A market study published by Global Industry Analysts Inc. (GIA) states, “Global Digital Advertising Market to Reach $1.5 Trillion by 2030.”
This forecast not only suggests the significant growth of the marketing industry but also indicates the vast scope of digital marketing opportunities that await businesses. However, to seize these opportunities, marketers must be agile, learn about the new digital marketing trends, and adapt those to stay relevant.
Welcome to our blog post about the future growth in digital marketing. Here, we will be covering the latest trends and advancements that will shape the future of digital marketing. This includes discussing key topics like augmented and virtual reality, purpose-driven marketing, blockchain, etc.
Let us begin by understanding the definition of digital marketing and exploring how it has evolved over the years.
2. What is Digital Marketing?
Digital marketing refers to the strategic use of digital channels and technologies to connect with your target audience and promote your product/services. It comprises a wide range of online activities such as SEO, social media advertising, content marketing, and more that enhance brand visibility, engage customers, and derive desired actions such as purchasing or subscribing to a newsletter.
Now that you know what digital marketing is, let’s move on to tracing the evolution of digital marketing.
3. Evolution of Digital Marketing
Digital marketing is a dynamic field where new technologies and trends emerge now and then. Let’s look at its transformation over the years, starting from its inception in the 1990s to the present year, 2023.
The 90’s
- The first search engine, Archie, unveiled the beginning of the search.
- Businesses started creating websites to establish an online presence.
- The first ever web-ad banner with a CTA was introduced.
- During this period, cookies were invented.
- Email marketing gained immense popularity.
- Google introduced AdWords and launched cost-per-click (CPC) advertising.
- Web analytics tools like WebTrends and Urchin emerged.
- Thus began the age of digital marketing.
The 2000’s
- Behavioural targeting emerged, allowing advertisers to target specific user interests.
- The launch of Wikipedia paved the way for user-generated content.
- Soon, LinkedIn, MySpace, and Facebook were launched, setting the stage for the rise of social media.
- Gmail laid the foundation for email marketing methods.
- Twitter was founded, and it popularised microblogging.
- Following YouTube’s launch, it opened new avenues for video marketing.
The 2010’s
- The launch of Instagram opened the path for sharing visual content, heralding the way for influencer marketing.
- Mobile usage surpassed desktop usage, which made marketers prioritise mobile optimisation and responsive design.
- With the launch of Facebook Live, real-time video broadcasting gained attention.
- Influencer marketing became mainstream, with brands collaborating with social media influencers to reach target audiences.
- Chatbots and AI-powered customer support solutions became prevalent, improving personalised client interactions.
- Voice-activated devices such as Amazon Echo and Google Home grew popular, leading to voice search optimisation.
- TikTok experienced rapid development, providing marketers a venue for short-form video content and influencer marketing.
The 2020’s
- The global COVID-19 pandemic caused a massive shift towards digital marketing as organisations embraced remote operations and increased internet activity.
- In-person events were limited; thus, virtual events and webinars grew in popularity, emphasising the necessity of online interaction.
- Artificial intelligence (AI) became more widely applied in marketing in 2023 as organisations used AI to automate activities, personalise marketing messages, and efficiently target ads.
Digital marketing has changed significantly throughout the years, and these changes will continue to shape how brands connect and interact with their audiences and achieve their goals.
Here are the top trends redefining digital marketing in the coming years.
4. Top Digital Marketing Trends of 2023
To stay ahead of the competition, businesses must be well-informed of the latest developments and be prepared to adapt their strategies accordingly. Let’s explore some of the top digital marketing trends –
4.1 Emergence of Augmented Reality and Virtual Reality in Advertising
Augmented reality (AR) uses technology to simulate digital elements such as sounds, pictures, and text in the real world. In AR, the users’ surroundings are enhanced without transporting them to a different world. On the other hand, in Virtual Reality (VR), the users are transported to a three-dimensional environment, giving them the sensation of being fully immersed in another realm.
As per Mumbrella’s report, 44% of Australians say that shopping online using AR tools has prompted them to buy something.
The study implies that these transformative technologies can help businesses capture users’ attention by providing interactive and immersive experiences. Companies can integrate AR and VR with e-commerce to promote a try-before-you-buy approach. These technologies can also be used to create captivating live events, present product or service demonstrations, and develop gamified content.
4.2 Increased Importance of Purpose-Driven Marketing Campaigns
“Nearly two-thirds of consumers globally (63 percent) prefer to buy goods and services from companies that stand for a shared purpose.” according to research from Accenture.
Modern consumers, especially millennials and Gen Z, support brands that emphasise ethical, social, and environmental issues and contribute positively to society. Hence, businesses can employ purpose-driven marketing campaigns to foster a deeper connection with consumers. At the same time, ensuring that the cause is meaningful and relevant is also essential.
Purpose-driven campaigns not only tap into human emotions and empathy, but also set brands apart from their competitors. It allows businesses to showcase their uniqueness and aids them to stand out in a crowded marketplace. Moreover, such campaigns often generate more media coverage and social sharing, increasing brand awareness and heightened visibility.
4.3 Embracing D, E, and I in Marketing Campaigns and Advertisements
In the ever-evolving marketing realm, businesses increasingly value Diversity, Equity, and Inclusion (D, E, and I) for crafting impactful campaigns. Diversity entails representing people of all genders, ethnicities, ages, faiths, abilities, sexual orientations, and more. Equity (E) underscores the importance of impartiality and fairness in marketing. While the third pillar, Inclusion (I), ensures that the campaign makes everyone valued regardless of background.
