Digital Marketing Market

Digital Marketing Market Analysis, By Service (SEO, Social Media Marketing, Content Marketing, Email Marketing, SEM, Link Building Services, Affiliate Marketing, PPC), By End-use Industry (BFSI, Retail, & Consumer Goods, Business & Consumer Services), By Region - Forecast 2022 to 2032

Analysis of Digital Marketing market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Digital Marketing Market Outlook (2022-2032)

The global digital marketing market is expected to reach US$ 321 billion in 2022 and climb to a market valuation of US$ 887.2 billion by the end of 2032, expanding at a high-value CAGR of 10.7%.

Digital marketing accounted for 43% share of global advertisement spending in 2021.

Report Attributes


Digital Marketing Market Size (2021A)

US$ 290 Billion

Estimated Market Value (2022E)

US$ 321 Billion

Forecasted Market Value (2032F)

US$ 887.2 Billion

Global Market Growth Rate (2022-2032)

~10.7% CAGR

North America Market Share (2021)


East Asia Market Growth Rate (2022-2032)

~11.7% CAGR

United States Market Growth Rate (2022-2032)

~9.8% CAGR

Key Companies Profiled

  • Porter Novelli
  • Cuker Agency
  • Leo Burnett
  • Carat
  • Spark Foundry
  • Wieden+Kennedy
  • Grey Group
  • LOLA MullenLowe
  • Webimax
  • Ignite Visibility
  • 97th Floor
  • Rise Interactive
  • WebFX
  • Mad Fish Digital
  • Split Reef
  • Location3

Know thy Competitors

Competitive landscape highlights only certain players
Complete list available upon request

Surging Business Spending on Digital Advertising Worldwide

Digital marketing is widely used to promote a brand or product. It has become a modern technique to increase brand awareness, drive traffic, and acquire leads and new customers. With the increasing penetration of smartphones, the Internet, and social media platforms, digital marketing has gained immense popularity among small and medium enterprises alike.

Digital marketing agencies play a crucial role in the sales of business products and services by evaluating and identifying new digital technologies with the help of web analytics tools and measuring the traffic, along with visitors’ trends on websites. This helps in the improvement of digital marketing campaigns and client acquisition.

  • More than 90% of small businesses use social media in their marketing strategy.
  • As per Content Factory, a marketing and digital PR agency, an average organization spends between US$ 200 to US$ 350 per day on social media marketing.

Forecast Analysis

  • Short Term (2022-2025): Post-COVID, people have started spending more time on smartphones and social media platforms, which has created a lucrative opportunity for digital marketing agencies across the world.
  • Medium Term (2025-2028): Major economies such as the U.S., China, and India are expected to see a high number of start-ups and foreign companies over the coming years. Moving enterprises to e-Commerce and online channels of distribution is expected to drive the demand for digital marketing services.
  • Long Term (2028-2032): The surging trend of digitalization is expected to drive the demand for digital marketing services more than physical ads. Advertising will become a core activity for every small- and medium-sized organization to deal with the intense competitive rivalry in the market in the long run.

The global market for digital marketing registered a CAGR of 8.9% from 2017 to 2021. As per projections by Fact.MR, a market research and competitive intelligence provider, revenue from digital marketing services is projected to surge at 10.7% CAGR between 2022 and 2032.

Digital marketing market forecast by Fact.MR

Market share analysis of digital marketing based on service and region. Under the service segment, social media marketing dominates with 31% market share in 2022.

Which Factors are Driving Digital Marketing Demand?

“Digital Revolution in Business Sector Post-COVID”

The pandemic has led many companies to undergo a rapid transformation in their go-to-market models. It has been observed that enterprises moved to 70% of digital transformation in their businesses post-pandemic.

  • According to a report commissioned by the Interactive Advertising Bureau, spending on digital advertising saw 12.2% year-over-year growth in 2020.

With the announcement of lockdowns in various economies and the closure of retail shops and businesses during the COVID-19 pandemic, many organizations opted for online platforms for product sales. To build brand awareness and traffic to business websites, enterprises are using various digital marketing strategies, especially social media marketing.

“Continuously Growing e-Commerce Sector”

Consumer attention has shifted from traditional forms of media towards more digital ones such as the Internet, which has advanced due to the expansion of on-demand services provided by digital advertising companies. Even while they still visit physical stores, consumers these days search for things online and visit e-Commerce websites, read customer reviews, and get product prices online.

  • According to the United Nations Conference on Trade & Development, e-Commerce sector growth and online retail sales have grown from 16% to 19% in 2020.

Advertising firms use this strategy to market their clients' companies, goods, and services to increase sales and brand recognition.

  • As per Wolfgang Digital, around 43% of e-Commerce traffic comes from organic Google searches.

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What is Challenging the Expansion of Digital Marketing?

“Various Security Concerns Associated with Digital Marketing”

Growing concerns regarding data security and privacy are expected to restrain the growth of the market to some extent. The main problems with cloud-based digital marketing tools are malware injections, the use of unsecured application programming interfaces (APIs), phishing assaults, and social engineering attempts.

Any of the aforementioned security concerns could result in incidents such as data and identity theft, which would result in significant losses because businesses have enormous data repositories of customer and business information. Since security is the top requirement for any brand, website protection by digital marketing agencies is an extremely important aspect to be looked at.

