Marketing Realities in a Growing Digital Economy
Technology is quickly changing the way we view and interact with the world today. The global economy is also aligning with technological innovations at a meteoric pace. Hence, today the world is witnessing a speedy migration from the conventional economic model to the digitized or digital economy. The digital economy refers to the economic activities that stem from the global interconnectedness between people, businesses, and data over the Internet. Therefore, for marketing in the twenty-first century to be relevant and effective, it must align with the various intricacies and demands of the global digital economy. According to the Interactive Advertising Bureau (IAB), the Internet economy is growing seven times as fast as the larger US economy. The report further provides that the Internet accounts for about 12 percent of the gross domestic product (GDP). Also, the Internet accounted for $2.45 trillion of the US GDP in 2020. Statistica reported that by 2025 about 94.2 percent of people in the United States would have access to the Internet. Also, by 2025 mobile phone subscriptions will hit 154 per 100 individuals in the US. Global digital marketing will reach $786.2 billion by 2026, while digital marketing and advertising in the United States is estimated at $155.3 billion in 2021.
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Marketing Realities in a Growing Digital Economy
- 2. Technology is quickly changing the way we view and interact with the world today. The global economy is also aligning with technological innovations at a meteoric pace. Hence, today the world is witnessing a speedy migration from the conventional economic model to the digitized or digital economy. The digital economy refers to the economic activities that stem from the global interconnectedness between people, businesses, and data over the Internet. Therefore, for marketing in the twenty-first century to be relevant and effective, it must align with the various intricacies and demands of the global digital economy.
- 3. According to the Interactive Advertising Bureau (IAB), the Internet economy is growing seven times as fast as the larger US economy. The report further provides that the Internet accounts for about 12 percent of the gross domestic product (GDP). Also, the Internet accounted for $2.45 trillion of the US GDP in 2020. Statistica reported that by 2025 about 94.2 percent of people in the United States would have access to the Internet. Also, by 2025 mobile phone subscriptions will hit 154 per 100 individuals in the US. Global digital marketing will reach $786.2 billion by 2026, while digital marketing and advertising in the United States is estimated at $155.3 billion in 2021.
- 4. The Internet has changed the market dynamics and patterns of interaction between buyers and sellers around the world. The digital surge has facilitated a growing marketplace on the Internet where one can easily access virtually any product or service. During the early stages of the COVID-19 pandemic, people spent significantly more time online due to restrictions on movement. In response, most companies attempted to engage their customers by boosting their digital marketing efforts.
- 5. With digital marketing, businesses can make more fact-based decisions, relying on customers' digital data. Buyers can also make well-informed choices. Today, information about a company's products and services is readily available online. Buyers can compare the quality of services and products of a company to that of its closest competitors. Digital marketing involves creating awareness about various products and services using digital tools. It is, however, essential to note that there is a difference between Internet marketing and digital marketing. While the former is solely restricted to marketing on the Internet, the latter can be accomplished using digital means ranging from digital billboards, video games, mobile devices, and software and mobile applications.
- 6. Digital marketing is crucial because it often creates a level playing ground for most competitors in a particular market. Although large companies might possess a financial advantage regarding digital marketing, smaller companies can also attract a large online audience by leveraging the benefits of brilliantly executed ideas through the effective use of digital marketing.
- 7. According to the United Nations Conference on Trade and Development (UNCTAD) Digital Economy Report, 2021, digital data is crucial for creating personal and social value. The report noted that the COVID-19 pandemic has fast-tracked the process of shifting to the digital economy. Hence, the report recommended that innovative methods be adopted to ensure equitable distribution of the economic gains that will stem from the digital economy.