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The Effect of Digital Marketing on Purchasing Power

by | Updated on: Aug 7, 2023 | Digital Marketing 101 | 0 comments

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impact of digital marketing on consumer behaviour and purchasing power

We will learn about the effect of digital marketing on consumer behaviour, effect of digital marketing on sales & effect of digital marketing on purchasing power.

Impact of digital marketing in consumer behaviour

In recent years, digital marketing has become an increasingly important tool for businesses to reach their target consumers. As more and more people spend time online, businesses have realized that they need to adapt their marketing strategies to include the digital sphere in order to remain relevant and reach as many potential customers as possible.

But what exactly is digital marketing, and how does it impact consumer behaviour? Today, we’ll be taking a closer look at both of these questions to help you better understand the role of digital marketing in today’s business landscape.

How digital marketing has changed the way we think about advertising

Digital marketing has revolutionized how we approach advertising, providing marketers with an entirely new set of tools to reach their audience. With the evolution of social media, companies now have a plethora of different approaches and channels for engaging potential customers as never before imagined.

Digital marketing also enables businesses to target specific audiences based on geographical location, age range, or interests – creating a personal and authentic connection to learning about products and services. Moreover, digital ads can be personalized to each individual customer’s profiles – making them more effective and impactful than outdated traditional marketing efforts.

Thanks to the power of data-driven algorithms, businesses can now effectively measure their online advertising success in real-time. There’s no doubt that digital marketing has transformed the way we see advertising for better or for worse today.

The different types of digital marketing and how they work together

Digital marketing is a broad term encompassing a range of online marketing strategies and tactics. These can include; search engine optimization (SEO) which helps increase the visibility of a website in organic search engine results pages, content marketing to attract and engage potential customers by creating valuable content, social media marketing to acquire a larger customer base through networking on platforms such as Facebook, Instagram, Snapchat and Twitter and email marketing using newsletters to bring people back to your website.

Each type of digital marketing works together to create an effective overall digital marketing strategy. For example, SEO used in conjunction with good content attracts more visitors who might become loyal customers after engaging with your social media channels or receiving personalised emails from your business.

How digital marketing can be used to influence consumer behaviour

Digital marketing has changed the way businesses interact with consumers. It allows them to reach an even wider range of customers, giving them a platform to showcase their products and services in an effective yet engaging way. Through tactics such as segmentation, personalization, and marketing automation, companies can customize content according to consumer preferences and deliver it quickly at the right time. Moreover, platforms like social media offer valuable insights into consumer behaviour which can be used to get ahead of customer needs.

By staying up-to-date with industry trends and analyzing customer data, businesses can better target potential buyers with appealing ads while emphasizing the value they will get out of investing in their products or services. In sum, digital marketing has revolutionized the way companies influence consumer behaviour by providing more targeted approaches and more personalized strategies.

Related reading: Influencer marketing strategies

The benefits of digital marketing for businesses and consumers alike

In modern times, digital marketing is a powerful and essential tool for businesses. For businesses, having an effective digital marketing plan facilitates direct reach of their target consumers and audiences. As a result, businesses are able to keep customers better informed about the conditions of their products and services, as well as how their offerings match the demands of the current market.

On the other hand, digital marketing also enables consumers to compare different products and services from different companies more easily and quickly. This kind of convenience helps to drive shoppers towards products that can cater to their needs best while helping them save time in searching for the perfect items they need. All in all, there is no doubt that digital marketing plays an important role in today’s business landscape by providing both businesses and consumers with smart solutions to fulfil their objectives efficiently and effectively.

The challenges faced by digital marketers today

Digital marketing is a constantly evolving field, and succeeding in it today requires both knowledge of the latest trends as well as an aptitude for quick adaptation. Digital marketers face a variety of difficult challenges; from needing to understand how different platforms work together, to keeping up with ever-changing industry regulations.

Additionally, digital marketers must know how to craft content that speaks to their target demographic in a way that cuts through the noise of its competitors. As expected, the demands on digital marketers are high and require multi-faceted skill sets in order to remain successful.

Related post: The top challenges faced by digital marketers

Key Pointers

The effect of digital marketing on purchasing power can be summarized in the following pointers:

