A study on the convergence of digital marketing strategy and social media Essay


With the motivation of Start-up India by Modi there has been a significant increase in the number of Start-up companies in the nation. Debjani Ghosh president of NASSCOM said “India is becoming a start-up hub. Opportunity for growth is enormous, which we had never seen in our lifetime",” and as per NASSCOM, Start-up in India saw a 108% growth in total funding from USD 2 billion in 2017 to USD 4.2 billion in 2018. There are various factors that lead to the growth of Start-ups in India in which major share is taken by their marketing strategies to attract the consumers and increase the ROI of Start-up.

Digital marketing is the use of the internet and digital devices, search engines, display advertising and other digital media to reach the audience. Digital marketing involves Short Message Service (SMS), Simple Notation Services (SNS), Search Engine Optimization (SEO) and other online ads to promote product and services. Use of digital marketing has increased the company visibility on the internet. Also, it helps to study the customer behaviour with the website and based on that analysis it provides the customer desired service to the consumer. Social media marketing is one of the aspects of digital marketing which also plays an important role in increasing the company profit and revenue exponentially.

There are more than 2.46 active users of social media network out of which 2 billion people are frequently online in the network. Earlier people were attracted to use a product or service by seeing the advertisement that aired on television. Similarly, due to such a large increase in the people connecting to social media, there is a creation of the platform for developing of businesses through social media marketing and digital marketing. Also, attracting consumers through social media marketing which helps to reduce the marketing cost. Thus, Start-up companies find it as a platform to reduce the marketing cost and at the same time increase their sales and revenue.

Thus, conclusion can be made that digital marketing strategy and social media marketing strategy plays a vital role for start up’s and should be consider in marketing strategies to reduce marketing cost as well as increase sales and revenue exponentially. Hence, it creates awareness about the business and in the growth of start-ups.

Case of Zomato for social media marketing & Digital marketing strategy

1. Digital marketing means creating awareness as well as promoting brand or product or services online by using various digital channels. Digital marketing consists of Internet marketing i.e. SEM includes Pay per click etc. And non – internet marketing is through Television, Radio etc. whereas social media marketing is promotion of a business brand by using social media platforms like Facebook, Twitter, Instagram etc.

2. Digital marketing is more affordable than the traditional marketing but it is costlier than the social media marketing. Social media is a platform openly available to everyone to promote their business for free of cost. The other advantage of digital marketing is to spend as per the click or visit or impression. It’s a cost-effective tool for the business to grow in the market.

3. Further can be explained through a case study of Zomato: Zomato is an application that connects the foodies with various restaurants. The start-up has been a great success within a short span. While studying the marketing strategy of the company, found that Zomato has extensively invested a lot over SEM, SEO and they have worked a lot to improve its UI and make it more user interactive. On the other side, they have also invested in TV ads to spread globally.

Zomato used various social media platform to engage with their customers Like Facebook, Twitter, Blog, and Pinterest.

4. Nowadays every company, having an online presence demands their application developer to add a Search engine optimization to their webpage but not every company desires to have a social presence.

5. To sum up, Social media marketing is a part of digital marketing. Through the various techniques the marketer can track the impressions, through several visits or clicks etc.

Major Components of Digital Marketing:

Digital marketing incorporates many marketing activities which provide unlimited strategies that business gather from the websites. As digital marketing is vast, it compresses of major components and this component give maximum benefit if business utilise properly.

 Search Engine Optimization (SEO) – SEO is a powerful way for optimization of websites, as search engines will understand it better and will provide higher rankings. In SEO, keywords and content as well as way to promote your website or blogs, plays an important role in ranking higher in search results.

And good SEO approach can lead to more traffics on website or online store which help to create more customer and sales for the business. Also, it helps to fulfil your business objectives.

 Search Engine Marketing (SEM) - Search Engine Marketing is basically to market your business through paid advertisement that appears on the search engine page results. It creates opportunity for business by motivating consumers to buy the product through Ad. Also, it’s a cost-effective technique where they use a tool like pay per click etc. Keyword are the main part of Search Engine Marketing.

