Dictionary

Digital marketing

“The use of online channels and technology to reach audiences, create demand and measure marketing results.”

Why digital marketing matters to a first-time founder

Digital channels let a small company test audiences, messages and offers without buying national media. They also create privacy, consent and platform-dependence risks. Founders who track only clicks can spend heavily on attention that never becomes qualified leads, retained customers or profitable revenue.

Examples of digital marketing

A founder spends ¥120,000 on search adverts for a ¥6,000 monthly service. The campaign generates 80 trial sign-ups and 12 paying customers, so customer acquisition cost is ¥10,000 each before staff time. Comparing that cost with gross margin and retention shows whether the campaign can scale.

Common misunderstanding

Digital marketing is broader than social media and is not automatically performance marketing. It can include search, email, websites, online advertising, content and partnerships. Some results are measurable, but attribution models still estimate which touchpoint caused a sale and can overstate a channel’s contribution.

When to use it

Use it when the target customer can be reached online and you can define a measurable next action. Start with one audience, one offer and one channel, then track cost through to revenue and retention. Follow applicable privacy, cookie, advertising and electronic-marketing rules in each jurisdiction.