In the past decade, the world has shown a paradigm shift from analog to digital. The number of people consuming online information is increasing rapidly; thus, making digital marketing the best way for businesses to reach out to the audience.
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As the internet becomes intertwined with everything we do, the significance of digital marketing is becoming crystal clear. It has become an intact part of what a business is to its customers. With the evolving customer behavior and market trends, your business needs digital marketing to grow and thrive to keep up with the competition.
The Future of Digital Marketing
Irrespective of which business type they represent, global marketers agree that digital campaigns (of any media type or format) are crucial to their overall promotional efforts.
Here’s a look at the Projected Ad Spend Growth across the globe by media type or format for the year 2017-2020.
1. Projected Ad Spend Growth Worldwide
It is estimated that over half of the projected digital ad spend will be achieved by 2019.
In 2019, the worldwide digital ad spending will observe a rise of 17.6%, i.e., up to $333.25 billion. However, it will keep on rising till 2023.
2. Digital Ad Spending Worldwide
In some countries, like the US, digital marketing has become the dominant ad medium. According to data from Statista, the US with $197.47 billion spends the most on advertising as compared to other countries.
Indonesia and India are home to rapidly increasing digital and mobile users. Thus, Indonesia is the fastest-growing digital advertising market in the world, followed by India.
3. 2019 Digital Ad Spending Country-wise
|Sr No.||Country||Digital Ad Spending (in billions)|
Determining the most significant digital ad sellers of 2019, Google topped the list with 31.1% of total global ad spending. Its spending was worth $103.73 billion. Followed by it is Facebook with an expenditure of $67.37 billion. Though Amazon is chipping away the duopoly of Google and Facebook, it still remains a small player at the global level.
4. Largest Global Digital Ad Sellers of 2019
When we talk about industry-wise contribution towards global digital marketing spending, the retail sector surpasses all.
5. Industry-wise Digital Marketing Ad Spending
The above digital marketing statistics and trends can offer great insights into where you should plan to spend your time as well as resources.
How much to spend on Digital Marketing in 2019?
According to a study by the US Small Business Administration, a company should spend 7-8% of its gross revenue on marketing. For the year 2019, 50% of that budget should be dedicated specifically for digital marketing. However, it must increase to 55% in 2020.
Any average business spends 35% of its marketing budget on digital campaigns, which is definitely not enough. To thrive in this continuously growing competition and stay ahead of the curve, it is crucial to spend half of your marketing budget in digital marketing.
Let’s consider an example of a company making $2 million revenue. It imparts 7% of its revenue as its marketing budget, i.e., $140,000. Now, it should invest 50% of this marketing budget for its digital campaigns, i.e., $70,000. However, several tech-savvy companies rely heavily on digital marketing and might spend the majority of its marketing budget on digital strategies.
Now that you are clear of how much you should be spending on digital marketing, let’s move on to discuss how you should spend this money.
How should you allocate your marketing budget?
The landscape for marketing is broader and more complex. So, you must allocate your marketing budget judiciously.
There are numerous avenues where you can spend your money. This includes SEO, Social Media, Branding, Website, Press Release, Email, Print Ads, Events, and more. This year, the average firm is expected to spend 41% of their marketing budget to online sources. Out of which, search engine marketing will take up the most significant share.
When asked to digital marketers how they plan to change their budgets in the coming year, here is what they said:
Developing an overall strategy is essential.
John Lincoln, CEO of Ignite Visibility, said, “It’s incredibly important to be forecasting and making sure you have the right digital strategy.”
Let’s explore the digital marketing domains that can enhance your reach and do wonders to your business.
YouTube Ads are cherished much in the digital marketing realm. Identify the channels that your target audience watches the most and create a personalized experience. Undoubtedly, these ads are obtrusive, but if you succeed to grab the viewer’s attention in the first 5-10 seconds, it can prove beneficial.
Let your audience know instantly that you are providing the information they are looking for. Hook them with humor or something that makes you stand out from the rest. Though it isn’t easy, it can pay off.
Search Engine Optimization (SEO)
There’s a lot of competition for acquiring top spots on Google. Therefore, SEO must never be neglected. If you want to have notable results, spend $2,000 – $5,000 behind Search Engine Optimization.
This will help you rank on Google, get noticed by your audience, bring traffic on your website, and increase leads.
In terms of personalization, none can beat Facebook’s advertising platform. Mostly an ad on Facebook is either about a company’s product or its services. It can be an excellent benchmark to spend $1 on Facebook Ads for every 100 of your website visitors.
Google is also a great platform to showcase ads. Though Google Ads and Facebook Ads are primarily different in terms of consumer intent, you can leverage it too for your digital marketing spending.
You cannot dedicate a specific amount for paid search ads. All it requires is a trial and error process. Check which ads work for you, which of them helps you generate most leads, and then put your resources on it. If you are high up in Google’s search results, it makes more sense to get in front of more people.
Social Media Influencers
When people think of social media influencers, they come up with names that have millions of followers. But, this is not the case with digital marketing.
At first, determine the best social media platforms for your niche and stay responsive on it. Then, team up with a local or micro-influencer to expand your brand awareness.
Content is king. We’ve heard this ample number of times, and it remains vital for digital marketing too. Be it creating tutorials, guides, resources (blogs, how-to pieces), and tools; your content must be fresh, optimized, and authoritative.
The main objective of all the content you provide should be creating connections and developing relationships with your clientele.
Future Trends that will impact Digital Marketers by 2020
Based on a survey, here are a few upcoming technologies that will take up space in the present digital marketing scenario.
You are now well-aware of the statistics, future trends, and top-notch areas where you should invest. So, make sure you utilize the realities of your business first and then decide how much you should spend on digital marketing in 2019.