 Email Marketing – Email marketing helps to drive sales, keep customer interested and to create brand awareness. It’s a cost effective and time saving tool help digital marketing keep moving. Email marketing is used by the business as a 1st step to create awareness and opportunity for the business.

 Social Media Marketing – Social media is something which is used by every individual and it’s a platform for the business to build a relationship with the followers as well as to launch a product. Social media is must for the business to have a strong marketing strategy. In this you only need to understand which media is useful for your business.

Major difference between Digital Marketing and Social Media Marketing:

Sr. No Digital Marketing Social Media Marketing

1. Digital marketing consists of internet based as well as non-internet based which helps to promote and attract customers through digital platforms. Social media marketing consists of various social sites as well as blog and forums to create brand awareness and for promoting a product.

2. Non-Internet digital marketing is through Television, Radio, Bill boards and through SMS whereas Internet based digital marketing includes social media, content marketing, email marketing, banners ads, SEO etc. Social media are internet based that includes sites like Facebook, Instagram, Twitter, LinkedIn, YouTube etc.

3. To reach people digital marketing not only use internet based but also non-internet channel. Whereas social media has limited reach to customer as it performs only through internet

4. Digital marketing use all the modern marketing techniques and cost-effective channels. Social media consists of two ways i.e. Paid services and Non-Paid services.

5. Digital marketing is one the slowest way of advertising then the social media. Social media wins as it’s one of the fastest way of advertising due to active response from the viewers.

6. Digital Marketing is the future of marketing and will raise day by day. Social media is a new way of connecting people and it’s a new way for promoting business. Also, social media marketing is the part of digital marketing

Table No. 1

Comprehensive Online marketing cost:

 The three largest online marketing platforms are Google AdWords, Instagram, and Facebook Ad. Following are the online marketing cost.

 The average cost of an advertisement on Google Ads (AdWords) is $2.32 per click on the search network. The average cost per click of an ad on the Display Network is under $0.58.

 The average cost per action (CPA) in a Google advertising search campaign is $59.18.

 The most expensive keywords in Google advertising and Bing Ads cost $50 or more per click. These are generally highly competitive keywords in industries that have high customer lifetime values, like law and insurance.

 The average small business using Google advertising spends between $9",000 and $10",000 per month on their online advertising campaigns. That's $100",000 to $120",000 per year.

 The average cost per click of an online Facebook ad is $1.72. The average cost per action on Facebook Ads is $18.68.

 The typical CPM on Facebook Ads is around $10.

 The typical CPM for an Instagram ad is closer to $5, but Instagram ad costs are rising as the platforms gains in popularity.

Review of Literature:

Rajeev Pandey (2016): In Rajeev Pandey article on 17th Nov, 2016, states that key pillars can turn start-ups into sustainable company. The article says that most of the company focus only on raising funds and marketing, ignoring product development which leads to high traffic and do to which website goes down. And to build their start up new founders and co-founders need to understand the framework. This article states that we need to include product, capital and marketing all three to sustain. If only product development is ignored, then it may lead to site crash and the same mistake was done by the Flipkart when they first launched the Big Billion Day Campaign. And if marketing is ignored then you might have a great product with funding but will end up with no users (Google+). If capital is ignored, then you might have good product with a lot of users but no way to make money (Facebook faced it for few years).

So, it is crucial to understand the importance of each pillars and focus on building the start up for the long tug. It states that, the paid service should be less for the initial stage as customers are least bother to know from where they came to know about your product or services. Even it doesn’t matter how you reach to them through email marketing or paid services but they will try to use it, if they want too. So, start-up companies should use less paid services till they reach to 100 customers.

