Digital marketing connects brands with key audiences online, through channels like search, social media, email, and paid advertising.
In 2025, 27.2% of US business activity happened online, according to IBISWorld data. A Clutch survey of marketing professionals found that 60% of small businesses plan to increase their marketing and advertising budgets in 2026.
This guide covers how digital marketing works, the channels available, and how to build a successful strategy that grows your business.
What is digital marketing?
Digital marketing is the promotion of a brand, product, or service through paid and organic online campaigns. For an ecommerce business, marketing spans four connected areas:
- Reach. Attract shoppers who haven’t found the brand yet, through channels like search, social media, and paid advertising.
- Educate. Give shoppers the product information, reviews, and content they need to evaluate a purchase.
- Convert. Move shoppers from browsing to buying, through tactics like retargeting ads, email offers, and checkout optimization.
- Retain. Keep existing customers coming back, through email marketing, loyalty programs, and personalized offers.
Global digital advertising spending is closing in on $1 trillion in 2026, according to eMarketer’s May 2026 forecast.A strategic approach to digital marketing helps your brand to invest in key areas to make a big impact.
Digital marketing vs. traditional marketing
Digital marketing is carried out online or via digital channels. Traditional marketing uses offline channels like billboard ads and TV campaigns.
Some key differences between the two outlets is that a digital campaign can be adjusted while it’s running. Budgets, targeting, and creative can all change based on performance data. A billboard or print ad stays fixed once it’s published or installed.
Digital channels include free and low-cost tools, such as organic social media posts and email marketing, alongside paid options like Google ads and social ads.
Digital marketing for B2B
Business to business (B2B) digital marketing is the promotion of products or services to other businesses or organizations. B2B digital marketing tactics include email marketing, social media marketing, automated personalization, and influencer marketing.
Digital marketing for B2C
Business-to-consumer (B2C) digital marketing promotes a product or service to a consumer rather than another business. Ecommerce brands use tactics like social media marketing, paid advertising, and search engine optimization (SEO) to reach shoppers who are researching products.
Why is digital marketing important?
In the Shopify Survey of Store Owners (Q4 2025), 37% of respondents named marketing as their top Year 1 challenge.*
In an increasingly online age, digital marketing gives new store owners a direct, trackable way to reach shoppers across channels like social media, search, and email.
Reach and find customers
A 2025 Shopify survey found 36% of store owners said finding customers was tied with marketing for their top Year 1 challenge, according to the Shopify Survey of Store Owners (Q4 2025).* Digital marketing gives store owners more ways to reach potential customers.
Measure return on investment
Digital marketing performance is measured through key performance indicators (KPIs) like:
- Conversion rate. The percentage of visitors who complete a purchase.
- Click-through rate. The percentage of people who click an ad or link after seeing it.
- Customer acquisition cost. The average amount spent to gain one new customer.
- Revenue. The total sales generated from a campaign or channel.
Tracking these metrics shows which campaigns and channels perform best, and where to adjust spend.
Test channels before scaling
Testing digital marketing channels on a small budget shows which ones perform before committing significant spend. This might mean running a limited paid social campaign, publishing content on one platform, or trying a single email sequence, then comparing results across channels.
Channels that produce strong results, such as higher conversion rates or lower customer acquisition costs, are good candidates for increased investment. Channels that underperform can be adjusted or dropped before they take up a larger share of your business’s budget.
13 digital marketing channels
A digital marketing strategy can include multiple channels. The channels that fit a business depend on its target audience, budget, and goals.
These six channels make up the core pillars of digital marketing:
- Search engine optimization (SEO). Improving a website’s visibility in search results through content, site structure, and links.
- Pay-per-click (PPC)/Search engine marketing (SEM). Paid ads that appear in search engine results, charged per click.
- Social media marketing. Promoting products or content through organic posts and paid ads on social platforms.
- Content marketing. Creating articles, videos, and other content to inform or engage an audience.
- Email marketing. Sending targeted messages directly to a subscriber’s inbox.
- Affiliate marketing. Paying partners a commission for sales they generate through referral links.
The following channels expand on the six core pillars, and other digital marketing tactics available to ecommerce businesses:
1. Social media marketing
Social media marketing lets a brand engage with existing customers and reach new ones through platforms like TikTok, Facebook, Instagram, and niche communities like Houzz and Twitch.
Thirty-five percent of businesses cited building a social media presence as their second most common Year 1 growth strategy, according to the Shopify Survey of Store Owners (Q4 2025).*
Key social media platforms include:
- Meta (Facebook and Instagram). 3.5 billion daily active people across Meta’s family of apps, including Facebook, Instagram, Messenger, and WhatsApp, according to Meta’s Q1 2026 earnings.
- Pinterest. 631 million global monthly active users, according to Pinterest’s Q1 2026 results.
- Snapchat. 956 million global monthly active users and 483 million daily active users, according to Snap Inc.’s Q1 2026 results.
- TikTok. 1.99 billion active users as of October 2025, according to Statista.
- X. 557 million active users as of October 2025, according to Statista.
2. Messaging marketing
Messaging marketing targets customers directly through text messages or Facebook Messenger. Text messages and Messenger notifications reach shoppers instantly, which makes them a good option for time-sensitive updates, offers, and reminders.
Toilet paper brand Who Gives a Crap, for example, sends replenishment reminders to their customers via text message so they never run out.