  1. Increased Access: Digital marketing provides greater access to products and services for consumers worldwide, breaking down geographical barriers and expanding choices. It allows businesses to reach global audiences and consumers to explore a wide range of options.
  2. Informed Decision-Making: Digital marketing provides consumers with easy access to information, reviews, and comparisons, empowering them to make more informed purchasing decisions. They can research products, read customer reviews, and compare prices, enabling them to choose the best value for their money.
  3. Personalization and Targeting: Digital marketing enables businesses to tailor their marketing messages, offers, and recommendations based on consumer preferences and behavior. This personalization helps consumers discover relevant products and services that align with their needs and interests, enhancing their purchasing power.
  4. Pricing Transparency: Online platforms and tools facilitate price comparison and transparency, allowing consumers to find the best deals and discounts. This transparency encourages businesses to compete on price, which can lead to lower prices and cost savings for consumers.
  5. Convenience and Accessibility: Digital marketing offers convenience and accessibility through online shopping, mobile apps, and e-commerce platforms. Consumers can browse, order, and receive products or services at their convenience, saving time and effort compared to traditional brick-and-mortar shopping.
  6. Targeted Promotions and Discounts: Digital marketing allows businesses to target specific consumer segments with personalized promotions and discounts. This targeted approach can provide consumers with exclusive offers and deals tailored to their preferences, maximizing their purchasing power.
  7. Social Proof and Influencer Marketing: Digital marketing leverages social proof and influencer marketing strategies, where consumers are influenced by recommendations and endorsements from trusted individuals or their social networks. This can impact purchasing decisions and help consumers make confident choices.
  8. Customer Engagement and Support: Digital marketing enables businesses to engage with customers through various channels like social media, chatbots, and email marketing. This improves customer support and after-sales service, enhancing the overall purchasing experience.
  9. Time and Cost Savings: Digital marketing can lead to cost savings for businesses, which may translate into competitive pricing and discounts for consumers. Additionally, it saves consumers time by eliminating the need for physical store visits, reducing travel costs, and offering faster delivery options.
  10. Loyalty Programs and Retention: Digital marketing facilitates customer loyalty programs, reward systems, and personalized recommendations based on previous purchases. These incentives enhance the purchasing power of consumers by providing additional value and benefits.

It’s important to note that the impact of digital marketing on purchasing power can vary among individuals and industries. However, overall, digital marketing has significantly influenced how consumers research, evaluate, and make purchasing decisions, giving them more control and options in the marketplace.

In a nutshell

As anyone with a basic knowledge of economics would know, purchases can be essential or luxury. What you can’t do without, like food grains or medicines, are essential purchases. Items that you can do without to an extent, like branded clothes or high-end smartphones, are labelled as luxury purchases.

We are not considering the purchase of essential items in this discussion because you will have to buy them, no matter what. So, here we will be scrutinizing the effect of digital marketing on the purchasing power in terms of luxury items.

In the days before the advent of digital marketing, people had to visit shops and check out products and services. These items did not come visiting you on their own, like they do nowadays! This is what digital marketing has done to how people make purchases. They have bought a whole range of products and services to your fingertips. As a result, you are finding it more difficult to resist the temptation to make a purchase!

Earlier, you could simply avoid heading out to shops if wanted to place a curb on your luxury purchases. In the digital marketing era, that’s not possible. Once you search for a product or service online, it’s like writing it in large letters on the external walls of your house! The moment you search for something and probably go to bed, postponing the purchase to another day, you trigger something online. The next morning, your email, your browser tabs and even your searches have ad prompts to tempt you into buying what you had searched for the previous night!

You see, now, how difficult it is for a consumer to resist the desire to make a purchase, even if that means digging deep into their pockets?

This is what brands and businesses need to leverage through digital marketing. The relentless data capture and analyses, sometimes through automated machines and algorithms, make sure that you will know the potential customers of a particular product or service. All you need to do is customize a marketing message for these leads and clinch the sale. Customers will be swayed into buying because they had the dormant desire to buy in their minds anyway. Even for those who are not yet aware of such a desire to purchase something, clever marketing pitches will evoke that itch to buy it.

Due to the combined effect of smart online marketing and social media recommendations, peer reviews and the like, the purchasing power of the average netizens has shot up for sure. Now it’s on the brand to figure out how to tap into this new-found purchasing ability.    


As we have seen, digital marketing has changed the way we think about advertising and how companies reach their target audiences. It is an important tool for businesses to use in order to remain competitive, but it also brings with it some challenges. As the world of digital marketing continues to evolve, so too must the strategies employed by businesses and marketers.

Only by keeping up with the latest trends and technologies will businesses be able to continue to reach their customers effectively. Have you embraced digital marketing in your business? What are the benefits you have found? Are there any challenges you have faced? Share your thoughts and experiences in the comments below.

Author:- Debajyoti Banerjee is the Founder, Director & CEO of Seven Boats - A leading digital marketing agency & digital marketing training institute in India since 2011. He is a TEDx Speaker, Google & LinkedIn Certified Digital Marketer & Trainer, Brand Strategist, Consultant & Entrepreneur. B. Tech in computer engineering & post graduate diploma in Marketing, Debajyoti has 18+ years of domain experience and successful track records in digital marketing services & digital marketing training with 500+ clients & 100K+ students in 165+ countries. He has been invited & felicitated by 25+ Top B Schools & universities including London Business School, AICTE ATAL FDP, UGC-HRDC, IIM Shillong, IIM ROHTAK, IIT KGP, IIT Guwahati, Calcutta University, Ranchi University, St. Xavier’s, Brainware, Techno India, JIS Group, Jaypee Group, Shikshayatan Foundation, IIEST Shibpur, Bhavan’s, ICFAI Business School, GITAM Deemed University, Swami Vivekananda Group of Institutions & many more. He has been awarded with more than 20 national awards and he has received notable media coverage. Learn more



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