Syed Sirajuddin (2015) -A blog by Syed Sirajuddin (2015) for role of digital marketing in growth of Start-up. He talks about how digital marketing is important for the Start-ups. Many start-up company think only digital marketing is important but that fact is that it should be a part of your business plan from the beginning. He states that many start-up company fails due to poor marketing even though the product is good. In blog Syed says, the power of digital marketing is nothing but the future of marketing. A few start-ups like Bewakoof.com, apparels and mobile cover seller has become India’s top most socially engaged brand with 1.5 Million fan page on Facebook. And now they have started selling through instant messaging i.e. WhatsApp and they claim that 15% of his sale is from WhatsApp itself. He says all company cannot work in a same manner with same strategy. And for growth and to sustain in competitive market, is possible only if winning marketing strategy is generated.

However, all the start-up company need to focus on effectiveness of digital marketing and social media marketing by executing different marketing strategies which work best for the business. And should always accept the changes as it’s an on growing.

Jigar Zatakia (2017) – An article on Digital Marketing for Start-up by CEO of First Economy Pvt Ltd. He talks about how difficult is running your own start-up. For start-up entrepreneurs, it’s must to plan and then execute. Jigar Zatakia says that many entrepreneurs ignore digital marketing due to high cost and feel it’s a liability. But digital marketing is a back bone for the start-up entrepreneurs to sustain in the competitive market. If digital marketing is done correctly, then it can create a huge impact for a long term. Your content plays a major role for start-up.

Garvit Bafna – An article by Garvit Bafna on 7 Must – Have Online Marketing tools for Start-up. As per the article she talks about start-up, face a greater challenge to be successful in the long run. An ease availability of tools and resources it leads to success of Start-up. Here is an internet who plays a major role for start-up. As it provides an unlimited number of the resources as well as tools. She says, it’s a cost-effective way for establishing brands to target the audience as well as to market their products or services. Also, digital marketing strategy is must for the start-up’s needs an implementation for more bang of their buck. It helps to implement, analyse, calibrate, monitor and evaluate a campaign. She explains how these tools can help a start-up to run a ship and merrily sail into the sunset.

Objectives of the Study:

 To study the existing variation between digital marketing and Social media marketing.

 To determine the convergence between the digital marketing and the social media marketing with reference to a start-up in India.

 To understand the challenges, face by start-up for sustaining.

 To establish a converged strategy to build the brand image.

 To find out the cost effectiveness marketing strategy for Start-up’s.

Research Methodology:

A thorough literature survey had been done to find out the factors for marketing strategy of start-up. The study will be based on survey method where we will be collecting data from the start-ups, which will be termed as primary data. A study is descriptive in nature. Secondary sources will be taken from the articles published online and from few research papers. Both qualitative and quantitative approach would be considered for the study.

Sampling Technique:

Non – probability sampling technique which is also known as purposive sampling method.

Sample Size:

This will be divided into two parts i.e. experienced and inexperienced Businesses. Based on the responses exact sample size was 100. Responses received 77 within the nation.

The data collected for the period “November, 2018 – December, 2018”.


Chi-square and T- Test is used to test the hypothesis.

Overview of Cost Effectiveness between Social media marketing and Digital Marketing:

Digital marketing and Social media marketing paid and unpaid services are used by most of the Start-up’s but we need to understand the effectiveness of cost. For any business, digital marketing has helped to lower the marketing cost but also important to understand the money spent on marketing for generating new lead to generate revenue. The cost effectiveness analysis will help you to understand your reach as well as how effectively and wisely you spent.

The digital marketing is must not only for the growth of start-up but also for the survival. Like how OLA, UBER, FLIPKART etc., have flourished through digital marketing. The mode of payment for digital marketing helps in lowering the marketing cost.

For example, cost for running a ten seconds’ advertisement on Television goes around more than 3 lakhs whereas using social media marketing platform like Facebook who offer host ad’s in hundred.

Further can be determined through various formulas which help to calculate the effectiveness are:

Table No: 2

For Examples:

1. CPC – CPC means Cost per click is one of the most popular model in online advertising. The company will pay as per the clicks as they are concerned with the clicks. E.g.: If a campaign as a banner at CPC of Rs 120 and the number of clicks the ad has got is 1000, calculate what advertiser should pay.

Formula: CPC = Cost of an advertiser / number of clicks.

Cost of advertiser: CPC * No. of Clicks.

