Digital marketing is the future of marketing as it involves marketing and advertising products and services through online or digital platforms. In fact, in 2021, the UK is expected to spend more than £129 billion on digital ads.
Digital marketing is undeniably growing in today's internet era. But, in the coming years, how much will digital marketing expand? What are the most popular digital marketing channels? What are the effects of social media on digital marketing?
We've compiled the most up-to-date information in this Digital Marketing Statistics UK blog so you can get a clear picture of the UK's digital marketing industry today.
It's no secret that digital marketing is becoming more popular. Spending on digital marketing has considerably surpassed traditional or offline marketing over the past decade.
In 2020, offline marketing accounted for only 10.5% of the overall marketing spending in the United Kingdom. Furthermore, only 9.9% of respondents said they split their marketing budget evenly between online and offline marketing channels, while 7.6% said they were unsure and still figuring out their marketing strategy.
In the United Kingdom, digital marketing has far overtaken traditional marketing. Each year, the total amount spent on digital marketing increases. According to research published in January 2021, the growth rate has been around 10% every year. According to digital marketing statistics, this number will rise to 18.7% between 2021 and 2022. Only for-profit companies were included in this research.
The modern marketer has access to a variety of marketing channels. So, what other types of digital marketing are there? Social media, content marketing, ads, print, TV, and radio are among the most popular options. Social media is the most effective of these. Social media marketing's rise has been well chronicled.
Traditional forms of marketing, such as tv and radio, lagged far behind, with only 2.2% of marketers claiming it as their preferred medium.
As previously stated, digital marketing spending is increasing. Within digital marketing, social media marketing is predicted to see the highest expenditure, followed by Google Ads. 18.75% of marketers said they would increase their Google Ads spending. Content marketing and email marketing are two more popular channels that have seen an increase in spending.
Video is, without a doubt, the most popular marketing media among text, audio, and video. Video has a stronger emotional connection with consumers than text or audio. Both B2C and B2B markets benefit from video marketing. Facebook, Instagram, and YouTube are the most popular video marketing platforms.
The days of marketers avoiding live marketing are long gone. Marketers are getting on board because customers and clients respond better to live content. As a result, most video marketers use live videos to engage their audiences and establish brand authority. Live video promotion has become possible through platforms like YouTube.
Paid search advertising had the highest spending among all forms of digital advertising in the UK ad industry. Paid search advertising outperformed traditional media such as television and print. Although overall spending on digital advertising has increased, spending on online publication ads has decreased significantly. In 2018, the UK spent only £718 million on magazine advertising, and this trend is expected to decline further.
Facebook dominates the whole digital marketing industry. Over the past decade, Facebook's advertising revenue has been steadily increasing. In 2017, Facebook made roughly £1.9 billion in revenue. From 2019 onwards, this figure was predicted to rise. Because of its large number of daily active users, platforms like Facebook hold a significant share of internet advertising revenue. Due to their targeted nature, Facebook advertising is also more effective.
COVID-19 hurt the UK economy in general, and digital marketing investment was no exception. In comparison to the previous year, digital marketing spending in the UK decreased in 2020. Search ads have declined by 12.1%, while online magazine ads have dropped by 25.1%. It's worth noting, though, that overall digital marketing expenditures declined at a slower rate than traditional marketing spending.
Over the past decade, email marketing has become increasingly popular. Because of the comparatively high returns on investment, most marketers are turning to email marketing. Email marketing is frequently used in combination with other types of digital marketing, such as content marketing and digital advertising. Email marketing is the most effective kind of digital marketing, according to 73% of in-house marketers.
Accenture Interactive is the market leader in digital marketing in the United Kingdom, with annual revenue of £370.5 million in 2019, the most among all UK-based digital marketing agencies. IBM iX and Atos Digital Services came in second and third, respectively. They each made £282 million and £251 million in earnings, respectively.
The figure was calculated by subtracting the number of companies that increased their marketing budget by the number of companies that decreased their marketing budget. The spread of the Coronavirus, which has impacted practically all types of corporate activities, is to blame for the reduced marketing budget. As the economy recovers from the effects of the virus, this statistic is predicted to be positive in 2022 and beyond.
This research was carried out in 2019 to determine which channels in the UK saw the most digital marketing spending. According to the report, social media marketing was the most popular channel, followed by search advertising (Google).
