Digital marketing: what is it in simple terms and how it works

Digital marketing

Digital sounds everywhere today, but in practice, entrepreneurs often have one question: what exactly is behind this word and how does it help to earn money, and not just “be online”? Many people intuitively feel that online promotion is no longer an option but a necessity, but they are drowning in terms and tools. In this article, we'll look at what digital is in simple words, show the logic of how channels work and connect them with understandable numbers. The text is useful for owners, marketers, and anyone who wants to build a systematic approach rather than a set of chaotic activities.

Digital marketing and its place in business

Simply put, digital marketing is a system that helps attract and retain customers through websites, social networks, online advertising, email, messengers, and other digital channels. This is not a separate “ad magic”, but part of a business strategy: you consciously build a person's journey from first touch to repeat purchase. When more than 60% of people in the world consume online content every day, ignoring Internet communication means giving the market to competitors. Digital technologies allow you to be close to your audience 24/7 in familiar environments. As a result, this approach turns traffic into predictable revenue rather than abstract “impressions”.

What's different from traditional marketing

Classical marketing is based on offline formats: outdoor advertising, TV, radio, and print media. Digital marketing works where a user can click, go to the site, submit a request and get an answer right away. The main difference is measurability: each channel has statistics, contact costs, and a clear contribution to revenue. You can turn off an ineffective campaign and strengthen the one that brings in customers rather than pink reports. As a result, the brand does not spend money on abstract coverage, but on specific customer actions.

When digital is critical: business stages and niches

For a local offline business with minimal competition, you can still live for some time without an active online presence, but the denser the market, the more digital marketing is needed. Startups use it to quickly test hypotheses and monetization models. Small businesses are solving the problem of a stable flow of applications with a clear lead price. In large companies, Internet communications are becoming the basis for incoming demand and sales support. In eCommerce, EdTech, IT services and other online niches, online advertising activity is essentially no longer a choice — users compare offers and make decisions in the digital environment.

Digital marketing: channel map

To avoid confusion, it's useful to think of channels as a map, where each element is responsible for its own stage in the customer journey. It includes search engines, social networks, media and contextual advertising, email, messengers, video formats, and mobile solutions. Some tools are more about visibility, others are about leads and sales, and others are about retention and repeat purchases. It is not a separate “magic button” that is important, but a bundle of channels that works as a single system. When a strategy is not enough, online activity turns into a chaotic set of tests with no clear result.

SEO and content marketing

Search engine optimization SEO and the content approach are responsible for organic traffic from search engines. You create articles, reviews, and instructions that answer real questions from the audience, and optimization helps these materials rise in the search results. Such traffic is growing gradually, but it lasts a long time and gives more interested visitors. Research shows that users are more likely to trust search results than banners, especially on complex topics. In the long run, this turns into a steady flow of hits without constantly buying clicks.

SEO and content marketing

SMM and community

Working in social networks means not only scheduled posts, but a constant dialogue with people. It's not the perfect banners that matter here, but the lively tone of communication, responses to comments, the response to feedback, and the ability to engage the audience in the discussion. Through social networks, the brand shows values, expertise and a human face that is difficult to convey in dry texts.

Typical tasks SMM, which enhance online promotion:

  • maintaining a recognizable visual style and regular content;
  • increased engagement and live dialogue with the target audience in comments and directs;
  • launching integrations and influencer marketing through bloggers and opinion leaders.

After the introduction of such practices, social accounts cease to be a “showcase” and become a working channel of trust and initial requests.

Advertising (PPC/target) and retargeting

Paid campaigns are a quick way to draw attention to a product. Contextual and targeted advertising are customizable according to Cost Per Click, Cost Per Mille, Cost Per Action models and allow you to flexibly manage your budget. It is important to test hypotheses about offers, creatives and audiences, and make decisions based on data rather than intuition. Retargeting brings back people who have already been to the site, added an item to the cart, or read the content but haven't taken the step towards buying. Together, these tools help you quickly launch promotions, sales, and new products.

Email/SMS and marketing automation

Communication with the existing base is one of the most underrated blocks. Through email marketing and SMS, companies share useful content, personal offers and news, not just promotional codes. This is where segmentation and trigger chains come into play: different scenarios for new subscribers, active customers, and those who haven't shown interest for a long time. The combination of emails, messenger messages and automated reminders significantly relieves the sales team's workload and increases the conversion rate of repeat deals. In such a system, a digital marketer is not an “email sender” but a touch chain architect.

Video marketing and short-video

Short videos on YouTube Shorts, Reels, and TikTok are gaining reach faster than most formats today. It's easier for people to watch 30-60 seconds of live video than to read a long text. A brand can show a product in action, answer common questions, and alleviate the audience's fears. Platforms are actively promoting such formats, which means that even small accounts can quickly increase views. Good videos then work like “evergreen” materials: they are found through search and recommendations long after publication.

How digital marketing works: funnel and attribution

For online activity to work, it is important to look not only at individual campaigns, but at the entire funnel. The AIDA and SEE—THINK—DO—CARE models help describe a person's journey from first contact to a loyal customer. Different tools work at different stages: somewhere you need reach and visibility, somewhere you need an application, and then you need service and retention. In this context, digital is not “about advertising” but about the user journey and managing the brand experience.

