Starting your own digital marketing agency can be a very profitable endeavor, but it is not without its risks. In order to help you make an informed decision, in this article we will explore the digital marketing agency industry statistics, market trends, and future outlook. This will give you a better understanding of what you can expect if you decide to start your own digital marketing agency.
Industry Statistics
The digital marketing agency industry is growing rapidly. In 2018, the industry was worth an estimated $65 billion and is projected to grow to $88 billion by 2023 at a compound annual growth rate (CAGR) of 6% (Forbes). The United States is the largest market for digital marketing agencies, with an estimated market size of $39 billion in 2018. This is followed by the United Kingdom, which has an estimated market size of $6 billion.
There are two main types of digital marketing agencies: full-service and specialized. Full-service digital marketing agencies offer a wide range of services, such as website design and development, SEO, social media marketing, email marketing, and online advertising. Specialized digital marketing agencies focus on one specific area of digital marketing, such as SEO or social media marketing.
The digital marketing agency industry is fragmented, with the top four companies accounting for less than 20% of the market share. The top four companies in the digital marketing agency industry are WPP plc, Dentsu Inc., Omnicom Group, and Publicis Groupe SA.
Market Trends
The digital marketing agency industry is being driven by the growth of digital marketing spending by businesses of all sizes. Businesses are increasingly recognizing the importance of digital marketing in today’s world. In order to stay competitive, businesses are investing more in digital marketing agencies to help them with their digital marketing needs.
Another trend that is driving the digital marketing agency industry is the shift from traditional advertising to digital advertising. This shift is being spearheaded by the fact that digital advertising is more effective and efficient than traditional advertising. In addition, digital advertising is more targeted and can be tailored to the specific needs of the advertiser.
One trend that is expected to have a negative impact on the digital marketing agency industry is the increasing use of in-house digital marketing teams by businesses. This is because businesses are realizing that they can save money by doing digital marketing in-house, rather than hiring an agency.
Future Outlook
The digital marketing agency industry is projected to continue to grow at a rapid pace over the next five years. This growth is being driven by the continued increase in digital marketing spending by businesses and the shift from traditional advertising to digital advertising. In addition, the industry is expected to benefit from the continued growth of the digital economy and the increasing use of digital marketing by small businesses.
The digital marketing agency industry is projected to grow at a CAGR of 6.1% from 2018 to 2023. This growth is being driven by the continued increase in digital marketing spending by businesses and the shift from traditional advertising to digital advertising. In addition, the industry is expected to benefit from the continued growth of the digital economy and the increasing use of digital marketing by small businesses.
Conclusion
The digital marketing agency industry is a rapidly growing industry with a bright future. If you are thinking about starting your own digital marketing agency, now is a great time to do so. There is a growing demand for digital marketing services, and the industry is expected to continue to grow at a rapid pace over the next five years.