Analysis of the Digital Marketing Industry Development: AI Technology Brings More Market Opportunities
-
In recent years, social marketing methods have developed rapidly, with new media forms such as live streaming and short videos flourishing. The rise of the 'fan economy,' where traffic is king, has also led to rampant traffic fraud, severely affecting and misleading consumer judgment while causing certain economic losses. Data shows that China's digital marketing market size reached 81.82 billion yuan, a year-on-year increase of 25.39%, with an average annual compound growth rate of 22.01%. It is expected that China's digital marketing market size will exceed 100 billion yuan, reaching 100.8 billion yuan.
Digitalization has become an important force in promoting the supply-side structural reform of the cultural and tourism industry. Enhancing innovation capabilities in theory, content, products, technology, and carriers, and promoting the digital, networked, intelligent, and high-quality development of the cultural and tourism industry are key tasks in the new era.
From the perspective of digital collectible platform issuance, with the rapid development of the digital collectibles market, platforms have released a large number of digital collectible products. In May 2022, the top 50 digital collectible platforms issued over 6.8 million digital collectibles, marking the highest issuance volume month. However, as market regulations became stricter, many platforms exited the market, leading to a decrease in digital collectible issuance after July.
AI Technology Brings More Market Opportunities
During the 2023 Two Sessions, the State Council issued the 'Overall Layout Plan for Digital China Construction,' which is of great significance for accelerating the construction of Digital China and promoting the digital economy as a major driver of China's economic development. Additionally, the State Council issued the 'Reform Plan for Party and State Institutions,' establishing the National Data Bureau to coordinate the construction of data infrastructure, integrate and share data resources, and promote the planning and construction of Digital China, the digital economy, and digital society. This will facilitate the rapid development of the data element market, including data ownership, trading, and circulation, and is expected to accelerate the industrialization of data elements and Digital China construction.
This year, domestic and international artificial intelligence developments, represented by ChatGPT, have achieved milestone breakthroughs, sparking significant market reactions. Major internet giants have entered the AI market with high-profile initiatives, competing for dominance. At the application level, more companies are accelerating the development of related products to gain a competitive edge in the AI-driven market.
For digital marketing, advancements and applications of AI technology will further enhance capabilities in advertising, data analysis, and other existing services, strengthening personalized and precision marketing. Breakthroughs in AI-generated content can significantly improve the productivity of advertising materials, helping companies reduce costs and increase efficiency. While there are still technical and legal obstacles and risks to large-scale AI adoption, technological progress undeniably brings more market opportunities.
In recent years, Leo Digital has continuously invested resources to apply new technologies such as big data, AI, and blockchain to various aspects of digital marketing. The company has established a clear technological roadmap in digital asset ownership and conversion (based on blockchain and IPFS technology) and automated machine learning (based on AI and knowledge graphs), helping clients meet development needs in advertising efficiency, content customization, and traffic conversion.
In terms of advertising efficiency, Leo Digital has independently developed digital tools like Titan, Ark, Pangu, and Wanpeng for different media platforms, applied across subsidiaries in the media agency business group to achieve automated ad optimization. These tools improve work efficiency and human productivity while fostering collaboration between creative content and ad optimization, enabling the selection of the best creative materials and delivering innovative solutions for the industry.
Analysis of the Digital Marketing Industry Development
Digital marketing offers many unprecedented competitive advantages: it integrates product descriptions, promotions, customer surveys, advertising, public relations, customer service, and other marketing activities into one-to-one communication, achieving the comprehensive effects pursued by marketing mixes. These activities are not limited by time or geography, combining text, sound, images, and videos in dynamic or static formats, with easy and rapid updates. Consumers can also repeatedly browse and query online.
In recent years, the digital marketing industry has grown rapidly, driven by the digital economy. Traditional marketing was resource-driven, where securing top resources led to industry dominance. Now, it is algorithm-driven or data-driven, making monopolistic positions in digital marketing less likely in the future.
Data shows that 79% of advertisers plan to increase their digital marketing budgets for the coming year, with nearly 30% expecting budget growth of over 30%.
Big data and artificial intelligence are reshaping the digital marketing landscape. With the future proliferation of IoT, the media environment will become increasingly fragmented. However, technological innovation in data and content creation remain the constant driving forces of marketing. For enterprises to achieve quality growth in the future, they must rely on the triple engines of data, intelligence, and content.
In China's digital marketing industry chain, media platforms account for approximately 30%-60% of total revenue. Leading internet media companies like BAT (Baidu, Alibaba, Tencent) possess strong bargaining power and typically secure revenue shares close to the upper limit, while smaller media platforms have relatively weaker negotiating power and lower revenue shares. Advertising budgets first flow to intermediary agencies, which then settle accounts with media platforms. The average gross profit margin for digital marketing intermediaries fluctuates between 20%-25%.
China's Digital Marketing Industry Scale
In recent years, the digital marketing industry has experienced rapid growth, driven by the digital economy. China's digital marketing market reached approximately 387.1 billion yuan, representing a 23% year-on-year increase.
Data shows that China's digital marketing market size was 81.82 billion yuan, with 25.39% year-on-year growth and a compound annual growth rate of 22.01%. It is projected to exceed 100 billion yuan, reaching 100.8 billion yuan. The pharmaceutical digital marketing sector has also grown steadily, with its market size increasing to 1.57 billion yuan (up 280 million yuan year-on-year, +21.71%), and is expected to surpass 2.5 billion yuan.
In this competitive market, timely and effective decision-making is crucial for enterprises and investors. Industry reports analyze China's digital marketing landscape, including current developments, competitive dynamics, supply-demand relationships, and opportunities/challenges from policy, economic, social, and technological perspectives. The reports also examine key players' operations and provide professional forecasts about future industry trends.