Thus, Cost to an advertiser = 120*1000 = Rs 120000/-

So, Rs 120000 need to be paid by the advertiser.

2. eCPC - eCPC is known as Profitable per click. To calculate the effectiveness of the online campaigns is used by the internet marketers. E.g. If you want to calculate for single Ad and if money spent is like Rs.10",00",000 and clicks generated are 10",000 with actual CPC set Rs 180

Formula: eCPC = Total spent / Clicks

Net Profit = CPC – eCPC

Thus, eCPC = (10",00",000/10",000) = 100

So, Net profit = (180-100) = Rs 80

Rs. 80 is the profit per click.

3. CTR – CTR means Click-through rate. The effectiveness of an advertisement is measured through CTR. E.g. If a campaign Ad has served 10",000 impressions and generated 100 clicks. Calculate CTR.

Formula: (Number of clicks / Number of impressions) * 100

So, CTR = (100/1000) * 100 = 1%

Therefore, it means there is one click on each and every 100 impressions.

4. CPV – This is commonly used by various companies. CPV is known as Cost per visit. E.g. If the total cost is Rs. 1000/- and the visit increased from 50 – 250, visit is equal to 200.

Formula: Total cost of Campaign / Number of total visit after the campaign started.

So, CPV = 1000/200 = Rs.5/- Each visit cost.

5. Conversion Rate – CR is a simple formula.

Formula: (No. of conversion / Impressions) * 100

6. Return on Investment – Return on Investment (ROI) is an important metrics. It cannot be miscalculated. It helps to understand how much return a business is getting on a specific ad campaign. Also, the percentage figure represents how a campaign is performing.

Formula: [(Revenue – Cost) / Investment cost] * 100 (For %)

So, from the above metrics we can conclude that digital marketing helps to save the marketing cost. In other words, its cost effectiveness. Every business has different goals but also they require a different marketing methods or varying budgets.

Data Findings and Interpretation:

Knowing the respondents

Figure 1

Figure 2

Knowing the Business

From the pie-chart 71% have done market research and remaining 29% have not done market research before starting a business. Market research helps to strategies as per the market and consumer needs & wants.

Figure 3

This chart indicates that 62% respondents brand and advertise themselves whereas 38% of them have not done brand promotion. It helps to understand the importance of advertisement for the business.

Figure 4

Figure 5

From the above graph, we can interpret that the major number (38) of respondents belongs to those companies which perform direct sales whereas out of 18 responses 9 responses are for IT and remaining 9 from subscription. Also, few belongs to service sector as well as marketing sector.

Figure 6

24 respondents are Commercial business whereas 20 are Ecommerce which means major start-ups belongs to above commercial and ecommerce. And 13 respondents are from industrial sector and few from retail and service sector.

Figure 7

78% respondents use social media marketing and digital marketing platform to market as it helps to grow in the market whereas 22% respondents feel that this platform are not required to market their product or services. This indicates the importance of social media and digital marketing for the business to grow.

Figure 8

From the above graph 57 respondents use social media marketing to promote your business whereas 10 respondents put up on multimedia and 18 respondents prefer press releases. Also 22 prefer local listing services and SEO. The analysis shows the business strategy to expand the business in the market. Out of the above the social media is the most powerful and the fastest tool which is considered by most of the business when they strategies.

Understanding the strategy of Social media marketing and digital marketing for Growth and sustainability based on the responses.

Figure 9

27 respondents strongly agree social media marketing and digital marketing is must for the growth and sustain of business in the market whereas 7 strongly disagree to it. 16 respondents cannot conclude about it. From the above graph, we can conclude that for marketing strategy social media and digital marketing must consider as per the trend in the market.

Figure 10

58% respondents do not prefer using social media marketing and digital marketing for their business due to lack of awareness and feel that its time-consuming process whereas 17% feel that privacy and safety of their data becomes compromised.

83% respondents said yes social media marketing helps at the start of business to create more brand awareness about the product and services as well as business, whereas 17% disagreed on the same.

