Digital Marketing is the method of running marketing and advertisement campaigns by employing online, internet, and digital devices like smartphones, computers, and laptops. It transformed the way businesses and companies are employing the latest technology. Today, we’ll discuss the PESTLE analysis of Digital Marketing; it focuses on external environmental factors like; political, economic, social, technological, legal, and environmental factors.
Political Factors Impacting Digital Marketing
Some of the main political factors in the Digital Marketing PESTLE analysis are as follows;
I-Trade Policy
Digital Marketing Firms need to keep in mind the trade policy of different while launching marketing campaigns for clients. Various political factors impact the trade policies of different countries. In case of the conflicting political environment with the client country, they would impose restrictions and it becomes highly difficult for them to smoothly perform their operations.
II-Government Regulations
The government regulations for Digital Marketing Firms are different in various countries. Businesses, companies, and marketers can’t simply advertise whatever they like. The advertisement of some products is not allowed in some countries; digital marketers should keep in mind the government regulations of different countries while running marketing campaigns.
III-Political Environment
A stable political environment plays a crucial role in the growth of businesses and companies. Digital Marketing Firms should become aware of the political environment of the country before launching their campaigns there. People won’t show interest in the advertisement in the middle of conflict and political turmoil.
Economical Factors Affecting Digital Marketing
Some of the main economic factors in the Digital Marketing PESTLE analysis are as follows;
I-Economic Downturn
The global economy has been going through an economic recession and downturn for the past few years. It has decreased the revenue and income of various businesses and companies along with millions of individuals. When people and brands have limited budgets and capital income, they would reduce their spending on marketing and advertisement.
II-Currency Exchange Rate
Digital Marketing Firms are operating their business in various countries across the globe. The currency exchange rate market is highly volatile and it keeps on changing its price and value regularly and daily. For instance, a small change in currency exchange would increase the cost and expenses; and decrease the company’s sales and revenue.
III-Consumer Spending Pattern
The consumer spending pattern in the economy is highly important to Digital Marketing Firms. For instance, if the consumer spending pattern is low in a particular country, the marketing and advertisement campaigns won’t yield the desired results.
Social Factors Impacting Digital Marketing
Some of the main social factors in the Digital Marketing PESTEL analysis are as follows;
I- Online Shopping Trends
The online shopping trends and the sale of e-commerce platforms have been increasing a lot in recent years. It presents a great opportunity for Digital Marketing Firms to offer marketing services to different types of businesses and companies. It would help them to increase their sale of services by dealing with various types of clients.
II- Cultural Relevance
Digital Marketing Firms should keep in mind the cultural differences of various countries. For instance, the promotion of some products like pork meat, exposure of women, and alcoholic beverages is banned in Muslim countries. Marketers need to pay heed to cultural relevance in terms of what is acceptable and what is not.
III- Different Holiday Seasons
Digital Marketing Firms should be aware of various holiday seasons in different countries. For instance, the timing of Chinese New Year celebrations, Holi festivals in India, Eid in Muslim countries, and the Christmas season is different. It allows them to prepare in advance to effectively deal with the client while running the marketing campaigns for them.
Technological Factors Affecting Digital Marketing
Some of the main technological factors in the Digital Marketing PESTEL analysis are as follows;
I- Advanced Technology
Digital Marketing Firms employ the latest and most advanced technological tools and applications like AI, ML, and data analytical technology. It allows them to efficiently process a vast amount of data in a short time, make effective decisions, and timely deliver results. However, advanced technological tools and equipment would help them serve their clients better.
II- Multiple Strategies
Digital Marketing Firms should implement different types of strategic approaches while dealing with different types of clients. For instance, the tools and strategic approach for running the advertisement campaign for travel agencies, food restaurants, and other businesses would be different.
Legal Factors Impacting Digital Marketing
Some of the main legal factors in the Digital Marketing PESTEL analysis are as follows;
Regulatory Compliance
Digital Marketing Firms should comply with the legal and regulatory requirements of different countries. It comprises complying with trade policy, government regulations, cultural relevance, ethical norms and policies, and other legal requirements. Compliance with regulatory requirements would help the company to smoothly perform its operations and serve clients.
Environmental Factors Affecting Digital Marketing
Some of the main environmental factors in the Digital Marketing PESTEL analysis are as follows;
Environmental Sustainability
Digital Marketing Firms consume a significant amount of energy to keep their system running. They should invest in the development of employing renewable sources of energy to decrease carbon emissions. Environmental sustainability initiatives would help them to earn the trust and confidence of eco-friendly customers.
Conclusion: Digital Marketing PESTLE Analysis |PESTEL Analysis of Digital Marketing |External Environmental Analysis of Digital Marketing | Strategic Analysis of Digital Marketing
After an in-depth study of pestle analysis of Digital Marketing; we have realized that Digital Marketing is highly significant for the growth of businesses and companies. If you are learning about the Digital Marketing PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
