The digital marketing ad spend has been steadily growing year over year, with 2021 looking to be even more crucial than the previous year.

Last year, the total ad spend in the United States totaled almost $330 billion, which was a drop of about 5.5% – the first dip in ad spends in over a decade. While many point to this number to show that advertising was not as effective, one has to drill down into the statistics to see why the ad spend was lower. The majority of the decreased ad spend in 2020 came from traditional media, such as television, radio, and print. At the same time, the ad spend in the digital marketing space for 2020 grew by 3.5% which made up roughly 54% of the total ad spend in the United States. (Forbes, Jan. 2021).

What this shows is that the rise of e-commerce, along with the societal shift to consuming digital media over traditional sources, has made the digital marketing space ideal for businesses to get their brands, products, and services in front of targeted audiences. Even accounting for the pandemic, the YoY growth in digital ad spends from businesses in the U.S. was trending for years prior to 2020.

Where Digital Marketing is Headed in 2021

If 2020 impacted digital marketing in any way, it was to inform businesses of all types that there is room in the online marketplace. We saw home businesses, small businesses on Main Street, and large companies that previously relied on foot traffic all embrace e-commerce on some level to remain competitive and even branch out into new markets. The overall digital marketing spend for 2021 is projected to increase by 9.6% for a total $136.6 billion. That means 57.6% of all ad budgets will be used for digital marketing, overtaking traditional media.

The Advantages of Digital Marketing

Businesses are realizing the benefits of using digital marketing over traditional ads. For one, the overall cost is lower per campaign, with a much better ROI. Digital marketing campaigns receive much higher engagement and can be customized to target specific demographics, which is something that traditional ads cannot offer. While print, TV, and radio ads can be hit or miss, digital marketing can reach audiences on a number of levels simultaneously, such as e-mail, social media, blog posts, video, and more. At Outpace Digital Marketing, we are committed to giving businesses a competitive edge in the digital marketplace. Our team creates customized solutions with quantifiable results to propel our clients toward their goals. Reach out to our office today and make 2021 a record-breaking year for your business.