What are the Industry Scale and Market Characteristics of Digital Marketing in China?

Digital marketing refers to the use of digital technology and digital media such as the Internet to conduct all-round marketing activities through multi-channel, multi-format and multi-dimensional methods. Its goal is to increase brand exposure and popularity, increase sales and revenue. With the continuous development of the Internet and digital technology, digital marketing will become the mainstream of future marketing. More and more companies will adopt digital marketing strategies, innovate digital marketing models, improve the effectiveness of digital marketing, and promote the development and transformation of digital marketing with the help of the continuous advancement of technologies such as big data and artificial intelligence. Digital marketing was originally a relatively extensive stage of portal website advertising, blogs, email push, search marketing, etc., and gradually developed into personalized, digital, information-based, and precise marketing methods, represented by online social media marketing, content marketing, and short video marketing.

The scale of China's digital marketing industry

As an important marketing method, the scale of digital marketing industry is showing a rising trend. Data shows that the market scale of China's digital marketing will reach more than RMB 2 trillion in 2022, and is expected to reach RMB 3.7 trillion in 2027. At the same time, it is expected that the market scale will maintain an upward trend in the next five years, with the growth rate remaining at around 9%. The data statistics divide China's digital marketing into three sub-industries: fast-moving consumer goods digital marketing, durable goods digital marketing, and other products and services digital marketing, and calculate their market scale.

The changes in the scale of China's digital marketing industry are mainly driven by three factors

① With the popularization of Internet and mobile Internet applications, consumers' shopping, entertainment, communication and other behaviors can be realized in a digital environment, and the market demand for digital marketing has also increased accordingly.

② The application of new technologies such as big data, artificial intelligence, and cloud computing has provided more technical support for digital marketing and improved the product-effect ratio of digital marketing.

③ The impact of the epidemic has accelerated the digital transformation and online marketing of enterprises, and digital marketing has therefore been further developed.

The scale of the digital marketing industry in the future will show the following three trends

① With the acceleration of digital transformation, enterprises will further invest in the field of digital marketing, driving the growth of the scale of the digital marketing industry.

② The application of new technologies will continue to strengthen, and the continuous innovation of technologies such as artificial intelligence, big data, and blockchain will make digital marketing more intelligent and precise.

③ Strengthening data privacy protection and supervision will reshape the market size and competition landscape of digital marketing, emphasize corporate social responsibility and compliance operations, and promote a more rational and sustainable industry scale for digital marketing. Therefore, digital marketing companies should continuously improve the quality of digital marketing services and technological innovation, seize the opportunity of industry scale expansion, and achieve sustainable development of the company.

Digital Marketing Industry Classification

According to channel classification, digital marketing can be divided into search engine marketing, social media marketing, email marketing, content marketing, video marketing and other categories. Different digital marketing methods have their own characteristics and applicable scenarios. The choice of which method should be based on comprehensive considerations of brand characteristics, target users, budget and other factors.

Search engine marketing is one of the most representative digital marketing methods. It is a way to attract target users to click on the website by placing advertisements for keywords in search engines. Common search engine marketing includes Baidu bidding, Google AdWords, etc. This marketing method is characterized by high accuracy, and can place advertisements for specific users to improve the conversion rate of advertisements.

Social media marketing is the fastest growing form of digital marketing in recent years, including WeChat marketing, Weibo marketing, Tik Tok marketing, etc. Social media marketing is characterized by fast dissemination and a wide audience, and can increase brand exposure through sharing, liking, commenting, etc.

Email marketing is a way to achieve marketing goals by sending emails to users. This marketing method can be pushed in a targeted manner, but it is also easy for users to regard it as spam and thus block it.

Content marketing is to attract target users and increase brand awareness and recognition by providing valuable content. Common content marketing includes blog marketing, WeChat public account marketing, etc. This method requires a certain amount of time and resources, but it can establish a long-term relationship between the brand and the user.

Video marketing is a digital marketing method that has developed rapidly in recent years. It conveys brand information to users through videos. Common video marketing methods include short videos and live broadcasts. This method is characterized by strong visibility and good communication effects, but it requires certain production costs.

Digital Marketing Industry Characteristics

Digital marketing is a marketing method that uses digital technology and the Internet platform to promote and advertise goods and services. Among them, the characteristics of digital marketing mainly include four aspects: mobility, interactivity, precision and intelligence. Among them, mobility represents that digital marketing has shifted from the traditional PC end to the mobile end, becoming a marketing method that can be carried out anytime and anywhere; interactivity emphasizes the two-way interaction between users and enterprises in the marketing process, which is more targeted and influential compared to the one-way push of the traditional marketing model; precision refers to the use of big data analysis and positioning technology to achieve precise marketing for the target audience, improve marketing effects and conversion rates; intelligence represents that digital marketing is moving towards autonomous learning and personalized recommendations, and is increasingly inclined to use technologies such as artificial intelligence and machine learning to improve marketing efficiency and accuracy.

1. Mobility

4G and 5G network coverage is increasing. At present, mobile devices have been widely used at home and abroad, and the coverage of 4G and 5G networks is increasing, resulting in many new network platforms and programs, such as Kuaishou, Douyin, Xiaohongshu, Taobao, WeChat, etc. The number of Internet users is very large. Through in-depth analysis of user data information, reasonable establishment of digital marketing plans and strategies, and combining different user groups to deliver differentiated and targeted advertising content, it can reduce unnecessary capital expenditures and achieve relatively ideal marketing results.

2. Interactive

Deepen the communication, exchange and interaction between enterprises and customers. Digital marketing relies on Internet technology and platforms. The interactive nature of the Internet itself enables digital marketing to deepen the communication, exchange and interaction between enterprises and customers. Enterprises can use the interactive nature of the Internet to guide customers to participate in product research and development and decision-making, so that customers have the opportunity to participate in product design and marketing, better meet users' customized needs, and improve product marketing effects and customer satisfaction. In addition, digital marketing that embodies interactive characteristics can enable enterprises to gain a deep understanding of customer needs and product information, and improve the scientificity and rationality of corporate marketing decisions.

3. Precision

Targeted digital marketing strategy. From the perspective of the Internet, the precision of digital marketing is mainly reflected in the customer data analysis level, and the customer base is segmented based on the analysis results to form a targeted digital marketing strategy.

4. Intelligence

Intelligent data information collection and analysis report formation. Since the digital marketing customer base is very large, a huge amount of data information needs to be collected and processed. In the digital marketing process, data information collection and analysis report formation, the information content required for this series of activities can all be obtained intelligently through the Internet platform, providing many conveniences for marketing work.