to track which partnerships drive the most sales.
Influencer marketing builds trust through endorsements from real people instead of direct advertising.
Mobile Marketing
Mobile marketing reaches customers through text messages, mobile apps, and mobile-optimized campaigns designed for smartphones and tablets.
This includes everything from promotional text messages and app notifications to mobile-specific ad campaigns and location-based marketing that targets users near your business.
Why It Works
Text messages have a 98% open rate—far higher than email—and 91% of consumers say they're interested in signing up for texts from businesses.
Example
A restaurant sends SMS alerts about daily specials to subscribers and uses location-based mobile ads to target people within a two-mile radius during lunch hours. They also send push notifications through their mobile app when customers are nearby.
Mobile marketing reaches customers where they spend most of their time: on their phones.
Further reading: What Is Mobile Advertising? Types, Tips, and Examples
AI-Powered Marketing
AI-powered marketing uses artificial intelligence to automate tasks, personalize customer experiences, and optimize campaigns across digital channels.
This includes AI-driven ad bidding, chatbots that qualify leads, predictive analytics for audience targeting, and tools that generate or optimize content at scale.
Why It Works
68% of businesses report higher content marketing and SEO ROI when using AI, according to Semrush research. AI-powered campaigns can automatically adjust targeting and spending based on real-time performance—optimizations that would take humans significantly longer to execute.
Example
An ecommerce store uses AI to automatically adjust ad bids across Google and Meta based on conversion data, recommend products based on browsing behavior, and generate personalized email subject lines for different customer segments. These optimizations run continuously without manual intervention.
AI-powered marketing lets you scale personalization and optimization in ways that would be impossible to do manually.
Further reading: Become an AI-Powered Marketer
How to Build a Digital Marketing Strategy That Works
Building a digital marketing strategy means creating a plan that aligns your marketing activities with specific business goals, target audiences, and measurable outcomes.
Here's how to build one that actually drives results:
1. Define SMART Goals
Set specific, measurable, achievable, relevant, and time-bound (SMART) goals before launching campaigns.
For example, instead of saying "increase sales," set a goal like, "Generate 50 new leads per month through content marketing within three months."
This clarity helps you choose the right tactics and allows you to measure success.
Common digital marketing goals include those related to increasing website traffic, generating leads, boosting brand awareness, improving conversion rates, or growing social media followers.
2. Understand Your Audience
Research your customers: their demographics, online behavior, and problems they need solved. Because understanding your audience allows you to target them with the right messages on the right platforms.
Create detailed buyer personas with information about your audience’s interests, pain points and preferred communication channels.
Tools like Google Analytics, social media insights, customer surveys, and Semrush's Traffic & Market tool can help you understand who your audience is and where they spend time online
3. Choose the Right Channels
Your website is the foundation of your digital presence. Make sure it's optimized for search before expanding.
Then, select two to three additional channels that align with your goals and where your audience is most active.
4. Set a Realistic Budget
Allocate your marketing budget based on your goals, chosen channels, and expected return on investment (ROI).
A common benchmark is spending 5%-10% of revenue on marketing, but this varies by industry and business stage. The average marketing budget is 9.4% of revenue, according to Deloitte's CMO Survey.
Start with what you can afford and scale as you see results.
Divide your budget across your chosen channels based on your priorities. If you need quick results, allocate more to paid advertising. If you're building for the long term, invest in SEO and content creation.
5. Create and Launch Content
Develop a content calendar that delivers consistent, valuable content across your chosen channels.
Focus on solving your audience's problems rather than only promoting products.
Mix educational content, behind-the-scenes glimpses, customer stories, and promotional messages.
And batch content creation to save time and maintain consistency across all platforms.
6. Track KPIs
Monitor the key performance indicators (KPIs) that directly align with your business goals.
KPIs might include website traffic, AI mentions, conversion rates, cost per acquisition, email open rates, and/or social media engagement rates.
Use tools like Google Analytics, social media analytics, email marketing platforms, and Semrush’s AI SEO Toolkit to track performance.
Set up regular reporting to review what's working and what needs improvement.