3. Email marketing
Email marketing can include a mix of promotional and non-sales content. For example, newsletters with usage tips for your products, exclusive discounts for subscribers, early announcements, and access to sales and affiliate programs.

Email marketing software can build customer profiles and segment a subscriber list to create personalized campaigns. Shopify Messaging creates and sends email marketing campaigns directly through Shopify, with templates that support direct linking to products.
4. SEO
Search engine optimization (SEO) improves your website’s visibility in unpaid search results. Search engines rank pages using factors like keyword relevance, content quality, site structure, page speed, and backlinks from other websites.
Common SEO tactics include researching the keywords shoppers use to search for products, optimizing page titles and product descriptions around those keywords, and building a site structure that search engines can crawl easily.
Oral care brand Boka used this approach to grow organic traffic by 177% and organic revenue 51%. They used an SEO program that combined category page optimization, new category pages, and an ongoing content calendar.
5. Search engine marketing and pay-per-click
Key digital marketing strategies, search engine marketing (SEM) and pay-per-click (PPC) advertising both use paid ads billed per click. This is also known as the cost-per-click (CPC) model.
A brand bids on specific keywords so an ad appears when a shopper searches for related terms. PPC extends the same cost-per-click model to platforms like Facebook and Instagram, where ads target audiences based on shopper attributes rather than a specific search.
LoveByt, which sells cruelty- and chemical-free toothpaste, bid on the keyword “organic toothpaste,” for example. The result is that their ad appears at the top of search results for that term.

Running SEM or PPC campaigns involves setting a budget, choosing keywords or audience targeting, and creating ad visuals. Google Ads supports pay-per-click display ads and Shopping ads that target specific keywords and locations. Ad formats vary by platform, and some let shoppers buy directly through the ad without leaving the platform.

6. Native advertising
Native advertising is paid advertising styled to match the look and feel of its host platform, such as a sponsored social media post, a sponsored article, or a product recommendation widget.

The FTC’s endorsement guide calls for clear and conspicuous disclosure of paid content. This means using direct labels like “Ad,” “Sponsored,” or “Paid ad” placed where readers are likely to see them, rather than in fine print or behind a click.
7. Content marketing
A content marketing strategy is when businesses create or curate content, often through a blog. This can grow your brand audience through creating readership, and often doubles as SEO.
Google Search Central states there’s no preferred word count or heading count for search rankings. Google evaluates content on whether it provides original information, answers the searcher’s question completely, and leaves the reader satisfied, rather than on length or structure.
Skin care brand Beauty Pie, for example, has a brand blog that shares insights and answers questions to help shoppers make a purchase.

8. Affiliate marketing
Affiliate marketing lets consumers and influencers earn a commission for marketing and selling a company’s products. It’s often paired with influencer marketing, where the influencer earns a commission each time someone buys through their unique link.

A creator archetype guide can help identify influencers who fit your brand before setting up your affiliate program.
The FTC’s endorsement guide requires influencers and affiliates to clearly disclose their financial relationship with a brand. This means using direct language like “affiliate link” or “#ad” placed where a reader will see it, rather than buried in a bio or behind a More button.
This is general information, not legal advice; brands should consult legal counsel to confirm compliance for their specific affiliate program.
9. Marketing automation
Marketing automation uses technology to trigger automated actions within a digital marketing strategy. It can run on a single platform, or combine multiple tools through integrations. The Shopify App Store includes marketing automation apps that can be added to a Shopify store. Marketing automation campaigns can also be created directly from the Shopify admin.

