Marketing lies at the core of the success of any business. The reason why we are saying that marketing lies at the core is that however good your product is, there exists limits on the impact and extent of organic marketing techniques, not that exceptions do not exist, but as they say, exceptions are not rules. The time, business and commerce are existing, so has the concept of marketing. Only the nature and form of the tools and techniques employed change but the ultimate objective has always remained the same – letting more and more users and customers know of the products.
In the early times, marketing in a way was pursued through organic and peer-based groups and the word spread and more consumers poured in. Then with time, this changed to advertising in newspapers and it broadened the horizons for the companies and organizations and began taking a wider space. With the evolution of multi-media, especially the television, marketing shifted to that and it required much more creative approaches as every minute and second of the campaign started to cost. As we have seen, as the times have changed so have the techniques for marketing too. A breakthrough in the evolution of marketing has been, the coming up of the Internet and most importantly smartphones in the last couple of decades, and what this has done is open up entirely new horizons of marketing and broadly it is called the digital marketing and encompasses a wide range of activities and tools and techniques.
Size of Marketing technology Industry
Before getting into specific digital marketing solutions available and used worldwide it is interesting to note the overall size of the digital marketing industry value. As of the most recent figures from the year 2021, the industry value worldwide for the digital marketing industry stands out at roughly 345-350 billion USD, and interestingly just for the markets of the United States and the United Kingdom, this value stands at 150-155 billion USD.
But many experts believe that until and unless newer and breakthrough techniques come to the forefront, the markets in United Stated and the United Kingdom are reaching their threshold and the markets that will show the most promising results are India and South- East Asia region. We will also be keeping a close track of these market segments in time to come, so stay tuned with us for more updates on these market segments.
Number of Marketing solutions
The sheer growth in the number of marketing solutions speaks for the growth of the sector. Before getting into the numbers and data, it is interesting to note that not only the size of the market has expanded but what has also broadened is the nature and techniques of solutions now being available. Many tech professionals and companies are now involved in the digital marketing sphere and they offer some of the most innovative solutions that can help your company do the most targeted and precise campaigns as they say the return on investment made in advertising and marketing through these digital tools are quite high. In the year 2011, it is estimated that just 120-135 solutions were available for industry professionals and as per the latest data available for the year 2020, this has climbed up to more than 8500 solutions and it is for the companies and professionals to decide what solutions and tools will be most suited for achieving the goals.
How much do companies spend on digital marketing and marketing technologies?
This is an interesting thing to note. We have seen till now the size of the industry and the solutions that are being used by them, but you might be curious and be wondering how much are companies spending on these technologies out of their total annual spending. We have the answer to your query. The budget generally that is kept for marketing through digital technologies by companies in advanced economies roughly stands at a quarter of the total spending on marketing through various tools that include agency services and paid media too. Almost 25% of the budget spending is earmarked for this, and, many experts feel that this is the most targeted spending a company can make.
Major solutions and techniques adopted and their growth potential
The major solutions that are adopted are Data, management, commerce & Sales, content, experience, advertising, promotions, social and relationships and many more. In this particular blog, we will try to see some of these, what are they and how have been their performance.
Data
Data has evolved as one of the most potent tools in the hands of professionals and as many people believe what crude oil did in the last century, data has the potential to replicate and even surpass that in the current century and within the first two decades, it has shown promising results. What data does is that it helps in understanding the market trends, and consumer behaviour in a much more nuanced approach and also helps in gauging the performance of the tools that were being used to understand how effective they were. Several tools are used with data as their base, the main ones are data science, mobile analytics, data management platforms and many more, we are in a way surrounded by data, therefore, it depends upon the skill set of the professionals to ensure how they can use it obtain information in a more lucid manner possible.
This section of digital marketing is showing the most promising results, and it was observed that the year-on-year growth rate for it has been more than 25%. Now, this was the reason behind our stress on the role and importance that data-based marketing and digital solutions are bound to show in the coming years and decades.
Social and Relationships
Relationships have often been understood as the crux of the successful operations of any business enterprise and the internet and technology have touched it beyond any measures. The breakthrough technologies that are being used in this are call analytics, chat bots monitoring, user interaction and much more. Personalisation of user experiences and demonstration of business value directly to users and consumers have been achieved in a great way through this.
Social and relationships have been seeing robust growth in their performance and it is observed that the YoY growth for this has been in the range of 13-15% in the past couple of years.
Content Management
Because of the deep relationships, it builds between customers and businesses, content is critical to digital marketing. It allows businesses to provide consumers with innovative ideas. These concepts improve a company’s reputation. Deliver and keep high-quality material to maintain profitable, long-term relationships with current consumers while also attracting new ones.
There are a variety of strategies available, but two of the most popular are content marketing and social media marketing. Content marketing helps businesses establish consumer trust. It also ensures their commitment. This type of marketing gives the impression that the customer is being informed rather than sold to. Search engine optimization (SEO) promotes your product and drives organic traffic to your website. It’s a free approach to obtaining more leads by connecting your product to a searcher.
Content management is one of the most traditional ways of content management and still it is showing a robust growth rate of 5-7% but the other methods like SEO and various other tools engaged with this are showing very promising results.
Every penny that you invest in marketing must have quantifiable and targeted benefits and reach and digital marketing and advertising are showing great potential and it is believed that the share that is currently standing at 25% of the total budget allocations is bound to increase in future and we are here to track all the recent developments in the digital marketing segment.
