Analysts See Possibilities Galore for Digital Marketing
The worldwide market for digital advertising and marketing is expected to reach $946.9 billion by 2027, according to a new report by Global Industry Analysts (GIA).
That's a sharp increase from 2020, when the market was valued at $357.3 billion, GIA's data shows. Current estimates value the market in 2022 at $476.9 billion. The analyst firm expects a compound annual growth rate (CAGR) of 14.9 percent through 2027.
Display, one of the segments analyzed in the report, is projected to record a 16.7 percent CAGR and reach $565.8 billion by 2027, while the search segment is set for a 13.1 percent CAGR for the next seven years.
In the United States alone, GIA estimated the digital advertising and marketing market at $140.2 billion in 2020. In China, the world's second largest economy, the same market is forecast to reach $237.2 billion by 2027, expanding at a CAGR of 15.1 percent. Other noteworthy geographic markets include Germany, Japan, and Canada, forecast to grow at 11.7 percent, 8.3 percent, and 10.1 percent respectively through 2027. Latin America will expand at a 12 percent CAGR through 2027.
While overall digital marketing spending declined during the COVID-19 pandemic, available budgets were directed at digital marketing initiatives, with advertisers realizing higher returns on their investments amid lower competition for advertising space, GIA found.
In its report, the analyst firm also found that clicks and display ads are among the most prominent digital marketing initiatives. Of those, clicks were found to be more expensive but yielded a better return on investment, particularly as th declines in digital marketing budgets across the spectrum resulted in lower costs per click. As a result, marketers are gaining more clicks for the same cost, the report said, noting that proactive advertisers with long-term outlooks are using the lower costs of clicks to improve their marketing plans and stand to gain the most when economic conditions improve.
The report identifies Acxiom, Alibaba, Amazon, Baidu, Dentsu, Eniro, Epsilon Data Management, Meta (Facebook), Google, IAC/InteractiveCorp., Microsoft, LinkedIn, Sohu.com, SXM Media, Tencent, TradeDoubler, Twitter, Xaxis, and Verizon Media as leaders in this industry segment.