Key trends highlighted in the report include:
- Digital marketing agency services thrive in a promising market poised for solid growth: With a projected CAGR of 17.3%, the global digital advertising market is expected to reach $697 billion by 2030, driven by the rising use of smartphones, e-commerce, and social media platforms as well as businesses increasingly leverage digital marketing to boost brand awareness and drive revenue
- Generative AI enhances the content production lifecycle without replacing it entirely. AI tools like ChatGPT are revolutionizing the content creation process, particularly in generating efficient and high-quality marketing content. Organic content remains essential as major platforms like Google prioritize authenticity. Scripted utilizes AI efficiencies to produce trustworthy content that meets these standards.
- TikTok optimized its ad tools for marketers, delivering highest ROI: Amidst competitors’ stagnant or declining ad sales, TikTok experienced significant advertising growth in 2022. In order to capitalize on the rising demand among marketers, TikTok has introduced shoppable ads, improved their ads dashboard usability, expanded targeting options, but regulatory concerns still persist for US advertisers.
- Brands and agencies seek tools utilizing rich, first-party data: As consumer privacy rules tighten, Google Ads is sunsetting its “Similar Audiences” targeting solution from May 2023. Media buyers face the challenge of finding effective alternatives. Solutions like Dstillery offer a more precise approach, scoring individual devices to create custom audiences for each brand’s existing customers.
- Surging M&A: M&A deal volume increased by ~18% in 2022 with 252 deals as compared to 214 deals in 2021. Capability additions are expected to drive M&A appetite, particularly in content and influencer marketing space in late 2023 and 2024.
To provide a deeper understanding of the topic, the report includes key disruptors, industry landscape and notable M&A transactions activity (including major deals within the last 24 months). The report also examines the emerging trends and future directions of Generative AI in the Digital Marketing agencies space.