Global CPG Digital Marketing Market: Current Analysis and Forecast (2020-2027)
Digital marketing refers to advertisements delivered through digital channels such as search engines, websites, social media, email, and mobile applications at a high level. Digital marketing, using these online media platforms, is the process by which businesses support products, services, and brands. Today, consumers are highly dependent on digital means of product analysis. For example, Google marketing insights found that 48% of customers start their search engine inquiries, while 33% look at brand websites and 26% look for mobile apps.
Although digital marketing offers a huge web of platforms to which marketers simply must onboard their brands, online advertising is far more complicated than channels alone. Marketers must dive deep into today's vast and intricate cross-channel landscape to find tactics that create an impact through interaction marketing to reach the true potential of digital marketing. Marketers can gather useful insights into target audience preferences by introducing an omnichannel digital marketing strategy, thus opening the door to new consumer engagement approaches. In addition, businesses can expect an improvement in retention to be seen.
Digital advertisements, internet marketing, web advertising... whatever one could name it, online marketing for business is a big deal these days. After all, over the past decade, internet use has more than doubled and this change has greatly changed how people buy goods and communicate with businesses. On an estimate, in the world today, there are 4.66 billion internet users. Over the last 12 months, the total number of internet users around the world has risen by 319 million, with almost 875,000 new users every day.
Marketing methods have evolved over the years as the way customers consume information changes. Digital advertising has completely changed the primitive marketing methods and has further compelled the marketers to stay connected with their buyers via social media applications and the internet to sell their products and services. Accredited to high efficiency and effectiveness, digital marketing has been recognized by all business entities and now it is growing faster with every passing day.
Based on format, the CPG Digital Marketing market is bifurcated into Search Marketing, Email Marketing, Social Media Marketing, Content Marketing and Others marketing technique. It has been observed owing to ease of use, low budget way to reach the right audience has driven the preference for search marketing among the marketers. However, content marketing technique is expected to witness CAGR growth of 12.87% during the analyzed period.
Based on programming type, the CPG Digital Marketing market is bifurcated into programmatic and non-programmatic type. It has been observed that programmatic digital marketing technique held maximum share owing to greater transparency, ability to tackle ad frauds effectively and enhanced targeting capabilities. The market is anticipated to reach US$ 48.8 billion by 2027.
Based on the platform, the market is classified into desktop and mobile applications. In 2019, the mobile digital marketing was valued at US$ 16.27 billion. Increasing smartphone penetration, launch of user-friendly online shopping apps and booming internet scope has contributed towards the rising share of mobile phones during the analyzed period.
For a better understanding of the CPG Digital Marketing demand trend, a detailed analysis was conducted for the major region/country including North America (US, Canada); Europe (UK, Germany, France, Spain, Italy); Asia-Pacific (China, Japan, India) and Rest of the World. North America occupied the maximum share in the CPG Digital Marketing market in 2019. With the United States witnessing the marked shift in dynamics over the last decade due to surge in CPG Digital Marketing accredited to significant growth in mobile internet advertising along with digital ad spending in the country exceeding US$ 100 billion in 2018 has catalyzed the regional performance in the respective market.
Some of the major players operating in the market include Oracle Corporation, Microsoft Corporation, Accenture Interactive, PwC Digital Services, IBM Corporation, Amazon Inc., Deloitte Digital, Salesforce.com, Twitter, Google Inc. The industry has witnessed emergence of several digital marketing players in the local market in different countries.
The global CPG digital marketing market was valued at US$ 28.65 billion in 2019 and is projected to expand significantly with a CAGR of 7.8% from 2021 to 2027. Owing to digital marketing, engaging with target customers has become simpler for companies. Today, digital marketing has become a staple of every business model, especially over the last decade or so, and is important for any business trying to reach a wider audience and is typically more cost-effective than traditional marketing.