Digital marketing: how does it work?
What is digital marketing and how does it work? Get to grips with the basics in our simple beginner's guide.

Were you around in 1994? If so, you may remember a small but significant moment in the history of marketing.
That year, American telecoms company AT&T launched the first-ever clickable banner ad. Within
four months, "44% of all people who saw it clicked on the ad".
Today, clickable banner ads are ten-a-penny. But this moment in marketing history marked a shift from offline channels like print, TV and radio to the digital marketing landscape we know today.
If you run a small business, chances are you've heard about digital marketing. You may have a nagging sense that it's something you
should be doing.
At My Digital Hero, digital marketing is our bread and butter. But we know there are still many small firms that are reluctant to get involved. They would rather rely on word of mouth and traditional offline methods to promote their business.
And you know what? Some of them may be right. But nine times out of 10, digital marketing is the way to go. Here's why.
Why is digital marketing better than traditional marketing?
Traditional marketing casts a wide net. You put a poster in a bus stop or flyers in a cafe and thousands of people see them each day. But are all those people interested in your services? It seems unlikely.
Digital marketing enables you to be more precise in your marketing. You can target advertising at people based on their interests, demographics and buying history. You're potentially reaching fewer people – but those people are more likely to buy your products or services.
It's not unlike the famous story about the first-ever gig by art-rock legends The Velvet Underground. Only five people were there, they say, but every one of them formed a band.
Now we're not saying that digital marketing will only get you five customers. If we were, you'd be right to walk away. However, we are saying that digital marketing reaches the
right people – not just any Tom, Dick or Sally.
Another advantage is that social media and email marketing let you interact with customers more readily than traditional marketing methods. You can be a friendly, helpful online presence – a surefire way to get people to share your business online or talk about you offline.
That's the sell. Digital marketing increases engagement, drives conversions and reaches more of the
right
customers. But what does it consist of?
A brief introduction to the digital marketing toolkit
Just like traditional marketing, digital marketing covers a number of different activities and strategies. Taken individually, they're unlikely to transform your business. Taken together, they can increase site traffic and drive sales.
In this guide, we'll cover eight of the main digital marketing activities:
- Search engine optimisation (SEO)
- Content marketing
- Social media marketing
- Email marketing
- Lead generation
- Pay-per-click (PPC) advertising
- Affiliate marketing
- Mobile marketing
First, there's
search engine optimisation (SEO). The fact is that Google needs some gentle persuasion. If someone searches for fishnets in the Faroe Islands, Google won't necessarily serve up your fishnet factory in the Faroes. It will only do this if your website is optimised.
Among other things, this involves skilfully embedding relevant keywords – words and phrases that relate to your company – into your content. It also involves producing relevant, readable content that speaks to your audience and lets Google know you're a reputable outfit.
This second aspect is known as
"content marketing". It's often a combination of relevant blog posts and video content. But one thing's for sure: it needs to be good quality to make a difference.
Poorly written or AI-written blog posts
aren't going to keep people on your site or encourage them to click through to your landing page. The same goes for slapdash video content. Quality is essential to improve your reputation in the eyes of both potential customers
and search engines.
Alongside content marketing and SEO, digital marketing includes
social media marketing. This is all about using your Facebook, Instagram or TikTok account to build brand awareness, engage with customers and drive traffic to your site.
Then there's email marketing. This involves nurturing relationships with existing customers through targeted email campaigns. These could offer behind-the-scenes info, loyalty schemes and more.
Another form of email marketing involves
lead generation – approaching potential customers and telling them what you're made of. Like content marketing, email marketing needs to be done by talented professionals if you want it to make a positive difference.
Next up is
pay-per-click (PPC) advertising. This involves paying an advertising platform – often Google Ads – to display ads to potential customers. You get charged (pay) every time someone clicks on the ad (per click).
Then there's
affiliate marketing. This involves partnering with other businesses or individuals to promote your products or services.
Finally, there's
mobile marketing. It's no secret that people are on their phones a lot these days. Yet many local firms fail to make their websites readable on mobile.
Making web content "mobile-first" is an essential part of digital marketing.
Sounds like a lot, right? Yet it's only as a package that these methods help businesses grow. This is a key reason why many small businesses outsource digital marketing to an agency like ours.
Why work with a digital marketing agency?
In our view, there are two main reasons why you should work with a digital marketing agency like ours. One: it will save you time and money. Two: a digital marketing agency has the experience and expertise to stay on top of a changing marketing landscape.
If you're a small business, chances are you're not exactly
brimming with free time. In fact, you're probably wrestling with a Lovecraftian to-do list that grows, shape-shifts and sprouts new tentacles daily. A digital marketing agency can take the reins and let you focus on your core competencies.
Secondly, digital marketing agencies live, breathe and sleep digital marketing. This expertise is crucial at a time when the landscape of digital marketing is continuously evolving.
So, if you want to cut some slack and leverage expertise,
get in touch with My Digital Hero today. We'd love to help you take your business's online presence to the next level.
