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What Is Digital Marketing? What's The Hype About? (#63)

 



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What Is Digital Marketing? What's the Hype About?

Digital Marketing has become one of the most talked-about topics of the past few years. It's a bit different from our usual finance-focused content, but it ties in more closely than you might expect.

Here's what we'll cover:

  1. What is Digital Marketing?
  2. Key metrics and terms — CPC, CPM, CPA, CTR, and more
  3. Why Digital Marketing has become such a big deal

What Is Digital Marketing?

Digital Marketing is simply marketing conducted through digital channels — the tools and platforms businesses use to advertise and reach people online, rather than through traditional offline advertising.

Key Digital Marketing Metrics, Explained

CPC (Cost Per Click)

A metric measuring how many people clicked on an ad, and the amount an advertiser pays the platform per click.

CPC = Total Ad Spend ÷ Total Clicks

CPM (Cost Per Mille)

CPM measures cost per 1,000 ad impressions (the "M" comes from the Roman numeral for 1,000). It tracks how many times an ad was shown — regardless of whether it was actually clicked.

CPA (Cost Per Acquisition)

CPA measures the cost associated with someone actually completing a purchase (or other desired action) after seeing an ad — the metric advertisers ultimately care about most, since it reflects real conversions rather than just clicks or views.

CTR (Click-Through Rate)

CTR measures what percentage of people who saw an ad actually clicked on it.

CTR = (Total Clicks ÷ Total Impressions) × 100

Example: if an ad received 2 clicks out of 20 impressions:

(2 ÷ 20) × 100 = 10%

Target Audience

A company's target audience is the specific group of people most likely to actually buy its product or use its service.

Example: a new insurance company wants to grow its customer base. Rather than advertising broadly, it focuses on people actively searching for insurance — its target audience — and reaches them through the platforms those people already use: social media (Facebook, Instagram, LinkedIn, Pinterest, and similar), along with ranking on Google through content and search visibility.

→ Related: Sales Lessons: Understanding the Buyer(#36) — the target audience concept applies directly to sales too.

Keyword Research

Keyword research identifies which search terms people use most often around a given topic. Businesses use this to decide where to advertise and what content to create, in order to show up where their audience is already searching.

Example: an insurance company might find that "insurance" is a heavily searched term, and focus both its ad placements and its content strategy around that keyword and related ones.

SEO (Search Engine Optimization)

SEO is the practice of improving a website's or article's ranking in search engine results. Keyword research is a core part of SEO — businesses use it to write and structure content that's more likely to rank and be discovered by their target audience.

Social Media Marketing

Advertising a product or service directly through social media platforms — straightforward, and effective simply because so much of the population spends significant time on these platforms already.

Email Marketing

Businesses collect email addresses (often through their website, or from existing customers) and use them to inform people about new products, promotions, or updates — with the goal of converting interest into a purchase.

If you're running an online business and want to grow your email list, tools like Hello Bar are built specifically to help convert website visitors into subscribers and leads.

What's the Hype About?

As the world has shifted rapidly from offline to online — more people shopping digitally rather than visiting physical stores — it makes sense that businesses have followed suit. That shift is exactly why Digital Marketing has become so in-demand: it's how businesses now reach people where they actually spend their time and attention.

A Personal Note

Blogging has genuinely deepened my own understanding of Digital Marketing — bloggers use many of the same tools discussed here, particularly SEO and social media marketing, to grow an audience and drive traffic.

→ Related: All You Need to Know About Blogging!(#70) — more on my own blogging journey and what I've learned along the way.

Interested in a deeper dive into SEO specifically, or any of these topics? Let me know in the comments. Thanks for reading.

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