Moving to the core question how does digital marketing industry works? How do the people make money here?
Before we start, Let us revise the fundamental fact:
Who needs Digital Marketing and why?
Every business person, or Individual; who wants to promote his business, or create and establish brand awareness makes use of digital marketing techniques and platforms.
Let us understand the roles of the people on Internet.
All business people want to invite consumers through Advertisements. Here we will call them “Sellers”.
Sellers earn money exactly as they do in traditional format. They put money to advertise their products, and try to sell them. Buyers purchase the product and sellers get money. Simple!!!
Now on the internet we can categorize these “Sellers” in two categories:
- Offline Sellers: Buyers ultimately, physically visit the stores and purchase the products or services. Some Examples: Real Estate Consultants, banks, cosmetics, malls, shopping centres, clothing, mobile phones and services.
- Online Sellers: Sellers purchase the things on the digital devices through Apps or websites. Examples : a) Online Stores for shopping : Shopify, Amazon etc. ; b)Online booking Websites (travel, Food, Movies Etc.) : make my trip, redbus, bookmyshow, zomatto etc.; c:online Services (Online Doctors, tutors Etc.) : urban clap, practo etc.
Now all of these sellers; weather sellers or buyers, earn money by ultimately selling their products or services.
Digital Marketing experts/ Agencies:
Digital Marketing Agencies or Experts are the people, who uses all the platforms of internet marketing, [ namely emails, Social Media Platforms, Broadcasting Media Platforms, search Engines, etc.;]; to deliver seller’s product details to the end customers. Their job is to approach the buyer to the most an attractive way possible, so that the buyer gets motivated to purchase that product. And hence they play a big role in cash flowing between Consumers to Sellers.
Sellers pay Digital Marketing people to promote their business online.
Online Publishing / Broadcasting platforms :
There is one more layer between sellers and users; Broadcasting and publication platforms. Youtube channels, or video sharing apps; and Blogs. Let us see how do Bloggers and Youtubers earn money.
One of the most common ways bloggers make their money is through placing Ads on their site. Ads are usually banners that bloggers place in their content or side bar. It is called PPC Ads, each time a user (reader) clicks on a Ad, the blogger get paid for that Ad.
Like newspapers runs on Advertisements, similarly bloggers get money through the advertisements. There are other dimensions of earning from blog, which we will discuss in later parts.
Sellers or Digital Marketing Agencies (on the behalf of sellers), use this platform and make product details reach till end customers and share their income with bloggers.
One of the most common ways youtubers make money, is through placing Ads on their channel.
They make videos and get regular followers or subscribers, and advertise sellers’ product which are seen by the viewers, (potential buyers) and instead earn money. (Like TV channels put Ads between the shows and earn money.
Sellers or Digital Marketing Agencies (on the behalf of sellers), use this platform and make product details reach till end customers and share their income with youtubers.
And ultimately the buyers. Do I need to explain this? They get benefited by receiving the products/services of their needs, in exchange of money.
There are 4 profiles to make money form digital marketing:
1. Sellers make money via selling products.
2. Digital Marketing People, whether a company or individual freelancers, provide services to the sellers, and help them in digital marketing, to increase their sales. Sellers pay Digital Marketing people for their service.
3. You tubers show advertisements to their viewers and earn money given by sellers.
4.Bloggers show advertisements to their readers and earn money given by sellers.