1. Introduction to Digital Marketing
The skyrocketing internet penetration rates and the popularity of digital platforms have given a boom to the virtual world. The marketing trends are way different now from what they were before. Digital marketing has become one of the most used forms of advertising products and services. Companies are launching/switching to online mediums to promote their brands and attract potential audiences. It is estimated that 566 billion dollars were projected to be spent on digital marketing services as of 2022. The number will keep on increasing. The revenue will surpass 700 billion dollars by 2025.
Before diving deep into the potential of digital marketing first let us understand, what is Digital Marketing.
Digital marketing is a technique of utilizing the internet to market and sell products and services. It uses the power of electronic commerce to sell goods and attract potential audiences. Because of the outburst of internet growth, this field of marketing has gained much fame. The reason being the ease that it provides along with great numbers. Companies that market their products and service with just a few clicks. It provides the ease to showcase the product across the world. There are no geographical boundaries. This technique can help the companies fetch a larger customer base and are cost-effective too. It has a great commercial impact on the business.
There are various services/techniques that are a part of digital marketing. They are as follows:
- Search engine optimization (SEO)
- Social media marketing (SEM)
- Content marketing
- Email marketing
- E-commerce marketing
- Video marketing, etc
Marketing is restless and has changed over time. The dynamic business needs and catering to customers’ expectations have led to adopting new ways of marketing the products are services.
2. EVOLUTION OF DIGITAL MARKETING
The increased usage of the internet led to the adoption of new ways of marketing. Internet users raised gradually. Internet became an inevitable part of people’s lives. Seeing the potential and daily time spent on the internet, companies started adopting new ways of showcasing their products and services in the virtual world. To gain customers’ attention new ways were identified and developed.
Source:https://datareportal.com/reports/digital-2022-global-overview-report
With the increase in the number of internet users, came the exponential growth of digital marketing. The landscape evolved which included new search engines like Yahoo! (1994) and Google (1997). New e-commerce sites emerged like eBay(1995),
Amazon(1994),etc. Along with TV, radio, and newspaper, people also started using these platforms for marketing and spreading awareness. The customers were getting the information with just a few clicks and in their comfort. Companies were building their customer base with no geographical boundaries. This was a win-win situation for both.
Digital Marketing as a term first came into the picture in the 90s. This was when the server-client architecture came into the picture. The year 1999 is one of the most significant years in digital marketing history as web 2.0 was launched. This allowed the users to upload and share content. From here internet marketing took a new turn. Post this many social media sites, e-commerce websites, microblogging sites, and messengers were launched. All had the potential of attracting clients through the techniques like mobile marketing, SEO, SMO, e-mail marketing, campaigns, etc. Companies made use of predictive technology and all the above-mentioned techniques to increase their footprints in the digital world.
There is a linear graph when we see year-on-year change (growth) in the number of users. As on January 2022, the world population stands at 7.91 billion. Out of which more than half of people (4.95 billion) are internet users. This makes up 62.5% of the world’s population. This is a huge number and depicts the potential that the virtual world has.
Source: https://datareportal.com/reports/digital-2022-global-overview-report
With a click of a button, one can connect to anyone around the world. The more interesting fact is that this number is increasing year on year.
Source: https://datareportal.com/reports/digital-2022-global-overview-report
Looking at the numbers we can safely conclude that the stream has humongous opportunities. Some have been explored while some still are in their budding stage.
3. DIGITAL MARKETING- SCOPE, OPPORTUNITIES, AND CHALLENGES
The onset of the internet has led to changes in consumer expectations and needs. Now that everything is available at a click of a button, comfort and delight service is another factor along with the variety of options available. Many companies are working towards evaluating consumer behavior, developing a suitable product, and finding the best way to grab the attention of the audience. With the right digital marketing techniques, all this is possible.
The digital reform has paved the way for a new marketplace in the virtual world. Anything and everything is available on the internet. It just needs the customer’s attention. This is where digital marketing comes into the picture. It also helps in bringing a seamless and borderless economy as within a few clicks you can connect to another corner of the world.
3.1 SCOPE AND OPPORTUNITY OF DIGITAL MARKETING
Nowadays, many homegrown brands along with the MNCs are using digital marketing techniques to spread awareness about their products and services. Companies reach about 1 million customers through the social media platform- Instagram. More than 9 million businesses are using Facebook as a medium to connect with potential customers.
According to Statista, there has been positive quarter-by-quarter growth when we look at the active advertisers on Facebook.
Source (for reference): https://www.statista.com/statistics/778191/active-facebook-advertisers/
Companies are using social media marketing to enhance B2B as well as B2C digital marketing campaigns. The use of analytics has also increased. Now companies can effectively analyze the trends and demand in the market. By conducting real-time analysis, the marketers individualize the content for a specific target group. The response time is also quick.
Source (for reference): https://www.statista.com/statistics/778191/active-facebook-advertisers/
Companies are using social media marketing to enhance B2B as well as B2C digital marketing campaigns. The use of analytics has also increased. Now companies can effectively analyze the trends and demand in the market. By conducting real-time analysis, the marketers individualize the content for a specific target group. The response time is also quick.
