Majority of people across the globe use the internet thanks to cheap data services and easy availability of mobile technology. The numbers are growing and in the next decade, approximately 85-90 percent of people across the globe will use the internet in one form or the other. Such increasing internet usage will enhance the prospects of it being used as a medium for marketing will grow even more. Digital marketing has become a big thing now that has also leveled the playing field for all businesses. Regardless of the size of a business, it can create and maintain its presence on the digital landscape with a relatively lower marketing budget and an equal amount of efforts which a multinational corporation would do. Such a situation also reflects that digital marketing has become a need of the time and its impact is quite evident as well.
Businesses are spending on forming and implementing digital marketing strategies regardless of their size. Digital marketing has turned into a global industry which is witnessing huge annual expenditures. The current global digital marketing market size is huge and it accounts for annulling expenditure of approximately $290-$310 billion that is expected to grow even more. The expenditure is expected to reach approximately $330-$340 billion in 2020. With easily available online video platforms and mobile technology, advertising has become an important part of modern digital marketing strategy. It has specifically fueled market growth in North America and Western Europe. Western Europe accounts for approximately 39-42 percent of the digital spend whereas countries such as the UK, Spain, and Germany are expected to increase their overall digital marketing spend to 55-60 percent. The growth is not going to be positive in the mobile in-app display segment in Western Europe as the users find it intrusive.
Global Outlook on Digital Marketing:
Digital marketing is a set of numerous digital tactics that aim to connect to the potential and existing customers. In the early phase of digital marketing, it was only used in big corporations and companies and it was flooded with misconceptions that it requires huge expenditure for implementations. However, it did not take much time to destroy such myths and now businesses are aware of all the tactics and methods that marketers can use to create an impactful online presence. In any case, the contribution of easy availability of internet, the emergence of social media platforms, and mobile technology cannot be ignored as it allowed people to use the internet and connect to each other. In a nutshell, this created the audience or a potential customer base for the businesses for targeting and selling their products and/or services. Here is a look at how digital marketing has created authority over the modern business world.
The digital marketing expenditure in North America and Europe together is expected to grow at a CAGR of 11 percent. It will contribute to the industry at a global level in terms of overall spend which is 65 percent in total.
Rise of RTB and Digital OOH Media:
Real-Time Bidding (RTB) and Out-of-Home (OOH) advertising are growing and their digital marketing aspect along with it. Online display ad slots and rich media advertising are increasing and these are going to be the driving factors in the regions such as Western Europe in the coming years. On the other hand, OOH media advertising is limited to the developed countries such as the U.S. Here, 78 percent of the drivers watch TV while refueling their vehicles that can aid targeted marketing and advertising. These can result in contextually enabled, personalized ads that use mobile speeds and device features as a framework.
A major challenge is ROI calculation as most marketers and business owners are not sure about the impact of digital marketing. This is also due to the lack of synchronization of efforts between the departments such as marketing and procurement. Therefore, setting and securing a budget for the digital marketing separately becomes a pain for many business owners as they are not very sure about the impact that they will be able to get on their business through it.
Marketers are also adopting for software-enabled techniques that can be integrated into an email and other related techniques. Email marketing which is a major aspect of digital marketing accounts for 10 percent of the total online expenditure by digital marketers in the United States. This also contributed to the high agency and marketer adoption rates in the region.
Digital marketing started as an emerging market in 2005 and it has now become one of the most preferred mediums of marketing across the globe. The market has penetrated almost every region with decent infrastructure and industrial growth and it is expected to continue to do the same for the next decade. This is due to the high online presence of businesses and increasing use of engagement requirements.