How to determine the most profitable digital marketing channels for your business

Many business owners choose to invest time and money into channels that are on-trend. Whilst this may work for a large number of businesses the reality is that there is no one-size-fits-all approach to selecting the most profitable channels.

The truth is that the right digital channels for your business are largely dependent on your industry. 

Here is how to choose the right digital marketing channels for your business.

Know the channels & their costs

This is vital, as many business owners entering the digital marketing game don’t take the time to research their options and get stooged as a result. You should take a couple of hours out of your schedule to research the different digital channels and determine which one/s are most suitable for your target demographic.

Whilst you research the different digital channels out there ensure you conduct further research on their costs. This will give you a good idea of how much you are willing and able to spend on a particular channel. 

Digital channels can differ greatly in cost, and you don’t want to find yourself spending thousands on a campaign that completely bypasses your target audience – this would be nothing but an outrageous waste of budget that could be seriously harmful to your business.

Finally, understanding the costs involved ensures that when you reach out to a digital agency or agencies you have a good idea of what to expect when discussing pricing. 

Determine your goals

Digital marketing contains a list of goals that pertain to reaching that all-important goal: profit. But you can’t just say you want to use digital marketing to make more profit, you have to break down this goal into smaller, achievable goals that in turn can yield greater sales. A reputable digital marketing agency can help you break down your most profitable channels by analysing data, and then suggesting new strategies.

For example, you may want to work towards creating a brand that is fun, edgy and appeals to younger generations. What do you do? Look towards social channels like Instagram, Facebook and TikTok to reach your target audience. This, coupled with solid Google Ads and SEO campaigns can help you build the image you want your audience to recognize. 

Know your audience

Carrying on from goal determination, you have to know exactly who your audience is and where they are likely to see your campaigns. There is no use making a product directed towards older generations and advertising on (say) TikTok – I’m a digital marketer in my mid-late 20s and I have no idea what TikTok is!

Know your audience and know where they’re at online – this will just about determine what channels you need to use to reach them. To do this, you can enlist the help of competitor research tools SEMRush, Sprout Social and more to determine which channels your audience uses, what kind of content they like and their interests/hobbies. 

It’s not as hard as it seems

Although for the largely uninitiated determining the right digital channels for your business can seem difficult, by following the above method you should be able to gain a great idea of where to start when choosing the right channels for your business.