Digital marketing is now a growth engine for many companies in various sectors, such as financial institutions and telecommunications companies. It has the potential to drive a 5 to 8 percent increase in revenue in 12 months by capturing more online traffic and engaging with consumers more effectively. According to McKinsey, some financial institutions have increased their digital sales fivefold, while telecommunications companies can reduce absolute customer loss by 15 to 40 percent, and retailers can significantly increase sales. The pandemic has caused a shift in digital marketing strategies, particularly for companies that had previously given digital marketing initiatives a low priority.
As brands continue to invest heavily in promotions and affiliate marketing to reach online shoppers, digital advertising in the US is expected to grow. Small businesses and digital companies, such as application developers, are also spending more on digital advertising. China-based sellers are using global digital platforms to reach foreign consumers. This engine for small businesses will make a key contribution to driving the continued growth of digital media and the marketing ecosystem.
The Interactive Advertising Bureau (IAB) is an important player in the digital marketing space. It conducts critical research on interactive advertising and educates brands, agencies and the business community about the importance of digital marketing. Its members are comprised of more than 700 media companies, brands, agencies and leading technology firms responsible for selling, delivering and optimizing digital advertising marketing campaigns. The penetration of connected devices and the inclination of consumers towards digital solutions remain high, making developed regions the main digital advertising and marketing markets worldwide.
As such, overall spending on digital marketing has declined due to cuts in marketing and advertising budgets caused by the pandemic during the lockdown. However, available budgets are being earmarked for digital marketing initiatives, with marketers increasingly opting for a pay-for-performance approach. At WordStream, Susie is the content marketing specialist who uses her experience as a PPC consultant to share tips, tactics and best practices in a constantly evolving marketing and advertising space. She believes that this digital migration will drive the continued growth of a healthy and competitive digital market driven by innovation and entrepreneurship.