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The digital retail marketing market is expected to grow by USD 1,879.8 billion, at a CAGR of 36.5% between 2023 and 2028. The rapid expansion of social media stands as a pivotal driver in the growth of the market. This comprehensive report provides essential insights into the evolving dynamics of the industry, enabling businesses to pinpoint growth opportunities within the dynamic digital retail landscape. As consumer behavior increasingly shifts online, the integration of social media platforms becomes instrumental in shaping marketing strategies. The report highlights trends and innovations that empower businesses to adapt and thrive in the digital retail space. By leveraging these insights, companies can enhance their digital marketing efforts, optimize customer engagement, and capitalize on emerging market trends. In a competitive marketplace driven by digital transformation, understanding and utilizing these dynamics are essential for sustaining growth and gaining a competitive edge.
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The market is revolutionizing the shopping experience for retailers and consumers alike. By leveraging digital marketing trends, retailers can cater to specific audiences and exceed expectations through personalized promotions and optimized store layouts. This transformative impact extends to enhancing brand identity and loyalty among customers, adhering to brand guidelines to maintain consistency across digital platforms. The benefits of digital retailing include increased customer engagement, operational efficiencies, and expanded market reach, translating into improved marketing and revenue outcomes. Implementation of innovative strategies is crucial for retailers to capitalize on business opportunities in the digital marketplace. Companies like Zappos exemplify success in the retail business by prioritizing customer satisfaction and pioneering digital initiatives. As the digital retailing landscape continues to evolve, businesses that embrace these trends stand to achieve sustainable growth and competitive advantage in an increasingly interconnected market.
The rapid growth in social media is a major factor driving the market share development. Social media platforms allow the advertising of the websites of individuals or organizations on a larger scale than most other advertising media. Advertisers are able to build brand acquaintance among users by putting up posts and updates on brand pages, which get shared among their networks. Regular updates enhance brand visibility and help to acquire new customers as well as increase familiarity among existing customers. The COVID-19 pandemic has had a significant influence on social media usage.
Moreover, to avoid the spread of COVID-19, many countries have announced restrictions related to travel, and people have been advised to stay indoors as a part of the lockdown measure. This has increased the time spent on social media platforms in countries such as the US, the UAE, Italy, India, China, Spain, and Germany. Therefore, an increase in the use of social media platforms will drive the demand for digital retail marketing in these countries and thereby influence the overall growth during the market growth and forecasting period.
Significant Market Trends
The growing shift of preference from traditional to digital retail advertising channels will be a major challenge for the global retail marketing market share growth. With the advances in technology, there has been a rapid shift in preference for digital retail advertising from the traditional medium. This is primarily because of the effectiveness offered by digital media in terms of the ability to view posts and advertisements at any point with no location constraints. In addition, marketers are also combining traditional channels with online channels, such as the use of geofencing to send advertising messages to mobile devices within range of a billboard, shelter, or outlet.
Further, some of the major factors influencing the shift from traditional advertising channels to digital channels are increased brand awareness, modernization, enhanced customer experience, and increased product awareness. Essentially, the market will continue to grow during the forecast period.
Security concerns associated with digital platforms is a significant challenge hindering market growth. The growing number of digital data thefts and online frauds has made consumers more reluctant to engage in online transactions, which hinders the growth of the market. Digital platforms offering retail services store customers' personal as well as financial information to optimize the transaction process and serve the customers more efficiently.
However, in many instances, this data has been stolen through cyber-attacks that have caused personal as well as financial damage to the customer. With the growing number of cyberattacks targeted at e-commerce websites, consumers in the market are becoming increasingly reluctant to purchase products from online marketplaces and make online payments. Thus, such factors can become a major challenge for the growth of the market during the forecast period.
The market share growth by the search Ads segment will be significant during the forecast period. Search ads are currently the most popular form of digital retail marketing and will continue to be the dominant marketing segment during the forecast period. The online population in this segment is targeted based on their search criteria and frequently visited sites. Digital retail marketing by search ads has higher conversion rates as advertisements are generated in close relation to consumer requirements, based on their search history.
The search ads segment was valued at USD 62.50 billion in 2018. One of the major factors influencing the search ads market is the rapid growth of e-commerce. The global e-commerce business is growing beyond metropolitan cities and moving to tier-two and tier-three cities. The business is extending to groceries and electronics and has become an integral part of an online shopper's life. Most online visitors only visit e-commerce websites with the intention of making a purchase for now or for the future. Consequently, search ads tend to be more efficient in targeting larger age groups. Such factors will drive the growth of the search ads segment in the global digital retail marketing segment during the forecast period.
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APAC is estimated to contribute 44% to the growth of the global market during the forecast period. The market in APAC is likely to experience the highest growth during the forecast period. The high population density and the rapid penetration of the Internet in the region are the major growth factors for the market. APAC is witnessing a rapid shift from traditional modes of advertising to digital modes. The high urbanization in this region is further increasing the adoption of digital retail marketing. This enables companies to target wider audiences, such as corporate workers and shoppers.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
123 internet Agency - The company offers digital retail marketing services such as digital marketing strategy for companies.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
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The market is thriving amidst the rapid digitalization of the retail industry, driven by informed consumers and advanced digital tools. Transparency, quality, and trust are crucial as retailers aim to provide convenient e-commerce platforms and seamless omnichannel experiences. Personalization is key to understanding shopping patterns and enhancing consumer engagement through search engines, emails, and online stores. Leveraging web analytics and SEO strategies with keywords, product descriptions, and mobile-friendly interfaces improves local visibility and brand identities. Digital marketing techniques such as content marketing, social media campaigns, and virtual reality are enhancing audience reach and driving traffic to digital storefronts.
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Market Scope |
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Report Coverage |
Details |
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Page number |
175 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 36.5% |
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Market Growth 2024-2028 |
USD 1,879.8 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
26.89 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 44% |
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Key countries |
US, China, UK, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
123 Internet Group, Advantage Solutions Inc., AMP Agency, Ascential Plc, BigCommerce Holdings Inc., Daniel J. Edelman Holdings Inc., Fujitsu Ltd., Medallion Retail, Microsoft Corp., Salesforce Inc., Shopify Inc., SocialSEO, Straight North LLC, Stream Companies, Tesco Plc, The Interpublic Group of Companies Inc., Theory House, Unfoldr B.V., Vivendi SE, and WebFX |
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Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Platform
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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