Using artificial intelligence along with digital marketing, companies can customize the consumer journey. It helps in understanding what the customer needs and what are the pain points. Augmented reality and virtual reality are also being used to satisfy customers.
Increasingly companies are shifting towards online channels of conducting business. Because of this, the demand for digital marketing skills is increasing in the market. The scope of digital marketing as a career is humongous. The jobs continue to grow year by year.
3.2 CHALLENGES IN DIGITAL MARKETING
With the change in technological advancements, every day there is a new challenge. The risk of yesterday is different from what it is today! With scores of companies dealing in the same segment, the competition becomes high in the virtual world. One has to apply the most suitable digital marketing technique to remain at the top and grab the attention of the customer. Continuous work is required. Also, because of the free access and fast reach, consumers can give an open review which can affect the sales of the companies, if found negative. The transparency in the digital world compels companies to mold their pricing and service. Prevailing trend knowledge, discipline, and continuous work are needed while applying digital marketing techniques.
According to the WIX, here are some challenges for agencies as of 2020
4. DIGITAL MARKETING SERVICES AND THEIR STATS
The digital marketing technique is incorporated by different brands through various mediums. There are various services of digital marketing as mentioned earlier. The companies adopt the one that most suits their means and motives. Choosing the channel also depends on the ROI that they are expecting. Here are some of the most preferred services of digital marketing with their statistics:
4.1 SOCIAL MEDIA STATISTICS
Social media marketing is the process of gaining traffic through social media platforms. It is also known as paid marketing which includes the promotion of websites, products, and services. The channels used are Facebook, Instagram, Youtube, Twitter, Whatsapp, etc. These platforms are also used for remarketing techniques. According to datareportal.com, WhatsApp is the most favorite social media platform for working-age internet users followed by Instagram and Facebook (As of Jan 2022)
Source (for reference): https://datareportal.com/reports/digital-2022-global-overview-report
Social media users have increased at a faster rate than internet users. According to datareportal.com, the total social media users stand at 4.6 billion, as of Jan 2022. In 2012, the number was 1.48 billion. There has been growth at a CAGR of 12% in the past decade.
Source (for reference): https://datareportal.com/reports/digital-2022-global-overview-report
4.2 EMAIL MARKETING STATISTICS
Email marketing is the tool that is used to communicate to individuals to spread information about the product or service in a sophisticated way. It is one of the cheapest ways of marketing but the attrition rate is also high. One can target millions of people within one click but there may be a possibility that the customers ignore the mail if they do not find it of their interest. This is the reason why the subject line of such emails should be catchy and the mail body should be crisp and clear. Some users may get irritated with this technique as they may associate it with spam emails. Companies have to be very careful with this technique.
According to Statista, the email marketing industry is currently worth $9.62 billion and is set to grow to $17.9 billion by 2027. The average ROI of email marketing is $36 for every $1 spent. It is the second most popular marketing channel after social media. 87% of businesses use email marketing to distribute their content.
4.3 SEO STATISTICS
Search engine optimization plays a very important role in grabbing the attention of the customer. The top searches are most clicked upon. For the website to remain on top of the search engine, effective search engine optimization techniques are very important. 75% of people do not scroll to the next page of the search engine. The technique is based on algorithm and content drafting. More clicks on the website increase the chance of business.
According to a business research company, the global SEO market is expected to grow from $43.3 (2019) billion to $86 billion (2023)
4.4 E-COMMERCE STATISTICS
It is the practice of promoting the goods and diverting the traffic to the online store. Conversion and retention play an important role here.
The data from GWI tells that 6 out of 10 people who are working-age internet users, buy something online every week. The number is growing.
According to Statista’s digital market outlook, the global revenue associated with online purchases of consumer goods increased by half a trillion US dollars in 2021.
5. DIGITAL MARKET OUTLOOK- NATIONAL AND GLOBAL
Digital marketing has always been a growing field. With the advancement of technology and increasing dependency on the internet, the digital marketing outlook also grew. With this, the scope and usage of digital marketing can be seen both at the national as well as at global levels.
Digital marketing has always been a growing field. With the advancement of technology and increasing dependency on the internet, the digital marketing outlook also grew. With this, the scope and usage of digital marketing can be seen both at the national as well as at global levels.
According to a global digital report, every second 13.5 users are being added to social media worldwide. A typical global e-commerce shopper spends $1000 on online shopping every year. In China, online shopping computes 10% of their GDP.
According to Hootsuite’s perspective, Gen Z is the largest demographic group currently. They spend around 3 hours on average on social media. Internet usage is immense.
According to Hootsuite’s perspective, Gen Z is the largest demographic group currently. They spend around 3 hours on average on social media. Internet usage is immense.
The Internet has become an inevitable part of our lives. Companies understand this fact to the core. Embracing this fact, they have used this platform as a medium for marketing their goods and services.
Here are some interesting facts about Digital Marketing Industry at the national level:
- The current size of the industry in India is 21 crore (as of 2021)
- According to SEO Sandwich, by the end of 2025, digital will grow at a CAGR of 27.4% to surpass the Rs.50,000 crore mark.
