Social media content marketing is expected to reach US $ 13.8 billion in 2021, possibly due to higher daily consumption of digital media in the wake of the global pandemic and a new small economy jobs.
Digital marketing technologies have entered a major historical inflection point. The past few years have seen an explosive growth in social media applications, with platforms such as Facebook and YouTube amassing over a billion users each.
With an estimated global population of 7.7 billion and over 3.5 billion active social media users, one in three people around the world can be found on social media. Digital media consumption soared and the shift from traditional media to digital media has led to more US $ 291 billion spent on digital advertising in 2020. As brands rush to meet consumers where they are, social media content marketing software has seen billions of dollars once allocated to traditional advertising. Especially when disrupting the traditional creative supply chain, with clear efficiencies over time for production and distribution, development cost and overall ROI
Marketing technology, also known as martech, has become a staple in digital marketing. In 2019, the Global Digital Marketing Software Industry was valued at US $ 43.8 billion. The market is expected to grow with a compound annual growth rate (CAGR) of 17.4% between 2020 and 2027. According to the last Gartner CMO Spending Survey, digital channels accounted for nearly 80% of marketing budgets in 2020, with CMOs spending 22% on digital advertising – including display, video and social media ads, as well as paid search – while an additional 59% are allocated to website, SEO and mobile marketing. Martech currently accounts for the largest proportion of marketing spend, compared to traditional media and internal workforce.
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DGTL Fund (TSXV: DGTL) is a venture capital asset management firm focused on acquiring and accelerating transformative and disruptive (martech / adtech) social media, marketing and advertising technologies (martech / adtech) artificial intelligence (AI).
Martech targets a wide range of marketing tasks, including advertising, analytics, content management, and customer relationship management. Innovations such as automation and artificial intelligence can help reduce the number of man hours required to execute a marketing strategy while producing actionable insights into the return on investment of a company’s marketing efforts. These days, marketing teams are focusing on a new way to connect with potential audiences: content creators and online web publishers who position brands on recommendation, versus suggestion.
The rise of influencer marketing
One area of digital marketing and advertising that has grown exponentially in recent years is social media content management software. Ten years ago, social media marketing was limited to celebrities and a handful of dedicated bloggers. Today, influencer marketing has grown to include a number of social media activities, but primarily involves recommendations and product mentions from influencers or individuals with an established media presence. social workers who are often seen as experts in their niche. Recommendations on social media act as a form of social proof for potential customers.
Social media content marketing is expected to US $ 13.8 billion in 2021, a considerable increase from US $ 1.7 billion in 2016 and a considerable jump from US $ 9.7 billion in 2020, possibly due to higher daily digital media consumption following the global pandemic and a new economy of odd jobs where e-commerce drives consumer spending. According to a report According to eMarketer, the pandemic has accelerated trends that were already underway, including a consumer preference for “unfiltered” content or content seen as more organic and relevant.
The rise of apps like TikTok and Instagram has contributed to the popularity of “everyday influencers”. Over the past year, consumers have spent more time at home and on social media, where they interact with the content creators. Influencers provide a simple, cost-effective way for brands to reach target audiences at a time when large-scale production can be difficult.
According to data from Mediakix, the influencer marketing industry is on its way to worth up to US $ 15 billion by 2022. Influencer marketing is now a must-have marketing strategy, with brands ranking individual influencers based on their reach (overall engagement) and niche (engagement with a brand’s target audience). While each social media software platform offers its own breed of content editors, Instagram is the gold standard, with nearly 79% of brands prioritize the app for influencer marketing campaigns. Other marketing centers include Facebook, YouTube, Twitter, and LinkedIn. Tiktok is now the most downloaded app in the world and on track to reach over 1 billion users.
A study of Tomoson found that influencer marketing generates a return on investment of $ 6.50 for every dollar spent. With today’s consumers cutting out the noise of traditional advertising, roughly 40 percent of survey respondents said they bought a product online after seeing it used by an influencer on YouTube, Instagram or Twitter. Influencer campaigns have evolved to include tactical solutions like coupon codes, affiliate marketing, contests, giveaways, and other ways to build brand awareness and drive sales. Upcoming trends include a shift from traditional video ads to video content, which can include product presentation campaigns, exclusive reviews from key influencers, unboxing videos, and similar types of organic content.
Main actors to watch
As consumers spend more time online, paid promotions and influencer partnerships have become essential for brands that want to be seen and stay relevant. Clearly, the digital landscape is changing rapidly and many brands are now relying on influencer marketing platforms to manage all aspects of their social media campaigns.
Companies such as DGTL Holdings (TSXV: DGTL) specialize in helping brands and agencies to optimize their digital marketing efforts by acquiring and advancing emerging technologies in digital media, martech and adtech, powered by AI. The #HASHOFF Company’s flagship solution is a scalable, self-service software as a service (SaaS) platform that enables marketers to identify and recruit freelance creatives for content creation, sponsorship contracts, experiential activations and more. The enterprise-level CMS platform enables marketing teams to identify the best influencers to represent their brand based on context signals and machine learning. At Super Bowl XXI, #HASHOFF activated micro-influencers (influencers with a relatively low number of followers, but who attracted a very engaged audience) to attract more one million brand engagements.
Marketing technology encompasses more than content management and social media marketing. The COVID-19 pandemic has triggered a rapid digital transformation for many businesses, with martech platforms such as Zapier, Clearbit, MadKudu, and Segment among the fastest growing software companies around. IZEA Worldwide (Nasdaq: IZEA) was one of the first of its kind to go public in the sub-sector, and now trades at an average price of 10 to 15 times compared to sales.
As brands continue to recognize the value offered by social media CMS software in terms of reach, impact and return on investment, the now multi-billion dollar influencer marketing industry remains positioned for explosive growth. Investors should pay special attention to innovative technology platforms that help companies navigate social media, partnerships, and major brand clients.
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