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The digital marketing industry is currently experiencing robust growth, driven by increasing digitalization across all sectors. Key trends include the rise of AI in advertising, programmatic media buying, and the growing importance of first-party data. Agencies are focusing on integrating brand-building with performance outcomes, emphasizing ROI and accountability.
Total Assets Under Management (AUM)
Digital Advertising Spend in United States
~Approximately $280 billion
(13-15% CAGR)
- Increased investment in digital channels.
- Shift from traditional to digital advertising.
- Growth in e-commerce and mobile advertising.
Approximately $500 billion
Generative AI can automate and personalize content creation at scale, from ad copy and social media posts to blog articles and video scripts.
Advanced AI models can predict campaign performance, optimize budget allocation in real-time, and identify future trends to maximize ROI.
PETs like federated learning and differential privacy enable data analysis and advertising personalization while preserving user privacy, crucial in a cookieless future.
The CPRA, effective January 1, 2023, expands upon the CCPA, granting consumers more rights over their personal data, including the right to correct inaccurate data and limit the use and disclosure of sensitive personal information.
This policy mandates stricter data handling practices for digital marketing agencies, requiring enhanced transparency, consent mechanisms, and data subject access request (DSAR) compliance.
The FTC continues to actively enforce consumer protection laws, particularly regarding deceptive claims, endorsements, and native advertising in digital marketing, with increasing scrutiny on influencer marketing and AI-generated content.
Agencies must ensure all advertising claims are truthful, substantiated, and clearly disclosed, increasing the need for robust compliance reviews and ethical marketing practices.
While not yet federal law, several states are proposing legislation (e.g., California's Algorithmic Accountability Act) to regulate the use of AI, focusing on transparency, bias detection, and accountability in automated decision-making systems.
Potential regulations could require digital marketing agencies utilizing AI for targeting or optimization to disclose AI models, conduct bias audits, and ensure fairness in algorithmic outcomes, impacting AI tool development and implementation.
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