Figure 11

70% use both the services i.e. paid and unpaid whereas 17% uses only unpaid services for using social media marketing and digital marketing. The business should consider paid services as it helps to reach to a target audience. Also, digital marketing is the cost-effective tool which can be used to advertise.

Figure 12

Figure 13

Single start-up can use more than one marketing tool to promote their business and which also helps in internal marketing. This can be concluded from the above bar-chart. There is various tool used in the market to perform more effectively and efficiently.


Figure 14

Comparing various social media marketing at the point of 5, highest response is given to Google as a platform to grow business whereas 2nd highest is Facebook. And comparing at point 1 Yahoo is the lowest among the other sites. Also, we conclude that the highly useable platform are Google, Facebook and Instagram followed by YouTube and LinkedIn. It also conclude that while strategizing which social media would be more powerful.

Figure 15

Social media marketing has major foot in helping business to target audience and thus increasing the revenue and it reduces the marketing cost. Hence, promoting and targeting the right audience helps in the growth and sustainability of Start-up.

Figure 16

50% respondents of the business feel that social media marketing is must for the growth and sustainability of the business whereas 2% feel all the above are important factor. And 28% feel that Search engine marketing is important for the growth and Sustainability whereas 12% feel content marketing.

Figure 17

78% feel that the digital marketing helps in increasing business revenue whereas 22% feel that it’s not helpful due to improper use of digital marketing.

Figure 18

45% respondents feel more than 20% growth in their business due to social media marketing and digital marketing whereas 8% respondents feel that there is less growth which is less than 10%. From the above figure, we can conclude that digital marketing helps the business to grow and sustain in the market.

Testing of Hypothesis using the data

Chi-Square Test

In order, to analysis the variation between the digital marketing strategy and social media marketing strategy for start-up, chi-square test was used.

Null Hypothesis: There is a no variation between the choice of parameter of importance and the choice of social media marketing for Start-up.

Alternate Hypothesis: There is a variation between the choice of parameter of importance and the choice of social media marketing for Start-up.

Table 1:

Observed Data

Parameter of Importance Media Platform

Google Yahoo Facebook Instagram YouTube Total

Lead generation 53 19 40 44 38 194

Helps to reduce the marketing cost 48 22 34 32 32 168

Increase in sales 42 22 56 23 28 171

Right Content 39 23 42 39 36 179

Right Feedback 44 9 48 41 31 173

Total 226 95 220 179 165 885

Expected Data

Parameter of Importance Media Platform

Google Yahoo Facebook Instagram YouTube Total

Lead generation 50 21 48 39 36 194

Helps to reduce the marketing cost 43 18 42 34 31 168

Increase in sales 44 18 43 35 32 171

Right Content 46 19 44 36 33 179

Right Feedback 44 19 43 35 32 173

Total 226 95 220 179 165 885

Alpha Value – 0.05

P Value – 0.028


Since the Chi-square Test P-Value for the variable is 0.028 which is less than the Alpha Value 0.05. Hence, we reject the null hypothesis.

Conclusion: There is a variation between the choice of parameter of importance and the choice of social media marketing for Start-up.

T – Test

T test was applied to understand the significant difference between the tools of digital marketing and social media marketing.

Null Hypothesis: There is a significant difference in the rating provided to social media marketing and digital marketing.

Alternate Hypothesis: There is no significant difference in the rating provided to social media marketing and digital marketing.

Table 2:

t-Test: Two-Sample Assuming Equal Variances

Case1 Case2

Mean 3.830952381 3.711904762

Variance 0.571768707 0.652017756

Observations 60 60

Pooled Variance 0.611893232

Hypothesized Mean Difference 0

df 118

t Stat 0.833572765

P(T<=t) one-tail 0.203102971

t Critical one-tail 1.657869522

P(T<=t) two-tail 0.406205942

t Critical two-tail 1.980272249

Alpha - 0.05

P Value - 0.406205942


As the P-Value is more than Alpha Value, we will accept the null hypothesis.


There is a significant difference in the rating provided to social media marketing and digital marketing.

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