Over the years, spending on digital marketing has skyrocketed. In 2021, companies worldwide poured a whopping £407.55 billion into digital ads. And the forecast? It's expected to surge even higher, hitting a jaw-dropping £651.02 billion by 2026.
Now, let's zoom in on some insights from 2022: around 20% of companies were shelling out between £780 to £2340 monthly on content marketing alone.
To paint a clearer picture, take a look at this table summarizing spending trends across different digital marketing areas:
| Digital Marketing Activity | Spending in 2023 (£) | Forecast Spending in 2027 (£) |
|---|---|---|
| Search Ads | £217.83 billion | £303.84 billion |
| Video Ads | £137.93 billion | £179.62 billion |
| Banner Ads | £126.22 billion | £161.46 billion |
| Influencer Marketing | £24.05 billion | £37.34 billion |
| Classified Ads | £16.42 billion | £17.94 billion |
| Audio Ads | £7.91 billion | £10.00 billion |
| Total | £530.06 billion | £710.04 billion |
Search Ads Dominate Spending: Search ads command the highest spending in both 2023 (£217.83 billion) and the forecast for 2027 (£303.84 billion). This indicates that businesses consider search advertising as a highly effective and essential component of their digital marketing strategies.
Substantial Investment in Video Ads: Video ads also receive significant investment, with spending reaching £137.93 billion in 2023 and forecasted to increase to £179.62 billion by 2027. This suggests the growing popularity of video content and the effectiveness of video advertising in engaging audiences.
Banner Ads Remain Significant: Despite the rise of other digital marketing channels, banner ads continue to attract substantial spending, amounting to £126.22 billion in 2023 and projected to reach £161.46 billion by 2027. This indicates that banner advertising remains a relevant and valuable strategy for businesses.
Rising Importance of Influencer Marketing: The data shows a notable increase in spending on influencer marketing, from £24.05 billion in 2023 to a forecasted £37.34 billion in 2027. This highlights the growing recognition of influencer marketing as an effective way to reach and engage target audiences through trusted personalities.
Steady Investment in Classified and Audio Ads: While classified ads and audio ads receive comparatively lower spending than other digital marketing activities, there is still a steady investment in these channels. This suggests that businesses see value in utilizing classified and audio advertising to complement their overall marketing efforts.
Overall Growth in Digital Marketing Spending: The total spending across all digital marketing activities is projected to increase from £530.06 billion in 2023 to £710.04 billion by 2027. This indicates a positive growth trajectory for digital marketing as businesses continue to allocate more resources to online advertising.
Is your business investing in digital marketing? We'd love to hear your thoughts at blogs@recruitomatic.co.uk
