The US digital advertising market is anticipated to grow by $166.87 billion between 2022 and 2026, with a CAGR of 13.34% for the forecast period. The market is being driven by the rise of in-app advertising and the shift in advertising spending from traditional to online.
Did you know that more than 3 quarters of Americans use the internet daily? Additionally, 26% of users are online “almost constantly,” and 43% log on more than once per day, which is why digital marketing services are highly demanding.
When it comes to mobile internet users, these numbers are even higher. 89% of Americans use the internet at least once per day, and 31% use it constantly. As a marketer, leveraging the digital sphere through online advertising, brand building, offering excellent customer service that attracts potential customers, and more is crucial.
History of the Market – How it All Started?
A fresh understanding of marketing emerged in the 1920s, influencing business strategy and altering the structure of American businesses. As an orientation, marketing required thinking of a business as an organization that sold goods rather than just producing them.
By “marketing,” we mean organizing the company to coordinate production, distribution, sales, and service according to realistic observations of the available customers. Pioneers of the marketing approach to management learned the value of differentiating their products from their rivals, having various products to offer consumers, and using aggressive advertising to sway consumers’ behaviour in the 1920s and 1930s.
Exactly when marketing was growing as a conscious business strategy, advertising was working its way along in the 1920s. What promoted consumer values in American society and the rise of consumer society was the maturation of advertising in the 1920s.
Then and Now of The Digital Market
Past: Product marketing emphasized the features of the product, such as what new technology had been added since the previous version, how it differed technically from its rivals or its distinctive qualities. Everything revolved around the item. Brands assumed consumers would buy their products if they believed they were the best available.
Now: The truth is that the American consumer doesn’t care about how unique your product is and doesn’t want to hear about it. They want to know how your product will address their issue, how much effort it will require, and whether it will complete the task successfully the first time. The American consumer is looking for answers.
How Companies Speak To Customers
Past: In the past, most brands used a PR agency or a quarterly report to communicate their crucial messages to American consumers. To get the statement syndicated in the desired media, the PR team would take the company’s words, drop them in an article, add a quote or two, and collaborate with a team of editors. Brands would turn to paid advertising if press releases weren’t used (more on that in a minute). The outcome was the same regardless of the technique. To the American Consumer, brands were speaking in monologue.
Now: A dialogue has taken the place of the monologue. Brands are communicating with the entire American consumer in two directions for the first time (not just over-the-counter conversations with the occasional customer). Platforms, technologies, and industries have been developed to improve this two-way communication. The American Consumer now expects brands to engage with them on a one-to-one basis because this practice has become so ingrained in the purchasing process.
Referral Referral marketing
Past: A powerful marketing strategy, albeit for a small social network. Rarely did the potential customer have many friends and family members they could actively ask for referrals from. On that network, there were:
- Interactions with neighbours and coworkers in person
- Making calls to family and friends
- Celebrity recommendations from a reliable source
A variety of options, but at most a limited variety.
Now: The social network of American consumers has been significantly expanded by the growth of digital media and social networking. According to our research, the average person has 500 friends connected to them on social networks. Instead of requesting recommendations from each of these friends and family members separately, the American Consumer can crowd-source recommendations by making a quick Facebook post and gathering feedback. Consumers can make buying decisions after reviewing peer-to-peer reviews like Yelp and Google.
What’s The Present and Future Scope?
It should come as no surprise that the digital ad market has been expanding, given the increasing number of people using the internet each year. Over the coming years, digital advertising spending is expected to increase worldwide, including in the US, thanks to the ever-rising digital marketing services.
The most recent data indicates that in 2022, US digital ad spending will reach $239.89 billion. This represents an increase of 13.6% from 2021 when spending reached $211.20 billion.
Over the coming years, US ad spending on digital channels is anticipated to increase even more. In 2023, it is expected to reach $270.73 billion. It will have surpassed the $300 billion threshold by 2025 and make up more than 75% of all media spending.
Are you looking for effective digital marketing services to give your brand a compelling voice? We at Propel Guru, a full-fledged sales and digital marketing agency, offers you top-notch and robust digital marketing services centred around your business requirements. Get in touch with us now!
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