Final answer:
Businesses that develop communication exchanges with customers using digital media are engaged in digital marketing. This has become essential due to the impact of new media, which provides interactive and targeted communication channels, leading to increased global competition and the need for effective digital marketing strategies.
Step-by-step explanation:
When businesses use digital media including the Internet, mobile, and interactive channels to develop communication exchanges with customers, they are engaged in digital marketing. New media, encompassing all interactive forms of information exchange like social networking sites, blogs, podcasts, and virtual worlds, has fundamentally changed the landscape of media communication, leveraging technological advancements that have occurred in the past thirty years. Today, consumers are exposed to digital advertisements and can interact with brands via different online platforms, significantly shifting traditional business approaches towards more innovative and direct engagement strategies.
These new technologies have not only altered the way we communicate and interact socially, but they have also revolutionized marketing, paving the way for targeted, interactive, and potentially democratic exchanges between businesses and their audience. Moreover, the advent of new media has infused more competition in the market, as consumers can now access products and services globally, necessitating businesses to adapt by using new media more effectively to reach their audiences. Consequently, digital marketing strategies have become integral for businesses, allowing for personalized and immediate communication with customers.