- In 2024, mobile is projected to generate 77% of total ad spending in the Digital Advertising market.
- The new trend that has come into the picture is influencer marketing. It is expected to grow to 22 billion INR by the end of 2025.
- According to economics times, 96% of Indian marketers have high confidence in the ability of digital marketing to drive competitive advantage.
Besides search engine optimization and email marketing, Indian marketers are also utilizing and harnessing the power of social media to engage the audience. Social media was the leading online medium to reach out to and to know brands.
When we see the larger picture that is the global outlook of digital marketing, here are some stats and facts associated with it:
- On a global level, Ad spending in the digital advertising market is projected to reach $3.08 billion, by the end of 2022.
- In global comparison, most ad spending is generated in the United States
- According to Beroe, In 2020, the value of the worldwide digital marketing market was close to USD 305 billion. The market is projected to expand at a CAGR of 17.6% from 2021 to 2026, reaching an estimated value of USD 807 billion.
- The U.S. Market is Estimated at $155.3 Billion in 2021, While China is Forecast to Reach $254.9 Billion by 2026
- The market of Canada and Japan is expected to grow at the rate of 8.1% and 7.6% respectively
- Germany is forecast to grow at approximately 5.8% CAGR while the Rest of the European market (as defined in the study) will reach US$288.5 Billion by 2026
Companies are increasingly using digital marketing platforms to leverage their game of marketing. It is the best platform for branding and customer engagement. The cost is comparatively low and the results are very good. Analyzing the prediction and statistics, we can safely conclude that this industry has a bright future and there are best times ahead. The domain is not only benefiting the companies to scale up their business, but this field is emerging as a preferred career option for many people. The opportunities to grow in this field is immense.
6. DIGITAL MARKETING- AN EMERGING CAREER OPTION
Though traditional marketing is still prevalent in the world, digital marketing is taking over quickly. The affordability and analytics of the brand are immense. Companies are focusing on digital marketing aspects at an increasing pace. Online ventures are being launched. With the growth of online marketing, the demand for experts is also increasing at the same rate. Companies value employees who hold the latest skills. The data-driven approach makes it easier for the employees to prove their worth. Digital marketing is the need of the hour. The scope and growth Opportunities are high and increasing day by day. Here are some facts about the job sector:
- There are over 100000 jobs in India when it comes to digital marketing (as of Jan 2022). The number is expected to grow to 60 million by 2025
- The digital marketing expert earns 40000 INR per month in 2022. The salary can go up to 75000 INR by 2025.
- According to LinkedIn, the “Digital Marketing Specialist” role is among the top 10 most in-demand jobs
There is a digital marketing skill gap and companies are striving hard to find the right talent. To upgrade yourself with the industry demand, one can go for certifications. There are various levels of the course available in the market starting from beginner to advance level. One of the best certifications is provided by Educert Global. With years of experience in this field, they have gained trust and earned a fair reputation in the market. The teachers are highly knowledgable and make sure that the knowledge is imparted from both theoretical as well as practical points of view. It is an agency-based institute that offers internships and job opportunities as well. So what are you waiting for? Apply today!
7. GROWTH OF DIGITAL MARKET INDUSTRY DURING THE COVID-19 ERA
The digital market industry increased by leaps and bounds when the world got hit by the pandemic. The deadly disease made us confined to our houses but paved the way for new methods and mediums of doing business. Because of the lockdown, doing business physically was not possible but digital marketing along with technology helped people to start their online ventures. The impact was as follows:
- Increased Social Media engagement opened the gates for Social Media Marketing.
- Increase in demand for video and micro-content
- Increased online product research- online
- Managing web traffic
- Gathering a large audience with just a few clicks
- The operational cost of the companies was also reduced.
- As the businesses went digital
- The e-commerce’s share of global retail trade raised from 14% in 2019 to about 17% in 2020.
- Latin America’s online marketplace Mercado Libre, for example, sold twice as many items per day in the second quarter of 2020 compared with the same period the previous year.
- China’s online share of retail sales rose from 19.4% to 24.6% between August 2019 and August 2020
- African e-commerce platform Jumia reported a 50% jump in transactions during the first six months of 2020.
Though the businesses were impacted, yet, slowly and steadily they recovered and found new ways to survive. Now, this is the new normal. Companies are having high profits because of digital marketing techniques. The customer base has also increased and there are no geographical boundaries to do the business.
8. THE WAY FORWARD
According to statistics, the growth of the Indian e-commerce market is huge and it will push to Rs 7 trillion by 2023 due to the pandemic and advancement of the digital era. The growth is on an upward trend and has positively impacted the lives of people and businesses.
The future of digital marketing is secure and very bright. Every business, whether big or small, is trying to make its place in the virtual world. The upward trend is here to stay. Growing trends and opportunities in the field of digital marketing promise a brighter future not just for companies but also for people who want to build their careers in this field. With the advancement of technology, new techniques and ways would emerge to grab the attention of the customer online. To unleash the true potential of digital marketing, companies should make increasing efforts in this field.
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