7. Optimize and Iterate
Test different approaches, analyze results, and refine your strategy based on data.
For example, you might run A/B tests on email subject lines, ad copy, and landing pages.
Focus on tactics that drive results and adjust or drop underperforming campaigns.
The Impact of AI on Digital Marketing (+ How to Adapt)
AI is impacting digital marketing by streamlining manual tasks and providing deep insights into performance. It’s also changing the search landscape as users turn to platforms like ChatGPT and Google’s AI Mode for answers.
AI is already embedded in the marketing tools you use every day:
- Google Ads campaigns let you use AI-powered Smart Bidding to adjust your bids in real time for maximum ROI
- Facebook’s Advantage+ campaigns automate creative, placement, and targeting based on user behavior
- AI chatbots can handle initial customer inquiries and qualify leads
- Semrush’s Content Toolkit uses AI to find topics, generate article drafts, and more
- Many email marketing platforms let you use AI to generate subject lines, optimize send times, and even predict which segments are most likely to convert
- Semrush’s AI SEO Toolkit provides AI-generated strategy suggestions to improve your visibility in platforms like ChatGPT
And more.
How to Use AI in Your Strategy
Here are some key ways to adapt your AI-driven marketing strategy:
- Start with what you have. Activate automated bidding in Google Ads or use predictive analytics in your email platform. Many of your existing tools have AI features built in.
- Clean up your data. AI tools work best with accurate information. Make sure your customer databases are up to date, duplicate contacts are removed, and your analytics tracking is properly configured.
- Let AI handle optimization, but stay in control. Use AI for repetitive tasks like bid adjustments and A/B testing, but review AI-generated content before publishing and keep humans responsible for strategy and creative direction.
The goal is to free up your time for strategic thinking while AI handles the data-heavy work.
FAQs About Digital Marketing
How Much Does Digital Marketing Cost?
Digital marketing costs vary by goals and channels. The average marketing budget is 9.4% of revenue, according to Deloitte's CMO Survey, but small businesses often start with 5%-10%.
You can begin with as little as $5-$10 per day for paid ads on platforms like Facebook or Google. Tactics like SEO, social media posting, and email marketing can be done at little to no cost beyond your time.
How Long Does It Take to See Results from Digital Marketing?
Results from digital marketing can vary by tactic and channel:
- Paid advertising (PPC, social media ads, etc.): Immediate traffic, but may take a few weeks to optimize
- Email marketing: Results within days of publishing campaigns
- Social media marketing: At least a few months to build engagement and a following
- SEO: Three to six months to see significant organic traffic growth is common
Start with channels that offer quick results, like paid ads or email, while building assets that can drive long-term value through SEO and AI search.
What's the Difference Between Digital Marketing and Social Media Marketing?
Social media marketing is a subset of digital marketing, which includes all online marketing activities like SEO, email, PPC, and more.
Social media marketing specifically focuses on platforms like Facebook, Instagram, LinkedIn, and TikTok.
Can I Do Digital Marketing Myself?
You can start with basic tactics like social media posting, email newsletters, and simple Google Ads campaigns.
Consider hiring help when:
- You lack time to consistently create content and manage campaigns
- You need specialized skills (e.g., advanced SEO or paid advertising)
- Your business generates enough revenue to justify the investment
- You want to scale beyond what you can handle alone
Many businesses begin DIY and bring in experts as they grow.
How Do I Measure Digital Marketing Success?
Measure success using metrics that align with your marketing tactics and that tie back to your business goals. Those metrics could include website traffic, conversion rates, and ROI.
Key metrics can include:
- Website traffic: How many people visit your site
- Conversion rate: Percentage of visitors who complete desired actions (buy, sign up, etc.)
- Cost per acquisition: How much you spend to acquire a new customer
- ROI: Revenue generated compared to marketing spend
- Email subscribers and open rates: Building and engaging your email list
What's the Most Important Type of Digital Marketing?
There's no single most important type of digital marketing, but most businesses should start with a website optimized for search (SEO), email marketing, and one social media platform where their audience is active.
Build these core elements first, then expand to additional channels as you grow.
Ready to take your digital marketing strategy to the next level?
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