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The Digital Marketing Spending Market size is estimated to grow at a CAGR of 8.71% between 2022 and 2027. The market size is forecast to increase by USD 323.29 billion. The growth of the market depends on several factors such as digital transformation across multiple sectors, increased credibility, and the growing proliferation of digital marketing software.
This report extensively covers market segmentation by platform (mobile devices and desktops), type (search ads, display ads, social media, e-mail marketing, and others), and geography (APAC, North America, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
Figure 1: Digital Marketing Spending Market Share
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Digital transformation across multiple sectors is a key factor driving the growth of the market. The global digital marketing spending market is propelled by digital transformations in education, telecom, media, and entertainment sectors. Telecom advances like 4G and 5G enhance high-speed internet access, while digital ads on smartphones shift preferences and drive tech adoption. These changes enable services like free calls, video calls, and mobile TV.
Digital marketing lets users view videos via various devices, including laptops, TVs, and desktops. Education's digitization necessitates advanced databases and platforms for online learning subscriptions. IoT, cloud computing, big data, AI, and augmented reality transform education. Tech progress and digitization's rise will fuel global digital marketing spending in the future.
Increasing number of ad-exchange platforms is a key trend shaping the market. Many platforms, such as Google, Yahoo, and Facebook, have opened their inventories to RTB-based advertising. Yahoo was the first platform to do so, and it was followed by Google. These exchanges are now supply-side platforms.
Facebook also launched its ad-exchange platform, FBX, to reap the benefits of RTB-based advertising. However, Facebook shut it down on November 1, 2016, to pursue a move onto the mobile platform. With an increase in the number of visitors logging into Facebook, the global RTB market is expected to experience significant growth during the forecast period, in turn supporting the growth of the global digital marketing spending market.
Lack of short-term return on investment is a key challenge hindering market growth. Digital marketing entails a lasting approach, demanding several months to years to yield augmented customer loyalty or sales growth. This prolonged timeline complicates the assessment of ROI and profit forecasts. The issue is amplified by the lack of transparency in the programmatic ad spending sector. Immediate ROI absence leads to uncertainty among vendors regarding investment profitability, curbing substantial investments in programmatic ads and human resources.
The market share growth by the mobile devices segment will be significant during the forecast period. In this segment, many countries are investing heavily in their IT infrastructure and continuously adopting new technologies to embrace digitalization. This is helping companies to keep up with the changing consumer behavior while tapping into the growing market demand within the low-cost brackets. As opposed to desktops, mobile phones are portable. Desktops are losing their market share to mobile devices in the digital marketing spending market because of the increased penetration of the latter in the overall digital advertising market. Such factors will increase the segment growth during the forecast period.
Figure 2: Digital Marketing Spending Market by Platform (2017-2027)
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The mobile devices segment was valued at USD 385.39 billion in 2017 and continue to grow by 2021. In this segment, a vital factor influencing the shift from desktops to mobile devices is the increasing popularity of cross-device advertising. Leading companies, such as Google, which uses cross-device advertising, are investing heavily in digital marketing. The consciousness of these companies and their reliance on non-cookie-based tracking methods ensure higher incorporation of mobile-specific data, and not just third-party cookie data, by major industries. Digital marketing campaigns on mobile devices are two times more effective compared with desktop advertising and four times more effective among affluent users of digital media. Thus, digital marketing campaigns are likely to influence the growth of the market during the forecast period.
Based on type, the search ads segment holds the largest market share. Search advertising strategically positions online ads on web pages, reflecting search engine query results—sponsored outcomes atop, others below. Examples include Google AdWords, Apple Search Ads, AdRank, and Bing Search Ads. Ads' ranking employs a second-price auction. COVID-19-induced lockdowns shifted work to homes, elevating screen time and fostering the global digital marketing spending market growth. Consequently, a favorable trajectory is anticipated for the global digital marketing spending market throughout the forecast period.
Figure 3: Digital Marketing Spending Market by Region
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The APAC digital marketing spending market is shaped by dense populations and surging Internet penetration. Digital media's surging popularity fuels regional growth potential. Smartphone users, particularly with over 80%, access social media, notably the highest via smartphones. Social media engagement time also skyrockets. The future of programmatic advertising hinges on mobile devices, fostering market growth.
Urbanization and e-commerce adoption further boost the market. However, strict internet regulations in countries like China, India, and South Korea hinder revenue growth; China notably bans major platforms like Facebook and Twitter. Advanced economies like Australia and Japan drive the market but growth shifts toward emerging economies like India and China due to saturation. China's vast online user base, Baidu, industrial maturity, technology adoption, and strict policies make it an alluring SEO market prospect.
The 2020 COVID-19 outbreak hit APAC's economy. Lockdowns in countries like India, China, Japan, and others halted industries, driving demand for digital marketing as offline activities stopped. This boosted the 2020 regional digital marketing spending market. 2021 saw lockdowns ease due to vaccinations, reviving sectors like retail and IT. As businesses go digital and people use platforms like Facebook, Instagram, Twitter, and LinkedIn, demand for digital marketing will rise, spurring APAC market growth.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Facebook- The company offers digital marketing spending for Social Media Management.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Alphabet Inc., AppLovin Corp., Coalition Technologies LLC, Dentsu Group Inc., Disruptive Advertising Inc., Effective Spend, Ignite Visibility LLC, L7 Creative, Meta Platforms Inc., Microsoft Corp., Omnicom Group Inc., Oracle Corp., Perfect Search Media, Power Digital Marketing, Silverback Strategies Inc., Thrive Internet Marketing Agency, Twitter Inc., Verizon Communications Inc., WebFX, and InMobi Pte. Ltd.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
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Digital Marketing Spending Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 8.71% |
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Market growth 2023-2027 |
USD 323.29 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
7.67 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, China, Japan, UK, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., AppLovin Corp., Coalition Technologies LLC, Dentsu Group Inc., Disruptive Advertising Inc., Effective Spend, Ignite Visibility LLC, L7 Creative, Meta Platforms Inc., Microsoft Corp., Omnicom Group Inc., Oracle Corp., Perfect Search Media, Power Digital Marketing, Silverback Strategies Inc., Thrive Internet Marketing Agency, Twitter Inc., Verizon Communications Inc., WebFX, and InMobi Pte. Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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