According to a report released by Global Industry Analaysts Inc, by 2026, the global digital advertising and marketing market will hit US$786 billion – approximately AU$1 trillion.
The report, titled ‘Digital Advertising and Marketing – Global Market Trajectory & Analytics’ focuses on how COVID-19 has impacted the digital marketing and advertising industry, with particular relation to increases in online traffic.
In the report’s abstract, the authors write, “the large increases in online traffic provide opportunities for companies to keep their target audience engaged through digital marketing initiatives.”
“While overall digital marketing spending declined due the pandemic-induced cuts in marketing and advertising budgets during the lockdown, available budgets are being directed at digital marketing initiatives. In addition, advertisers are realizing higher returns on their investments owing to lower competition for advertising space.”
Consequently, the pandemic has meant that businesses who previously invested little in digital advertising are now reassessing it’s value to their overall strategies. This is particularly seen through click and display ads.
The report estimates that the US market will reach an estimated US$155.3 billion in 2021, while China alone is estimated to reach US$254.9 billion by 2026. It goes on to explain that factors like the web of connected devices is also impacting digital advertising, with “per capita spending on connected devices [remaining] high in the developed regions, with a significant portion of consumers purchasing mid- to high-end devices for various purposes.”
“As penetration of connected devices and consumer inclination towards digital solutions remains high, developed regions represent the primary markets for digital advertising and marketing, globally.”
Featured Image: iStock/BestForBest
