The whirlwind of change sweeping through advertising and digital marketing today presents a dizzying array of options that can be challenging even for established brands to stay on top of. AI, machine learning and data privacy issues are upending many standard brand-building practices and forcing marketers to rethink their approaches.

Change is happening so quickly that many marketers are finding what works today may become obsolete in just a few months.

Given that reality, imagine the challenges marketers at emerging companies face in trying to make sense of their current advertising and marketing options. This can be particularly difficult if they lack extensive experience with digital marketing or if they’re still struggling to define their target customer segments.

The move toward digital and the impact on branding

There’s been a recent, massive shift in global ad spending toward digital media. Digital ad spending makes up about 63% of total advertising budgets worldwide. The remaining spending is spread across traditional media (TV, radio, print, etc.). This is a big deal because it shows that digital-first strategies are dominating, with projections to hit over $600 billion globally by the end of 2024.

If you examine digital ad spending more closely, the budget split between brand-building and performance-driven advertising is interesting. Around 60% of digital ad spending is dedicated to performance marketing—things like paid search, social ads and direct response campaigns that are all about quick ROI. The other 40% goes toward brand-building activities that are more about long-term perception and loyalty.

Keep in mind that traditional media tends to lean more toward brand-building. It’s all about broad reach and creating familiarity, and TV remains the go-to for consistent exposure and making sure your brand sticks.

Recently, there’s been a general movement away from broad, one-size-fits-all campaigns to highly targeted, data-driven strategies across multiple channels. There are a lot of upsides to this—like precision targeting and real-time engagement—but it also means there are some challenges like platform dependency, data privacy issues and overwhelming consumers with too much content.

The advantages of digital branding for emerging companies

Let’s take a closer look at some of the key benefits digital branding offers.

1. Enhanced audience segmentation

Digital marketing offers a level of audience segmentation that was virtually impossible before. Brands can now create hyper-segmented campaigns that speak directly to different groups.

Targeted content can bump sales by 20%, and personalized emails can drive up transaction rates sixfold. This is important because 80% of consumers are more likely to buy when they feel a brand really “gets” them and offers something personal.

2. More consistent branding

Having consistent branding across multiple channels is critical. People remember brands better—revenue increases show by as much as 23%—if they see consistent visuals and messaging across platforms, such as social media, websites and email. Digital media makes it easier to maintain consistent colors, tone and typography everywhere.

3. Real time performance tracking

One of digital media’s biggest assets is that it enables you to see how your branding is performing in real time and adjust on the go. Using brand tracking tools like Net Promoter Score and brand lift studies provides timely details on where you stand with your customers and enables you to make adjustments as needed.

4. More personalized customer journeys

Brands can use the enhanced data digital media provides to improve each customer’s brand journey, and that can really pay off. About 57% of customers say they’re willing to share data if it means getting personalized offers, and personalized product recommendations can lead to a 15-20% increase in conversions.

5. A more effective media mix

Digital media helps you create a more effective mix of paid, owned and earned media that can increase brand awareness. Developing an effective balance of paid ads (for visibility), owned channels like your website or blog (to reinforce brand values), and earned media like reviews or word of mouth (to build trust) can help companies maximize the branding opportunities open to them.

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The challenges of digital media

It’s important to remember that for all these advantages, digital marketing does come with drawbacks and pitfalls that many companies face. These include the following.

1. Customer oversaturation

Because digital media can be less expensive and easier to use, digital audiences are bombarded with content. The result is that people just tune out. Known as “banner blindness,” some consumers admit they ignore online ads completely. It’s a challenge to stand out amid all the noise.

2. Rapid spread of negative information

The prevalence of online reviews and the growth of social media can give an isolated negative experience or a cranky customer a lot more reach. About 93% of consumers read reviews before engaging with a brand, and about the same percent of consumers admit they’ve avoided engaging with a brand because of negative reviews. The speed at which things can go viral means brands need to be ready to manage their reputation at a moment’s notice.

3. Customer privacy issues

Digital media makes it much easier to collect extensive customer data, but the regular recurrence of data breaches undermines customer trust, which negatively impacts brand value. Also, government actions like the General Data Protection Regulation (GDPR) put pressure on brands, as companies have collectively been assessed over $300 million in fines since GDPR was enacted.

4. The need to regularly refresh content

Digital branding enhances your ability to contact customers regularly, and brands that publish consistently generate up to 3.5 times more traffic. But stale content leads to underperformance, and it’s a big challenge to constantly keep your content fresh.

5. Social media unpredictability

Partnering with platforms like Facebook can certainly enhance brand visibility, but those platforms aren’t always reliable. When Facebook changed its algorithm back in 2016, organic reach fell by up to 52%. That forces brands to invest more in paid ads, which can get expensive.

Four key takeaways for marketers at emerging companies

Coming to terms with these advantages and drawbacks may present a bit of a challenge to marketers with less experience in digital. So here are four key takeaways you can use to make the best use of digital media in your situation.

1. Explore AI and machine learning

These developments are game-changers for how you can understand and connect with your audience. By bringing these technologies into your toolkit, you can dig into big data for insights, automate personalized content and tweak campaigns on the fly.

Always use AI ethically and integrate it with a human touch that resonates with people. Balancing tech and personal interaction can lead to more meaningful connections and better results.

2. Strive to be omnichannel

Your customers are all over the place—social media, emails, apps, TV and print. By embracing an omnichannel approach, you can meet your customers wherever they happen to be.

Also, even with the growing prevalence of digital channels, traditional media like television, radio and print advertising still hold significant value. These channels offer broader reach, higher brand recall and a more immersive customer experience.

A well-rounded marketing strategy should incorporate both digital and traditional media for optimal results. Some emerging companies have begun exploring media-for-capital arrangements that offer growth-stage startups partnerships with established traditional media companies. These partnerships give young startups the ability to build their brand using the media company’s channels in exchange for shares in the startup.

3. Focus on first-party data collection

Gathering data directly from your customers—with their consent—builds trust and lets you personalize your marketing in a way that feels right. Consumers are willing to share their data as long as companies are honest about how they use it. Being transparent builds stronger relationships and keeps you on the right side of privacy laws.

4. Customer segmentation is key

Tailoring your digital marketing to individual customers or specific groups can ramp up engagement and conversion rates. By using data analytics, you can get a clearer understanding of what your customers are looking for, helping you deliver more personalized offers.

Conclusion

The rapid growth of digital marketing and advertising and the significant speed of change in this field can definitely seem bewildering to marketers at emerging companies. And, as we’ve just discussed, there are real risks associated with some of these tools when used insufficiently or inappropriately.

However, the advantages of integrating digital media into your brand strategy are undeniable and in today’s landscape, it’s essential to compete effectively. By understanding these trends, you’re not only positioning your brand for growth but also building meaningful connections with your target audience. Embrace these tools confidently to stay ahead and make a lasting impact.

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