Digital Marketing Market Overview
The global digital marketing market was valued at around $290–310 billion in 2019 with future estimates looking much stronger owing to continual attraction on digital channels. The digital marketing industry report forecasted the industry to grow at a CAGR of 12.8%, reaching around $330–340 billion in 2020.
Rising investments in online video and mobile advertising have fueled the overall digital marketing expenditure in North America and Western Europe. The mobile ad expenditure contributes to approximately 39-42% of the digital spend in Western European markets such as the UK, Germany, and Spain and was expected to reach 55-60% by 2019.
Customers in Europe consider mobile in-app display to be intrusive, and as such, spending on mobile in-app display is expected to decrease in the region in order to avoid devaluing the brand image.
This digital marketing industry report covers the regional market overview, growth rate, digital marketing market size, end-use industries, and identifies regions with a well-developed market for digital marketing. The report also identifies the opportunities and challenges that impact the digital marketing services and provides Porter's Five Force Analysis for these regions. The report includes supply trends and insights, and provides a comprehensive study of the key regional digital marketing service agencies such as iProspect, Havas Digital, SapientNitro (Acquired by Publicis Groupe), VML Group and RAPP. Further, it shares the procurement best practices with sourcing strategy, pricing analysis and service capabilities in the digital marketing industry.
Digital marketing agencies provide a broader set of services, such as strategic planning, campaign management, email creatives, on-site web experience, A/B testing, analysis of results and optimization recommendations across all channels such as mobile, social media and websites. Some of the agencies provide some proprietary technology of their own, but most rely on automation providers that have in-depth expertise in that specific area.
According to digital marketing market analysis, full-service outsourcing is the most prevalent digital marketing procurement model, where consolidation of requirements is possible with global agencies. The regional bundling approach is another digital marketing procurement model that is widely preferred by automotive buyers to achieve a balance between cost and quality.
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Digital Marketing Services Market Trends
Category Intelligence on Digital Marketing Services covers the following:
- Information relating to market, supply, cost, and pricing analysis
- Hard-to-find data on cost and TCO models, supplier details, and performance benchmarks
- Macroeconomic and regional trends impacting cost, supply, and other market dynamics
- Category-specific negotiation and sourcing advice
Industry Outlook & Drivers
Digital Marketing Services Global Market Outlook
Global digital marketing generated $300-310 billion in revenues in 2019. Experts predicted that digital ad revenue will be down by 19-25% in 2020 as 60-65% of advertisers, at one point, paused the campaigns and events due to the COVID-19 pandemic.
However, social media and streaming services are expected to pick up the pace globally by 2021.
Global Digital Marketing Maturity
Mobile ad expenditure that earlier accounted for 6–9% of the total digital spend in 2013 was expected to contribute around 37–39% of the digital spend in key Western European countries such as the U.K., Italy, and Spain by 2017. Subsequently, the digital marketing industry report forecasts it to play an even bigger role in the market.
Global Digital Marketing Industry Trends
- Retailers are increasingly adopting location-based ad services to interact with consumers by offering them tailored updates on discounts, offers, and products, which is considerably driving the digital marketing industry growth.
- The rising penetration of electronic gadgets and the development of high-speed networks such as 4G and 5G technology has led to an uptick in demand for mobile advertising thus opening new growth opportunities for marketers to enhance customer relationships.
- Given the amplifying competition, marketing tactics are moving from selling to consumer satisfaction and retention. The data gathered via digital marketing campaigns is used to assess customer behavior patterns, which is further tailored to optimize ad campaigns.
Global Drivers and Constraints
The digital marketing market size in Europe and North America collectively was expected to balloon at a CAGR of 11% and contribute around 65% of the global revenue in 2018. This robust growth is owing to the positive expenditure inclination from key industries including, BFSI, CPG, entertainment, and media and telecom.
RTB and Digital OOH Media
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Rising adoption of Real-Time Bidding (RTB) of online display ad slots and increasing consumption of rich media and video advertisements are expected to propel display advertising market size spend in the coming years in Western Europe
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Adoption of digital Out-Of-Home (OOH) media is limited to the developed countries; e.g., the emergence of digital TVs in gas stations, where 78% of the drivers (in the US) watch TV as their vehicles are refueled. Per digital marketing industry report, Targeted Mobile Ad Delivery Emerging advertising technologies (such as RTB platforms, location-aware, and bandwidth-aware technology tools) are enabling contextually relevant and personalized ads based on device features, mobile internet speed, and location.
COVID-19 Impact
The COVID-19 pandemic has compelled people to remain indoors. This has further increased the consumption of the internet. Following the physical distancing measures, consumers are socializing through online platforms. Social media marketing activities witnessed a significant rise in March 2020, compared to the previous quarter.
With COVID-19-induced restrictions, several brick-and-mortar stores are going online as consumers are increasingly shopping on established e-commerce platforms. As such, marketers are focusing on maintaining the omnichannel presence by monitoring the most preferred platforms among customers and sending customized messages on only those platforms.
Difficulty in Calculating ROI
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Most marketers believe that they are not sure about the impact of digital marketing as they often encounter a lack of synergy between marketing and procurement centers. Thus, securing a budget for digital marketing investments becomes difficult because providing a digital marketing return on investment is the most critical challenge.
Existing Privacy Concerns
While digital marketing solutions provide myriads of benefits, security concerns associated with data access by hackers and crackers is negatively impacting the market growth. These issues consist of the use of an increase in malware injections, unsafe Application Programming Interfaces (APIs), and social engineering attacks that are most common in driven digital marketing solutions. As businesses house chunks of data that entails business and customer information, either of the above security concerns trigger a serious loss.
Key Observations Across Digital Channels
Digital component with medium strategic importance
- Marketers are adopting software-enabled, automated and measurable e-mail techniques
- In the US, e-mail marketing shares almost 10 percent of the total online ad spend by the marketer
- Agency and marketer adoption rate is very high in the US
Why You Should Buy This Report
- The report provides insights into the global and regional industry trends, digital marketing market size, value chain analysis, and market outlook for the APAC, MEA and Australia regions.
- This digital marketing market research report lists out the industry drivers and constraints and a detailed Porter’s five force analysis for emerging and developed markets.
- It lists out the agency billing rates across the globe and does a SWOT analysis on key players like Havas Digital, iProspect, Publicis Sapient, etc.
- The digital market intelligence report gives the best digital marketing procurement practices, sourcing and pricing models and end-user digital marketing market update.
