They get treated as separate departments, and that's usually a mistake. The mechanism is identical — attention, then belief, then action. Only the plumbing differs.
Digital is cheap to enter, easy to measure, and brutally crowded. Real world — the local paper, letterbox drops, sponsorships, the signwriter, the footy club, the market stall — is harder to measure and carries a kind of trust that online advertising has spent twenty years losing. In a place like Launceston it is also underpriced, because the national agencies have all gone where the volume is.
The pattern that works for a regional business is one feeding the other: the sponsorship or the drop gets the attention, and the website, the Google listing and the reviews catch the person who looked you up afterwards. That's why I'd rather run both than hand you off between two suppliers.