AIDA/SEE—THINK—DO—CARE stages

Let's simplify the customer journey in four steps. At the See/attention stage, a person first notices a brand through an advertisement, publication, or recommendation from a friend. In the Think/Interest block, he studies the site, materials, cases, and compares alternatives. The Do/Action phase is the moment when a user makes a request, places an order or subscribes to a newsletter. Finally, CARE is a story about service, upselling, useful content, and loyalty programs. At every step, it is digital marketing that connects different touches into a single chain.

Multichannel attribution

It is rare that a sale takes place after a single click. A person could see the banner, then come back for a search term, then return to the email and only then buy it. If you count the result only by the “last click”, some channels will look useless, although they played an important role in the decision. Therefore, analytics uses different attribution models: first click, last click, linear, U-shaped, data-driven. A multichannel view helps to honestly assess the contribution of content, social media, and advertising to the overall result.

End-to-end analytics: from click to profit

End-to-end analytics connects data from advertising accounts, websites, CRM and financial statements. This allows you to see which campaigns bring not only leads, but also real paid deals with the right margin. This model shows the customer's journey from first touch to repeat purchase and counts as ROMI, not just cost per click. In practice, digital is a managed investment tool: you know exactly which activities should be scaled and which ones should be disabled.

Digital marketing is about choosing channels for your goal and budget

No business needs “all channels at once” — it's important to choose a bundle for tasks, a check and a planning horizon. At the start, they often focus on clear sources of applications and supplement them with long-term investments in content and SEO. For mature companies, the priority is to strengthen the brand and the efficiency of the funnel at every stage. It is important to honestly assess the resources of the team and contractors so as not to launch dozens of tools without the ability to operate them normally. The right choice of channels turns chaotic experiments into a consistent marketing strategy.

B2B vs B2C

Fast vs long channels: waiting times

Some sources give results almost immediately, while others take months. If you don't take this into account, it's easy to get disappointed in a good instrument simply because it didn't accelerate.

The channels can be conditionally divided as follows:

  • fast: contextual advertising, target, simple promotional campaigns and landing pages;
  • medium-term: email marketing, retargeting, affiliate marketing and collaborations with partners;
  • long: SEO search engine optimization, blog, YouTube, social media development.

Understanding this balance helps you simultaneously meet short-term lead goals and build a foundation for the future.

B2B vs B2C: differences in approaches

In B2C, decisions are often made faster, emotions play a big role, and creativity and visuals can greatly influence conversions. In B2B, the deal is longer, multiple stakeholders are involved, and more attention is paid to expert content and personal contacts. Therefore, it is logical for B2B companies to focus on web events, case studies, email and specialized social networks, while B2C should use short-videos, lead forms and promotions more actively. In both cases, digital marketing is about building a chain of touches rather than betting on one “perfect” tool.

Prioritizing ICE and team resources

In reality, there are always more promotion ideas than time and budget. This is where the simple ICE model (Impact, Confidence, Effort) helps, which allows you to set priorities.

The process might look like this:

  • write out all hypotheses by channels and formats that you want to test;
  • assess the impact and complexity of the launch on a scale from 1 to 10 and calculate the overall score;
  • choose 3-5 activities with the highest potential and launch them first.

This approach keeps digital marketing within the framework of a managed project, rather than an endless stream of unrelated tasks.

Digital marketing is basic metrics and KPIs

Measurable benchmarks are needed to understand whether a strategy is working. You can look at hundreds of indicators, but it's better to put a limited set of key metrics into a business outline. They should link channel activity to money, not just clicks and likes. Then the discussion with the owner or director is built around profitability and growth, rather than around the abstract “we think it's better”.

Leads, CPL, CAC, LTV, ROMI

Practice shows that even a small set of numbers helps to clean up reporting.

This basic kit is often used:

  • leads — the number of hits that actually relate to the target audience;
  • CPL — the cost of one lead from a specific traffic source;
  • CAC — the cost of attracting a client, taking into account all digital channels and works;
  • LTV — the customer's lifetime value, how much he brings in over the entire period of cooperation;
  • ROMI is the return on marketing, the ratio of profit to investment in promotion.

At the channel level, they complete the picture with CTR, site conversion, viewing depth, and other behavioral indicators. This makes it clear exactly where the funnel is “sinking” and what should be optimized first.

Micro vs macro conversions and their relationship to business goals

In addition to sales and orders, it is useful to track people's intermediate actions on the site and in channels. Micro conversions include subscriptions, clicks on important buttons, viewing key pages, and downloading materials. They help you understand how content and UX lead people to the target action. If intermediate metrics are growing but there are no deals, then the problem lies in the final steps — the application form, communication between managers or the offer. It is important here that a digital marketer is not a “person for advertising”, but a partner who looks at the entire chain, including sales.

Conclusion: What is digital marketing in one paragraph

Let's sum it up. In practice, digital marketing is not a fashionable term, but a bundle of channels, content, analytics and processes that helps you consistently receive orders and sales from the online environment. This is an approach in which decisions are made based on data rather than guesswork, and budgets are seen as investments in growth rather than as inevitable spending. When a strategy is built, digital tools start working in concert and support each other. It is in this format that Locomotive specialists help businesses use digital opportunities to the fullest, rather than “just be online”.

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