A Statista report from 2024 states that digital advertising spending worldwide amounted to 549.51 billion U.S. dollars in 2022. The source projects that by 2027, this spending will reach 870.85 billion dollars. These statistics reveal that internet ad expenditures are expected to grow by 8.4 percent in 2023.
Naturally, this raises the question: Why is digital marketing experiencing such growth? The answer lies in the privileges that come with digital marketing.
Every business wants their advertisements to reach the right target audience. Physical and outdoor advertisements are typically used to capture all segments of the market. However, modern businesses need better solutions; they desire a way to reach only the most accurate consumers, which is why they turn to online paid advertisements.
One of the problems companies face is having fewer or insufficient funds for marketing their products. Without a big budget, they may not be able to advertise their products and services on big buildings, flyovers, or other high-footfall locations. However, this is not the case with online paid advertisements, as they are economically affordable. Any type of business, from local shops to multi-national companies (MNCs), can benefit from them. Their affordability allows businesses to comfortably advertise their brands and services.
Even after being affordable, brands don’t have to compromise on their marketing. Brands have the freedom to choose who they want to target. The target audience could be residents of a specific locality or a billionaire sitting on the opposite side of the world. It depends on the company’s specific interest—whether they want to market their products and services to a specific locality or take the advertisement globally.
Choosing online paid advertisements also helps advertisers make better decisions by looking at statistics like Click-Through Rates (CTR) and ad engagement. It serves as a crucial survey, showing which products and services have greater demand in the market.
Businesses are often confused: Are online paid advertisements more efficient than physical advertisements like banners, canopies, and hoardings? There’s no perfect answer, as both online and physical advertisements have their own benefits. However, when it comes to knowing whether the advertisement was efficient, online paid advertisements have the edge. Advertisers can view real-time statistics like views and engagement.
One reason that makes online paid marketing more efficient and result-friendly is the way the audience can engage with the company’s products and services directly. Appealing video visuals help consumers visualize the product, which increases click-through rates. This eventually drives more traffic to the brand’s webpage and leads to more conversions, whether those are sales, sign-ups, or other goals, directly helping the company become a legitimate brand.
By consistently posting ads to relevant target audiences, businesses can increase visibility, which leads to a stronger brand presence across many social media platforms. This directly helps improve brand image and gain consumer trust.
Online ads are most preferable if the firm is looking for:
- Targeting an accurate market
- Budget-friendly advertisement
- Efficient marketing
- Global or specific reach
- Real-time data