By incorporating (D), (E), and (I) into their marketing campaigns, brands can help build a more equitable society. Some ways to infuse (D), (E), and (I) include keeping the campaigns culturally relevant to people, featuring individuals from various backgrounds, and translating the website language to the local dialect. This synergy can help brands create compelling marketing initiatives that resonate with the target audience and foster connections.
4.4 Growing Emphasis on Blockchain and NFTs in Marketing Strategies
Blockchain and NFTs have emerged as pivotal components of modern marketing strategies, offering opportunities for engagement, authenticity, and value creation. In blockchain technology, all the data is stored in a decentralised, public ledger. Marketers can harness blockchain to provide verifiable proof of the authenticity behind their offerings. While NFTs or Non-Fungible Tokens enables brands to create limited edition digital asset.
Blockchain’s immutable nature ensures that information cannot be altered or tampered with. This means that brands can demonstrate the sourcing and ethical practices behind their offerings and establish trust with consumers. On the other hand, NFTs built on blockchain technology can be used to create loyalty programmes, rewards, or giveaways, that draw customers’ engagement with offerings, ultimately increasing brand loyalty.
4.5 Rapid adoption of Artificial Intelligence (AI) for customer data insights
In recent years, the influence of AI in the digital marketing industry has been revolutionary, and its importance is set to grow even more. Companies use AI to gain real-time insights into customer data and even store it. It helps marketers better understand the needs and preferences of their target audience. This has led to more targeted marketing campaigns which are highly persuasive.
Since AI can predict customer behaviour, it can help recommend products or services to customers based on their previous purchase history or online behaviour. It is also used in advertising for effective ad placements and to predict which ads can successfully convert leads. As a result, businesses can cut advertising costs and improve the user experience by reducing the number of irrelevant ads.
4.6 Rise in Social Commerce to boost conversion rates:
Social commerce refers to the seamless fusion of social media platforms and online shopping. Since most of the world’s population now uses social media, social commerce has become an obvious choice for brands to expand their business and connect with their audience.
As per a report by Insider Intelligence, “Social commerce retail earnings in the US are predicted to reach nearly $80 billion by 2025”.
This implies that consumers are highly interested in discovering products on their favourite social channels and purchasing through the same. Further, businesses can learn about consumer browsing habits by integrating shopping functionalities within social platforms. Moreover, by providing relevant suggestions, brands can enhance engagement and boost the chances of conversions.
4.7 Surge in Contextual Advertising to Enhance Audience Engagement
Contextual advertising delivers relevant ads to visitors based on the content and context of the user’s current activities. For example, if a user is reading an article about cars, they might see ads for car insurance or car dealerships. Contextual advertising is based on the idea that people are more likely to click on relevant ads.
The surge in contextual advertising is closely related to AI and machine learning advancements. These technologies enable businesses to process a large amount of data in real-time, ensuring the ads are dynamically matched to the most relevant content. This aids in the creation of highly targeted and contextually appropriate content that ensures meaningful engagement.
4.8 Preference for Voice Search Optimisation to Improve Brand Visibility
According to a report by UpCity, “In the US, 58% of consumers ages 25-34 use voice search daily. Meanwhile, 43% of people above the age of 55 use voice search weekly”.
The convenience and speed offered by voice searches is one of the significant reasons behind its growing popularity. It enables users to access information while engaging in activities such as cooking, driving, or exercising. This enhances user productivity and efficiency, making voice search an appealing option for multi-tasking individuals.
Voice searches are often more conversational and natural than text-based queries. Hence, businesses can incorporate phrases and keywords that match how people naturally speak in their web content and increase the chances of appearing in search results. By understanding user intent and adapting to changing search behaviours, brands can stand out and improve their overall visibility.
4.9 Popularity of Social Media Influencer Marketing
According to Influencer Marketing Hub, the influencer marketing industry is projected to reach $21.1 billion by the end of 2023.
This statistic indicates that the social media influencer landscape is rapidly growing and will soon become integral to modern digital marketing strategies. This powerful approach harnesses the credibility and authenticity of individuals who have established themselves as influential figures within specific industries.
Influencer marketing also enables businesses to tap into various niches, demographics, and geographical areas. Micro-influencers, who have a smaller but highly engaged following, can be used for localised and targeted marketing, while macro-influencers or celebrities can offer a broader reach. This will aid brands in establishing meaningful connections and amplify their reach.
4.10 Shooting demand for short-form video content
Short-form videos are characterised by their brief nature and captivating visuals. With the surge in TikTok and Instagram reels, users have become accustomed to short-form video content. They have gained immense popularity due to their ability to convey information, evoke emotions, and entertain in concise and engaging formats.
A well-executed short-form video campaign can result in viral spread and exponential brand exposure. These can be integrated across various marketing touch points such as social media, websites, and email marketing to engage users effectively. In addition, brands can leverage user-generated short videos to boost visibility and strengthen their relationship with their target audience.
Now that we have explored the digital marketing trends let’s examine how a digital agency can help you implement them.
5. How can a Digital Marketing Agency help?
A digital marketing agency can help businesses craft result-driven and effective marketing strategies that are agile and can be updated. They make your businesses remain aligned with digital marketing trends and technologies to ensure high conversion rates.
Growth Ganik is a full-stack digital agency that offers tailored marketing solutions for your business. Our marketers and strategists stay abreast of the latest tools and technologies in the marketing arena to provide you a competitive edge, generate more sales-qualified and convert those leads into customers.
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