Written by Tatiana Ustimenco
The expansion of new technologies drastically changed the marketing strategies used by small businesses. While just a decade ago they were mostly relying on establishing their offline presence and building local connections, now the role of digital marketing is growing immense, as it was illustrated in a recent Forbes report. While traditional media retains its value for some businesses, the role of the digital space is growing. As an example, 70% of small businesses allocate some budget for social media marketing, with over a quarter of them spending 10% to 30% of their advertising budget in that direction.
Moreover, the U.S. Chamber of Commerce states that leveraging the newest technologies, such as AI and AR, will play a crucial role. Andrii Holubenko, a digital market expert who works on implementing innovative technologies in digital marketing to make them available to small- and medium-sized businesses in the US, shares his insights regarding the current state of the market and its most significant trends.
The Further Development of Existing Trends
Several trends which now play a significant role in the field of digital marketing are rooted in the events of the previous years. One of the clearest examples was the changes that emerged during the COVID-19 pandemic. While the businesses needed to rapidly adapt to the new environment, changing their processes, from interactions with customers to the work environments, some of these new developments stayed even after life had mostly returned to normal.
“Remote operations mean more than a new approach to work,” comments Andrii Holubenko. “For many businesses, it also meant reaching out to a whole new level in terms of interacting with customers and getting access to the new talent pool.” As a result, many businesses discovered new opportunities from growth and expanding, which, in turn, created the demand for the new relevant and flexible digital tools which help them to realize these goals.
The Impact of Emerging Technology
Leveraging the newest technological advances can have even more impact on smaller- and medium-sized businesses than for larger companies, as it allows them to edge more competitive advantage and free resources, which are often scarce. With more than ten years of experience in the field of Digital Marketing and the current role of a Digital Media Director at the OMD Optimum Media Ukraine, Andrii Holubenko has seen several waves of technological advancements coming to the market. “Rapid changes are inherent to all digital industries,” he states, “so being able to adapt your strategies to these new developments is a vital skill for any business, whether it is a local store or an international company”.
For many companies, embracing new digital marketing technologies might mean cutting costs while getting a more relevant picture of the audience and, consequently, better targeting for the advertisements. A great example of this approach is a platform for programmatic advertising, Fusify.io which development Andrii Holubenko took part in. It provides businesses with a set of digital tools for identifying target audiences and strategizing effective and relevant marketing campaigns. “This is just one example of what modern technologies, such as machine learning, can bring to the world of digital advertising”, adds Andrii Holubenko, “Finding the ways to put these technologies to use for our clients is one of the important fields of my current work.
New Challenges of the Digital World
While these technological advancements open new opportunities for businesses, they also have their flip side, bringing new challenges to the table. One of them is a growing level of competition. By focusing their advertising efforts on traditional media, the businesses remained within their local niche. However, by growing their online presence, they can reach a wider audience but have to compete for its attention with a wider number of rivals.
Another change the companies have to face is a growing demand for transparency. Social media gives customers an opportunity to reach out to brands directly, and the impression the brand makes through its online presence may impact their choice. “A company needs to make a conscious effort to build its online image,” notes Andrii, describing his experience of launching new products in the Ukrainian market. “And this, in turn, requires a meaningful and strategic approach to all aspects of a marketing campaign.” Having an accessible tool that allows a business to plan, analyze, and adjust the campaign can play a crucial role.
While it is hard to predict which developments we will see in digital marketing in two or five years, it can be said for sure that new technologies will become a prominent feature of the landscape. “The significance of using appropriate digital marketing tools is hard to overestimate,” concludes Andrii Holubenko, “Eventually, most businesses will face the need to embrace innovative tools and techniques to keep a competitive advantage and continue to grow.” Time will tell what forms these innovations will take in practice.