It is usually advised to secure the network and network connections by utilizing firewalls and encryption solutions such as VPN, along with having a good antivirus system in place. Strict norms and regulations to be followed for customer data collection for use in digital marketing tactics may also challenge market growth.

“High Reliance on Modern Technology”

Digital marketing is highly dependent on modern gadgets such as Internet technology, smart devices, and others. This factor will result in excessive investments by marketers in modern technologies.

Additionally, technological issues such as slow page loading speed, poor search engine optimization, website downtime, crude website design, and others can lead to the loss of web traffic. This will ultimately impact the diversion of visitor traffic to a competitor's website and a downturn in the online sales of products.

Country-wise Insights

Why is There High Demand for Digital Marketing in the United States?

The United States digital marketing services market is projected to expand at a CAGR of 9.8% during the study period. High market growth is anticipated with the increasing preference for online shopping in the country.

  • According to the United Nations Trade and Development, the share of online shopping in retail sales increased significantly during 2019-2020 to about 3%.

Also, the preceding shift from desktops to mobile phones and the increasing penetration of smartphones are attributed to the growth of mobile advertisements in the country. The smartphone penetration rate has grown in the United States during 2018-2021 to around 5%.

What’s Contributing to China’s Growth in Digital Marketing?

Increasing organizational spending on advertisements in China is a major factor driving market growth. China’s estimated total spending was US$ 105 billion on advertisements in 2021.

China has a leading share in the social commerce sector with a large portion of the population using the Internet. This is an essential factor in the potential rise in digital marketing, as social commerce is projected to account for one-fifth of all online sales in the country.

Moreover, the Chinese population has seen a substantial shift in interest towards mobile applications, which has created a potential growth opportunity for in-app online advertising.

The China digital advertising agencies market is projected to expand rapidly at a CAGR of 11.8% through 2032.

Category-wise Insights

Why Does Social Media Marketing Dominate the Service Type Segment?

Social media has evolved from its original purpose of promoting social interaction and content sharing to providing an interactive path for both corporations and consumers. In addition, platforms such as Facebook, YouTube, Instagram, and Twitter have also revolutionized the way marketing is been initiated by marketers, by reaching highly relevant target audiences with algorithms and search engine optimization.

Also, influencer collaborations have been one of the fastest-growing social media advertising tactics where brands collaborate with influencers and promote the content created by influencers endorsing their brands.

Why Does the Retail & Consumer Goods Sector Account for a Leading Market Share?

The retail & consumer goods sector is highly competitive with the presence of various consumer goods providers in the market. With intense competition in the market, consumer acquisition and retention have been the primary focus for every retailer. As such, digital marketing agencies are employed by retail & consumer goods manufacturers to stay competitive in the market.

Digital marketing agencies help in gathering the necessary information about consumers, generating leads, and acquiring new customers, as well as retaining existing ones.

As the industry is also moving online, the demand for digital advertising service providers has grown significantly. More than 25% of people worldwide purchase online, and 75% do so at least once every month. Almost two-thirds of consumer buying journeys begin online when they look at the full customer shopping experience.

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Competitive Landscape

Prominent digital marketing service providers are Porter Novelli, Cuker Agency, Leo Burnett, Carat, Spark Foundry, Wieden+Kennedy, Grey Group, LOLA MullenLowe, Webimax, Ignite Visibility, 97th Floor, Rise Interactive, WebFX, Mad Fish Digital, Split Reef, and Location3.

The global digital marketing market is highly fragmented and competitive due to the presence of several domestic and regional players. Various marketing strategies are being adopted by key players, such as acquisitions, expansions, collaborations, and partnerships.

For instance :

  • In April 2022, Infosys, a leading technology company, acquired a Germany-based digital marketing agency called Oddity. The acquisition of Oddity strengthened Infosys’s creative brand and experience design capabilities.
  • In January 2022, Smith, a global performance commerce agency, announced the acquisition of digital marketing company Adept, based in Columbus, Ohio.

Fact.MR has provided detailed information about the providers of digital marketing services positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of Digital Marketing Industry Research

  • By Service :

    • Search Engine Optimization (SEO)
    • Social Media Marketing
    • Content Marketing
    • Email marketing
    • Search Engine Marketing (SEM)
    • Link Building Services
    • Video Advertising
    • Influencers Marketing Services
    • Affiliate Marketing
    • Pay per Click Advertising (PPC)
    • Others (not mentioned elsewhere)
  • By End-use Industry :

    • BFSI
    • Retail and Consumer Goods
    • Business and Consumer Services
    • Healthcare
    • Manufacturing
    • Transportation and Mobility
    • Energy and Utility
    • Trading and Warehousing
    • Media & Entertainment
    • Hospitality
  • By Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

What is the outlook for the digital marketing services market?

The global digital marketing market is valued at US$ 321 billion in 2022 and is anticipated to reach US$ 887.2 billion by 2032.

Which region accounts for a leading market share?

North America leads the global digital marketing market with 36% market share.

How did the market fare over the past four years?

Revenue from digital marketing services increased at 8.9% CAGR between 2017 and 2021.

Which type of digital marketing service accounts for high revenue generations?

Social media marketing accounts for 31% share of global revenue.

Digital Marketing Market

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