Financial reports can feel intimidating, especially for founders without a finance background. But understanding the basics can dramatically improve decision-making and confidence. In this practical guide, Rebecca Nankya Ssemugabi breaks down how to read a balance sheet in simple, everyday language, supported by a hands-on balance sheet generator you can try yourself. M ost founders don’t struggle with running a business. They struggle with understanding the numbers behind it. And few reports feel more intimidating than the balance sheet. But here’s the truth: a balance sheet is simply a snapshot of what your business owns, what it owes, and what’s actually yours at a specific point in time. The Balance Sheet in One Line Every balance sheet is built on one simple equation: Assets = Liabilities + Equity Assets are what the business owns Liabilities are what the business owes Equity is what belongs to the owner(s) If this equation balances, the balance sheet makes sense. A Simple Exa...
Recently, in a job interview, I was asked about my digital marketing experience. I shared everything about my work, such as handling social media, SEO, copywriting, etc., but the interviewer was actually asking if I had experience in advertising and PPC. I smacked my head in disappointment. The issue wasn’t with him—most people, including those in MNCs, equate digital marketing with advertising and PPC. They don’t realize that digital marketing is a vast field, and advertising and PPC are just two tools in the repertoire. So, I thought I’d share a post explaining why digital marketing is more than just advertising and PPC.
1. Digital Marketing as a Subset of Marketing
The term "digital marketing" suggests that it is a subset of marketing (or, to be more precise, traditional marketing). It could be defined as "marketing done through digital tools and technologies." Even though the world has shifted from offline to online mediums, digital marketing remains grounded in the principles and philosophies of traditional marketing. A marketer with comprehensive knowledge of both mediums can holistically integrate the best practices from both worlds.
2. Digital Marketing Uses Marketing Principles
Digital marketing applies the same principles used in traditional marketing. For example, the 4 Ps—Product, Price, Place, and Promotion—are just as relevant in the digital space. Whether promoting a product via a billboard, print ad, or on Facebook, the principles are the same: selecting the right niche, delivering the right message at the right time, and using the best channel to reach the audience. While digital marketing has made analytics more robust and accurate, traditional marketing also uses metrics to analyze campaigns. Understanding your target audience, crafting the right message, and analyzing customer behavior are all concepts rooted in traditional marketing that carry over into digital strategies.
3. Marketing Terms and Metrics Are the Same
Have you noticed that the terms used in marketing software are the same as those found in traditional marketing textbooks? Terms like Return on Investment (ROI), Click-Through Rate (CTR), Reach, Impressions, Conversion Rate, Open Rate, etc., are not used by coincidence. These and other marketing terms are deeply rooted in traditional marketing. In the 80s and 90s, marketers analyzed the reach and engagement of print ads. Today, a digital marketer does the same for YouTube ads.
4. Building Relationships, Not Just Posting Ads
Now we come to a common misconception that irritates me: the idea that digital marketing equals posting ads on search engines and social media. Digital marketing is a vast and multifaceted field. It starts with strategy and planning and extends through SEO, SEM, social media management, content marketing, community building, email marketing, video marketing, data analysis, and yes, advertising and PPC. The goal isn’t just to post ads and hope leads fall into your lap. The essence of marketing is creating and nurturing relationships with your audience, which can be best achieved through content marketing—strategically creating content that resonates with your audience.
5. Being a Good Digital Marketer Requires Strong Traditional Marketing Skills
A digital marketer with a sound understanding of marketing principles will always outperform one who only knows how to post ads. Traditional marketing requires a deep knowledge of consumer behavior, communication skills, market research, and data analysis. Digital marketing demands similar skills. In short, traditional marketing lays the groundwork for success in the digital world.
6. Digital Marketing Tools Are Extensions of Traditional Tools
The software and technologies used in digital marketing are extensions of the manual tools and methods used in traditional marketing. For example, the terminologies used in email marketing—such as open rate, conversion rate, tracking leads, and performance analysis—are similar to those in direct mail marketing. CRM software has evolved from manually recording customer details. Personalization, which is so crucial in digital marketing, stems from the same process of manually recording customer preferences. YouTube ads are the digital offspring of TV ads, and print ads have found a new home on social media.
Conclusion
I hope I’ve presented my case with substantive examples. To summarize: digital marketing is a subset of traditional marketing. It’s a vast domain with multiple facets, including SEO, SEM, SMM, email, video, WhatsApp marketing, etc. Traditional and digital marketing share the same principles, like the 4 Ps of marketing. The tools and technologies used in digital marketing are digital extensions of manual tools and methods. A marketer proficient in both fields can guide marketing efforts more effectively than someone skilled in only one. As they say, "The whole is greater than the sum of its parts."
What do you think? Do you also think advertising is digital marketing? Let me know.
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