The top ten marketing agencies in the UK grew at a much faster rate than the rest of the industry. The top 10 marketing agencies earned a total of £185 million in 2019. Other digital marketing agencies, on the other hand, only grew by roughly 37% during the same period. The top ten digital marketing agencies earned 12 times more than the other agencies on average.
In 2019, content marketing formed a considerable portion of marketing budgets across the UK. Text, audio, and video-based content are all used in content marketing. Furthermore, in terms of average digital marketing expenditure, content marketing lagged only in social media.
YouTube has a huge viewership in the United Kingdom, making it an attractive advertising option for almost any company. According to market trends, Facebook's popularity was closely followed by YouTube, with a penetration rate of 73%. YouTube, Facebook, WhatsApp, Instagram, Twitter, LinkedIn, Snapchat, Pinterest, TikTok, and other social media sites have the highest penetration rates in the UK.
According to advertising statistics, social media advertising has become the most popular place to spend money on digital marketing. When compared to traditional advertising, social media advertising offers a wide range of advantages. Sophisticated targeting choices, variable budgets, search intent, high user penetration, and more are some of the benefits. The spread of the Coronavirus harms social media advertising, but it is likely to recover rapidly.
Email marketing continues to be the most cost-effective digital marketing strategy. However, in 2020, the average return on investment for email marketing will be lower than in 2019. In 2019, a UK email marketer can expect a return on investment of £42.2 on average. Remember, return on investment varies widely depending on the industry and the quality of the email marketing campaign.
In the United Kingdom, email marketing has risen by leaps and bounds. More than half of digital marketing companies in the UK are also involved in email campaigns as part of their marketing strategy. Approximately 7% of respondents to this study claimed that email marketing accounted for more than 80% of their marketing budgets. As a result, email marketing is a prevalent form of digital marketing for companies in the United Kingdom.
The most common reason UK customers subscribe to brand mailing lists is to take advantage of exclusive discounts and offers available only through these emails. The second most important reason is, in comparison to other kinds of marketing, brand emails felt more personalized.
More than half of the emails that were sent to UK customers were uninteresting to them. According to marketing statistics, only 13% of people were interested in more than half of the emails they received.
The number of emails opened versus the number of emails sent is referred to as the email open rate. Marketers discovered that extensive testing of different email content can enhance the open rate of emails. Segmenting email lists was another popular method of increasing open rates.
The click-through rate refers to the percentage of people who click on a link in an email compared to the total number of people who received the email. The click-through rate is a crucial parameter for determining the effectiveness of an email campaign.
This statistic exemplifies why email marketing is so successful. Consumers prefer to hear from well-known brands. Once email marketers have gotten their foot in the door, they can keep customers up-to-date on all relevant product and service updates, such as offers, discounts, or a new launch.
Email campaigns are the future of digital marketing. Consumers check their emails regularly, which is one of the reasons why email marketing is so effective. That is why email communication is beneficial for companies. So, email marketing has quickly surpassed direct mail marketing as the preferred method of communicating with customers.
Email marketing is used by marketers for a variety of purposes, the most prevalent of which is to offer discounts. Providing advice and information, advance notice for new products or services, email receipts, conducting competitions, confirmations or updates, and more are all reasons to use email marketing.
What is the unsubscribe-to-open rate (UTOR)? It's usually the percentage of people that unsubscribe after receiving an email. It is better if the UTOR rate is as low as possible. A UTOR rate of less than 2% is considered desirable. The marketing team is providing irrelevant information, or their targeting is flawed, which is the source of a high UTOR rate. Usually, it's a mix of the two.
Mobile marketing is an innovative marketing method and one of the most recent digital marketing trends. Because smartphone users are so prevalent these days, it is a highly successful UK marketing channel within the marketing industry. There are several criteria for determining the performance of a mobile marketing campaign, the most essential of which is the conversion rate.
We already noted that social media is the most vital channel for digital marketing in this Digital Marketing Statistics UK blog. Furthermore, it has been shown that social media is the most pivotal tool for mobile digital marketing. As a result, because most people use their cell phones to access social media, the expansion of mobile marketing is inevitable, proving to be a highly effective marketing strategy.
Digital marketing in the United Kingdom is undoubtedly on the rise, while traditional forms of marketing are waning. Effective targeting, growing audience size, relative cost-effectiveness, and other factors all contribute to the growth of digital marketing. If you're not one of the 68% of UK businesses that couldn't survive without SEO, then it's time to learn the basics.
Digital Piloto, November 24, 2021
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