The number of stores is growing. Tariffs are rising
But the experience is more difficult. – In the last two years, we have seen an increase in stores, which means more competition, more advertisers in the market, higher tariffs for “clicks” of advertising. Therefore, better optimization is needed, for example, using machine learning-based tools that allow real-time optimization based on large amounts of information from many sources. It is also important to develop an appropriate strategy that analyzes the market, competition, trends and target group, said Robert Stolarczyk, president of PromoTraffic, one of Poland’s leading digital marketing agencies for e-commerce and b2c.
– Different customers come to us every day. We work with both big brands that have strong resources in digital marketing and need a strong partner and business in the early stages of development. Both need strong foundations, as well as good strategy, effective resources, and the best tools, but they also need to think using the marketing funnel and user perspective, Stolarczyk adds.
E-commerce is growing, Polish digital agencies are growing
If we look at the annual report of Ofaktywnie.com, it is not surprising that the revenue of the digital marketing industry has increased. Along with the development of e-commerce, this sector is gaining new positions. We are seeing an increase in employment, revenue and more news as agencies have the resources to invest in the future.
– The best agencies pay attention to people, because they are the people who start and end everything. You can have the best tool in the world, but today and for a long time people will have to control it. The role of the marketer and the specialist, for example, PPC, will change, but it will not be unnecessary – concludes Robert Stolarczyk from PromoTraffic.
According to the analysis of Interactive.com, the three agencies can boast the highest dynamics of revenue growth (compared to 2021-2020). Sunrise System has grown to more than 14 million and in 2021 the revenue will be almost 74 million PLN. The Artifact agency from Wrocław recorded an increase of more than 10 million (up to almost 30 million PLN). Also on the podium is the Krakow-registered agency PromoTraffic, which can boast an income of 23 million PLN in 2021, which is an increase of 7.5 million PLN compared to the previous year.
One step ahead of Internet TV. A longer step
Interest in the digital marketing industry is growing due to the ever-increasing dominance of the Internet in the advertising market. The trend has been clear for years. The global advertising market is taking a decisive step towards the Internet. According to Statista, the value of the global advertising market in 2021 will be $ 763.2 billion. By 2026, online advertising spending could exceed $ 1 trillion.
Brands around the world are spending less and less on advertising in traditional media – especially print and radio. While television is still doing well in some countries, there is still progress towards digital advertising, with the network accounting for 60% of global advertising spending. More than 50% of global digital spending is on software-based advertising. Investments from traditional advertising channels move here, the role of which is primarily to create an image, create brand awareness and reach a wider audience. With Programmatica, we can reach not just a group, but a specific user who is interested in our product or service in a fraction of a second. In addition, we have access to premium advertising space or advertising itself, not only in graphic form, but also in video and audio form.
A survey by Interactive.com shows that the Polish advertising market is following global trends, although the advantage of digital marketing over traditional channels is still not great. According to the report, the share of the Internet in the advertising market in the three quarters of 2021 is 43.7%, which is 1.7%. more than television advertising. But a year ago, television was the most preferred means of advertising. Online campaign spending has increased by more than 23 percent. and they are estimated to have exceeded 3.1 billion PLN. that’s a few hundred million more than television advertising.
– In 2021, we overtook Rubicon in Polish advertising. The cost of online advertising was equal to the cost of TV, and then the Internet began to take advantage. There is no doubt that it will increase with each passing month. However, this is not an easy task, because the largest part of the market belongs to Google and Meta, which are trying to monopolize the industry with all their might. However, the key is to get the right message, not where everyone is, but where our customer is – says Robert Stolarczyk of PromoTraffic, and then adds: becoming a specific traffic channel has made it difficult to manage effective ads. area of websites. Gogole has long focused on machine learning and automation. As Promotraffic, we are trying to be a step forward, and even before Google launched the so-called smart PLA campaigns or more automated optimization, Promotraffic is already using external tools to make it possible.
E-commerce and online advertising
Among the most active industries on the Internet are others, the commercial sector 19 percent share. Then come the computer, telecommunications, food and cultural industries (especially music and books). One of the things that drives the online advertising market is definitely the development of e-commerce. It is estimated that about 100,000 online stores will be operational in Poland. According to interactive.com, due to the development of the e-commerce market, the growth of online advertising will be 14% in 2022 and will remain around 10% in subsequent years.
– The last ten or a few months have been a time when new online stores, and especially small ones, have appeared – which is quite natural – only decided to advertise on the Internet. Only large networks that decided to increase their share of e-commerce could afford expensive TV campaigns. In the coming months, the e-commerce and digital marketing industries will go hand in hand. Especially because they have a common buyer – an Internet user – emphasizes the President of the Board of PromoTraffic.