Evolving Role Of Digital Marketing In A Data First World

Prasun Kumar. Dec 13, 2022

If the last 200 years were about exploring ‘why?’ leading to inventions, next 200 years will be about analysing ‘what?’ leading to inventions – goes a famous prediction. We are truly and rapidly entering a Data First World. With 2.5 Quintillion bytes of data being generated every day (that's 2.5 followed by a staggering 18 zeros!), human civilisation is going through a massive transformative phase where the binary codes will be able to predict everything, right from our behaviour, to illness, to needs, to thoughts, et al.

Marketing as a science has evolved greatly over the last 5 decades or so, and most rapidly over the last couple of decades. The advent of computer and internet era brought unprecedented opportunities for marketers. The availability of rich consumer data meant that marketers were now able to analyse and understand decision-making and buying behaviours like never before, and the arrival of digital tools made all of this possible almost in real time. Thus was born the practice of digital marketing, which has been growing at an astonishing speed, delivering immense value to brands and marketers.

The Current State of Digital Marketing

The worldwide marketing spend on digital marketing is estimated to be around 680 billion USD in 2023. Just to put this into perspective, this is more than the annual GDP of more than 200 countries of the world. Digital marketing, over a period of time, has evolved into a multi-disciplinary practice, with social media marketing (FB, Twitter etc.), performance marketing (Pay-Per-Click: PPC advertising, FB etc.), videos (TikTok, Youtube etc.), messages (WhatsApp, chatbots etc.), podcasts, emails, blogs, influencer marketing, affiliates, and many more. To illustrate the reach of digital marketing, there are about 3.5 billion social media users; nearly 45 per cent of the global population. With the largest swath of young population (Millennials and GenZ) leading a mostly digital life, digital marketing is an indispensable tool for brands targeting these consumer cohorts.

Over the last decade or so, there have been many catalysts leading the evolution of digital marketing. Some key catalysts have been -

1. Arrival of Search Engines

Google today is a noun, verb, adjective, everything. Such has been the social impact of search engines, that knowledge and information have truly got democratised in distribution for the first time in human history. This has brought rise to what is known as Search Engine Marketing (SEM), Search Engine Optimisation (SEO), and paid advertising.

2. The Social Media Revolution

As mentioned above, nearly 45 per cent of global population is hooked on to it. Nothing more needs to be said. This is probably the single most powerful behavioural phenomena in the human history. This also enables brands to reach global audiences via paid ads targeted towards general or specific audiences, work with influencers who market products to followers, and more.

3. Smartphone led Mobile-First Marketing

As per an estimate, there were more than 6 billion smartphones owners in the world by 2020. By November 2022, more than 60 per cent of all web traffic came through mobile phones. This has enabled marketing messages to reach out to consumers anytime, anywhere.

4. Consumer Data led Real time targeted Campaigns

Another major milestone has been the usage of real time data for creating targeted marketing campaigns. CRM tools, for example, have let brands work iteratively based on data from performance analytics. This has made it easier to predict consumers’ buying behaviour, sharpen audience targeting, and increase overall customer satisfaction, all in real time. This also makes it possible to create better business impact models for accurately measuring marketing performance.

5. Interactive & Immersive Content

Rich media & interactive content formats such as games, fun social media contests, immersive app experiences, and more not only attract audiences but also provide a way to sustain their attention over the long-term. These formats can also attract more traffic as their results generally have a high chance of being extremely relevant at first attempt. This has led to better experience deliveries, resulting in higher consumer responses.

The future of digital marketing & its evolution from here on

The ever developing & changing technology landscape, and evolving tools & trends constantly churn and help evolve the practice of digital marketing. While it is already an important part of marketing mix, and is growing faster than any other marketing lever, the future looks all the more promising. Digital marketing will move from being an important part of a brand’s strategy, to becoming the central powerhouse of driving & delivering business growth. This transformation will be aided by multiple emerging technologies & applications such as -

1. AI / ML

The advancement of Artificial Intelligence and Machine Learning technologies are opening up new opportunities for marketers. AI and ML help to quickly make decisions, change marketing tactics, switch between target audiences, and adjust communication messages during campaigns, according to changes in consumer sentiments. This gives digital marketing tremendous advantages over traditional marketing channels, where placement has to be planned beforehand.

2. Voice-enabled Everything

Smart speakers and “assistants” have been around for a while, and this hands-free technology will become an increasingly standard way that users choose to interact with. It’s estimated that over half of all search queries are powered by voice search already. With this growth in voice search powered smart devices, will come more opportunities to market to the people that own them. For example, targeted Alexa ads are already in the pipeline and the other devices will be sure to follow. From searching, to transacting using voice based applications seamlessly would become the norm, and digital marketing will drive this even more.

3. The potential of Metaverse

If there is one thing that caused a massive stir in 2022, it is the rise of Metaverse. An expected market of more than 800 billion USD over the next few years, and a massive push by companies like Facebook (it rebranded its parent company to Meta), Metaverse is currently the single most talked about digital marketing opportunity for future. A self-immersive, self-sustaining digital eco system is the perfect market of Gen Z and future generation of consumers. Built on Web 3.0, and combining the unlimited potential of virtual reality, blockchains, etc., Metaverse is the most anticipated next step in the evolution of internet.

4. The growth of Creator Economy

The emergence of content creator funds on TikTok, YouTube, and Twitch means that there is an incentive for creators to put time into creating content that a brand could then take advantage of. “30 per cent of 18 to 24-year-olds and 40 per cent of 25 to 34-year-olds consider themselves content creators”, HubSpot’s 2022 State of Consumer Trends reports. This will have a huge impact on digital marketing strategies, and brands will increasingly collaborate with micro influencers for generating immersive digital content to attract & acquire consumers.

5. The need for Conversational Marketing

Brands will no longer afford to remain ‘at a hand’s distance’. Consumers will increasingly expect brands to be a part of them, and hence, if you want to attract customers, you have to talk to them like you are having a real conversation. Whether it is through chatbots or instant messaging, more companies are talking to customers just like they would to a friend. These human-centred interactions are more appealing than generic introductions, where it feels like someone is reading from a script. Marketing is becoming more conversational and personalised, and digital marketing will take advantage of this trend to engage potential buyers in a new way.

In conclusion, as we look ahead and try to predict the future, based on current trends, the evolving role of digital marketing will increasingly be at the centre, as well as at the forefront of business growth strategies. Expect more and newer technology to come into play, reshaping & transforming the way digital marketing is done today.