Post-purchase automation is one example. This is when a brand sends personalized recommendations after a purchase, in order to nurture customer relationships and cross-sell other products. Campaign results can be checked and adjusted through the marketing analytics tool in the Shopify admin.
10. Remarketing
Remarketing, also called behavioral retargeting, is marketing to people who have already interacted with a brand.
For example, take a home goods brand that sells artist-designed mugs. They might remarket a new mug design to customers who purchased an earlier mug from a different artist, since those customers have already purchased a similar product.

11. Sponsored content
Sponsored content is a paid article, blog post, or social media post that a brand pays a publisher or creator to produce. It’s styled to match the venue’s surrounding editorial content.

The FTC’s endorsement guide requires clear disclosure of sponsored content, using direct labels like “Sponsored” or “Paid partnership” placed where a reader will see them, rather than buried in fine print or a caption’s final line. This is general information, not legal advice; brands should consult legal counsel to confirm compliance for their specific campaigns.
12. Influencer marketing
Influencer marketing is a form of digital marketing where your brand partners with relevant social media accounts to promote a brand or products to their audience. This approach is often paired with affiliate marketing through unique affiliate links for each influencer.
For example, beverage brand Olipop partners with influencers on Instagram to feature their latest flavors.
13. AI digital marketing
AI digital marketing is the use of artificial intelligence and automation within a digital marketing strategy. It includes automated, personalized workflows that deliver content to different audience segments. It also features generative AI tools that draft blog posts and social media captions, and data analysis to inform future campaigns.

The Small Business Administration’s (SBA) guidance on AI for small business notes that generative AI can help create ecommerce product descriptions and schedule social media content, and that no federal or state law currently requires businesses to disclose AI use, though the SBA notes it’s becoming an expected practice.
Who manages digital marketing?
Digital marketing can be handled by a business owner, an internal team, or an outside partner.
- Business owner. Handle your own digital marketing directly, without a dedicated hire.
- In-house team. One or more employees manage campaigns, content, and analytics internally.
- Freelancer. Works on a contract basis for specific projects, such as content creation or social media management.
- Digital marketing consultant. Advises on strategy and campaign direction without managing execution directly.
- Digital marketing agency. Manages campaign execution across one or more channels on your business’s behalf.
- Digital marketing services or tools. Software platforms that automate tasks like email campaigns, ad management, or analytics reporting.
How to create a digital marketing strategy
A digital marketing strategy sets the audience, messaging, and channels for a business’s marketing efforts. It guides which tactics to prioritize, and how to measure results.
1. Set goals and budget
A thoughtful digital marketing strategy starts with a goal. This might be a broad goal, like increasing online store sales by 30%, or a goal for one campaign—like growing an Instagram following to 10,000.
Pick one specific goal per campaign before choosing channels. This keeps every channel and content decision tied to something measurable.
In a 2025 Shopify survey, 31% of store owners with more than $1 million in revenue cited paid advertising as their most effective growth strategy, according to the Shopify Survey of Store Owners (Q4 2025).*
2. Identify your target audience
A target audience can be defined by demographics, such as age and location, or by shared characteristics like job role or shopping behavior. Buyer personas combine this information into profiles that can guide your brand messaging and channel selection for a campaign.
Shopify’s customer segments group existing customers by shared attributes, such as purchase history, location, or order frequency. These can be used alongside external research to build accurate personas.
Steps for building buyer personas:
- Check analytics.Google Analytics and Shopify sales metrics show who buys most from a store.
- Identify patterns. Look for shared characteristics among top customers, such as age range or job role.
- Use demographic and psychographic data. Look beyond age and location to interests and challenges.
- Create personas. Combine this information into a few personas, each with a name, key characteristics, and the marketing channels most likely to reach them.
3. Choose channels and resourcing
Different audiences communicate through different channels. Some engage primarily through social platforms like TikTok and Instagram, others through email or text message. Buyer personas indicate which platforms and message types fit your target audience.
Resourcing affects which channels a strategy can support. Handling channels directly means learning each platform’s tools and format requirements. Working with a freelancer, consultant, or agency shifts execution to someone with existing channel experience, at added cost.
Diversifying across a few channels, rather than relying on a single platform, can be a good approach for your business. This reduces the impact if one channel’s reach or performance changes.
4. Create a content and campaign plan
A content plan allows you to match digital marketing content formats to your brand’s upcoming campaigns. You can then build out a strategy based on the audiences and channels you’ve already identified. Here are some examples of campaign types, and how they might roll out on specific channels:
- Awareness campaigns. Instagram Stories and Reels, TikTok and YouTube videos, and social media ads can introduce a brand to new audiences.
- Retention campaigns. Welcome sequences and automated email marketing keep existing customers engaged after a first purchase.
- Consideration campaigns. SEO blog posts and downloadable content, such as ebooks and reports, give shoppers information while they compare options.
- Trust-building campaigns. Influencer and user-generated content shows a product in use through a source other than the brand itself, to build word of mouth.
Testing content formats against campaign performance data shows which formats to prioritize for a given campaign type.
5. Measure results and adjust
Reviewing results against the goals you set for each campaign shows whether a specific goal was met, rather than judging performance in general terms.
Relevant KPIs vary by goal: you might focus on conversion rate and revenue for a sales goal, follower growth and engagement rate for an awareness goal, and click-through rate for a traffic goal. Regularly checking social media analytics reports, conversion tracking, and engagement metrics keeps this data current.
Digital marketing examples
These campaigns show how different brands have applied specific digital marketing channels.
Dove: digital marketing campaign
Dove has used user-generated content, hashtag campaigns, and social videos across social platforms to raise awareness of body image issues alongside their products. This format shows how a campaign can center customer stories rather than product features.

