Digital Marketing Services Category Intelligence
- Market Trends
- Technology & Innovation Trends
- Global Supplier List and Capabilities
- Mergers and Acquisitions
Market Size North America
$110 - 130 Bn
Market Size Europe
$48 - 52 Bn
Market Size Asia Pacific
$120 - 130 Bn
Market Size Middle East - Asia
$6 - 10 Bn
Digital Marketing Market Overview
The global digital marketing spend is valued at $290–310 billion in 2019 and future estimates looks much stronger, due to continual attraction on digital channels. It is forecasted to grow at a CAGR of 12.8 percent to reach around $330–340 billion in 2020.Online video and mobile advertising spend has fueled the overall digital marketing spend in North America and Western Europe. The mobile ad spend contributes to approximately 39-42 percent of the digital spend in Western European markets, such as the UK, Germany, and Spain and is expected to reach 55-60 percent by 2019. Users in the European market consider mobile in-app display to be intrusive, and due to this, spend for mobile in-app display is expected to decrease in the region as it will be considered harmful to the brand value.
The report covers 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. It also 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, e-mail creatives, on-site web experience, A/B testing, analysis of results and optimization recommendations across all channels such as mobile, social media and websites. They may 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 commonly adopted digital marketing procurement model, where consolidation of requirements is possible with global agencies. Regional bundling approach is another digital marketing procurement model that is widely preferred by automotive buyers to achieve 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
Table of Contents
- Digital Marketing Services Executive Summary
- Global Digital Marketing Industry Outlook
- Supply Demand Trends
- Brexit - Impact on Sourcing Digital Marketing Services
- Digital Marketing Services Market Analysis
- Global Digital Marketing Maturity and Industry Trends
- Global Drivers and Constraints
- Regional Market Outlook
- Digital Advertising Value Chain
- Key Observations Across Digital and Mobile Channels
- Industry Outlook
- Porter's Five Forces Analysis
- Digital Marketing Services Supply Analysis
- Supply Trends and Insights
- Digital Agency Services Classification
- Key Global Agency Profile
- Key Regional Agencies: Service Portfolio
- Agency SWOT Analysis
- Agency Service Differentiation
- Digital Creative Agency: Selection Criteria Parameters
- Digital Marketing Services Procurement Practices
- Sourcing Models
- Pricing Models
- Engagement with Digital Agency
- Cost Saving and Negotiation Strategy
- KPI and SLA Components
- Digital Channel - specific KPI
- Analytics in Digital Marketing Campaigns
- Measuring the Effectiveness
- Digital Marketing Services End - user Industry Update
- Financial Services
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Industry Outlook & Drivers
Digital Marketing Services Global Market Outlook
The global digital marketing spend was valued at $170–190 billion in 2016 and future estimates looks much stronger due to continual attraction on digital channels. It is forecasted to grow at a CAGR of 13 percent to reach around $280–310 billion in 2020.
Globally, North America will continue to dominate the digital marketing industry by contributing around 39–40 percent towards the global digital marketing category spend. Digital ad spend in APAC has surpassed Europe and this growth is primarily driven by China & emerging Asian markets due to increasing investments on technology and digital platforms in these regions
Digital marketing market analysis shows that the Key Performance Indicators (KPIs) are innovation, cost, quality and service.
The medium digital marketing market maturity countries include: Nicaragua, Nordic Region, Rest Of Western Europe, Rest Of Middle East, India, Singapore, ASEAN Countries, Mexico, Chile, Egypt, Peru.
Digital marketing market research shows that labor costs (wages and benefits) constitute 45–52 percent of the total cost.
According to digital market intelligence, the global digital marketing market size as of 2019 was $300–310 billion and is expected to grow at a CAGR of 17.6 percent to $360–380 billion by 2020.
Global Digital Marketing Maturity
Online videos and mobile ad spend have fueled the overall digital marketing spend in North America and Western Europe. Mobile ad spend that once accounted around 6–9 percent of the total digital spend share in 2013 is expected to contribute around 37–39 percent of the digital spend in key Western European markets such as the U.K., Italy and Spain by 2017
Global Digital Marketing Industry Trends
Users in the European market consider mobile in-app display to be intrusive, and due to this, spend for mobile in-app display is expected to go down in the region as it will be considered harmful to the brand value
Global Drivers and Constraints
The digital marketing spend in Europe and North America together is expected to grow at a CAGR of 11 percent and will contribute around 65 percent of the global digital marketing spend in 2018. This modest growth is due to the positive spend inclination from key sectors like BFSI, CPG, entertainment and media and telecom.
RTB and Digital OOH Media
- Rising adoption of Real-Time Bidding (RTB) of online display ad slots and increasing consumption of rich media and video advertisements are expected to be the key driving factors for display advertising spend in the coming years in Western Europe
- 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 percent of the drivers (in the US) watch TV as their vehicles are refuelled Targeted Mobile Ad Delivery Emerging advertising technologies (such as RTB platforms, location-aware and bandwidth-aware technology tools) are enabling contextually relevant and personalised ads based on device features, mobile internet speed, location and other factors
Difficulty in Calculating ROI
- Most marketers believe that they are not sure about the impact of digital marketing as they often encounter lack of synergy between marketing and procurement centres. Thus, securing a budget for digital marketing investments becomes difficult because providing a digital marketing return on investment is the most critical challenge
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.
Digital Marketing Market Frequently Asked Questions
- What is the expected growth rate of the digital marketing market?
- As of 2019, digital marketing spend globally was valued at $290- $310 billion. The future of the industry looks promising considering the continual attraction towards digital channels. According to the forecasts, the digital marketing industry is expected to grow at a CAGR of 12.8 percent and reach a market value of around $330-340 billion in 2020.
- What is the market overview of the digital marketing industry?
- In North America and Western Europe, the overall digital marketing spend is driven by online video and mobile advertising. About 39-42 percent of the digital spend in the Western European market regions like the UK, Germany and Spain is contributed from mobile ad spends. However, the end-users in the European market find the in-app display on their mobiles as intrusive. This will lead to a decrease in the spend on mobile in-app display as it can hurt brand value.
- What is the global market outlook of the digital marketing industry?
- North America dominates the digital marketing industry and contributes around 39-40 percent towards the global digital marketing category spend. The growth of digital ad spend in APAC is driven by China and emerging Asian markets and with increasing investments on technology and digital platforms, the market in these regions has exceeded Europe.
- What are the key drivers behind the growth of the digital marketing industry?
- From the digital marketing market analysis, it has been found that the indicators driving the performance are innovation, cost, quality and service.
- What are the high maturity regions as far as the digital marketing industry is concerned?
- The regions of medium digital marketing market maturity are Nicaragua, Nordic Region, parts of Western Europe, parts of Middle East, India, Singapore, ASEAN countries, Mexico, Chile, Egypt, Peru