Samsonite: search engine marketing
Samsonite moved its advertising into search engine marketing by researching what its end users searched for, then targeting those keywords and matching ad messaging to search results. This example shows how keyword research can shape both targeting and ad copy, not just placement.

Apple Shot on iPhone: social campaign
Apple built a digital marketing campaign around photos taken by iPhone users, then displayed the winning submissions on billboards and shared them on social media. The format shows how customer-generated content can substitute for produced brand imagery in a large-scale campaign.
Buoy: email marketing automation
Wellness brand Buoy uses automated email marketing to send discounts and exclusive deals to their best customers, including countdown timers on offers and prompts encouraging subscribers to share the brand with friends and family. This example shows how automation can combine time-limited offers with referral prompts in a single email flow.

Campus Protein: SMS marketing
Energy drink brand Campus Protein sends personalized abandoned cart text messages to bring shoppers back to the site. When a shopper replies, the brand’s AI chatbot responds with relevant product information, links, and discounts. This campaign shows how SMS and a chatbot can work together to handle a single abandoned-cart interaction end to end.

Start digital marketing with Shopify tools
Shopify includes built-in tools for audience targeting, email marketing, SEO, and paid social ads.
These tools connect campaign data across channels within the Shopify admin, so results from one channel can inform decisions on another.
* Based on a 2025 survey of 500 Shopify merchants conducted in English across Australia, Canada, the United Kingdom, Ireland, New Zealand, and the United States. Respondents were established merchants with two or more years on the platform. Results reflect the experiences of this specific sample and may not be representative of all merchants.
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Digital marketing FAQ
How does digital marketing work?
Digital marketing works by using channels like search, social media, email, and paid ads to reach shoppers, share information about a product, and guide customers toward a purchase. Use analytics tools to gather performance data, such as clicks, conversions, and revenue. This helps you understand which channels and messages are performing best, and where to adjust your efforts and spend.
What are the main types of digital marketing?
The main types of digital marketing are:
- Search engine optimization (SEO)
- Search engine marketing (SEM)
- Pay-per-click (PPC) advertising
- Social media marketing
- Content marketing
- Email marketing
- Affiliate marketing
Other types include messaging marketing, native advertising, sponsored content, remarketing, marketing automation, and AI digital marketing.
How do you create a digital marketing strategy?
A digital marketing strategy starts with a goal for each campaign. You can then identify your target audience using customer data and personas.
From there, choose channels and resourcing, whether in-house, freelance, or agency. Build a content plan matched to each campaign, and measure your results against the original goal using KPIs like conversion rate and revenue.
What are the common challenges of digital marketing?
Common challenges include:
- Generating qualified leads
- Measuring return on investment (ROI)
- Creating engaging content
- Keeping up with new tools and trends
In a 2025 Shopify survey, 37% of store owners cited marketing as their top Year 1 challenge, and 36% cited finding customers, according to the Shopify Survey of Store Owners (Q4 2025).*
How is AI changing the digital marketing landscape?
AI automates tasks like ad targeting, content drafting, and campaign reporting that once required manual work. The SBA’s guidance on AI for small business notes that AI tools can help generate ecommerce product descriptions and schedule social media content. It recommends disclosing AI use, even though no federal or state law currently requires it.












