Digital marketing is the application of digital technologies to achieve marketing objectives such as awareness, consideration, conversion, and loyalty across the Internet and the World Wide Web, as well as mobile apps, connected TV, and other digitized media. Standard approaches include Search engine optimization, Search engine marketing, social media marketing, content marketing, email marketing, display and video advertising, influencer collaborations, affiliate programs, and retail media. Foundational overviews and frameworks are provided in academic and practitioner sources, including the widely used textbook by Dave Chaffey and Fiona Ellis‑Chadwick and research syntheses in leading journals. (book://Dave Chaffey|Digital Marketing: Strategy, Implementation and Practice|Pearson|2022; [International Journal of Research in Marketing](journal://International Journal of Research in Marketing|Digital marketing: A framework, review and research agenda|2017)).
History and evolution
- –The commercialization of online advertising began in the mid‑1990s. A landmark moment was the October 1994 HotWired banner purchased by AT&T (“Have you ever clicked your mouse right here? You will”), frequently cited as the first widely recognized web banner ad and a catalyst for web advertising formats and metrics; contemporary accounts document its unusually high early click‑through rate. (
Wired;
The Atlantic). (
wired.com,
theatlantic.com)
- –As search engines, e‑commerce, and social networks scaled in the 2000s–2010s, digital marketing diversified into search, display, programmatic, social, video, and mobile, with data and analytics enabling granular targeting and attribution. Comprehensive reviews map these developments and their implications for firm strategy and touchpoints. (
International Journal of Research in Marketing). (
sciencedirect.com)
Market size and spending patterns
- –In the United States, internet advertising revenue reached $258.6 billion in 2024, up 14.9% year over year, led by search ($102.9B), social ($88.7B), video ($62.1B), and rapid growth in retail media networks ($53.7B). (
IAB/PwC Internet Advertising Revenue Report: Full Year 2024;
TV Tech;
Search Engine Land). (
iab.com,
tvtechnology.com,
searchengineland.com)
- –Global industry outlooks continue to show digital’s dominance in media ad revenue mixes, though forecasts adjust with macroeconomic conditions and policy uncertainty. (
Reuters). (
reuters.com)
Core channels, tactics, and platforms
- –Search: SEO increases unpaid visibility in search results, while SEM refers primarily to paid search ads bought via auctions; both influence discovery and demand capture. (
Britannica;
Optimizely). (
britannica.com,
optimizely.com)
- –Social and influencer marketing: Social platforms enable paid and organic distribution; endorsement disclosures must be clear and conspicuous under U.S. law and guidance. (
FTC Endorsement Guides update;
Disclosures 101 for Social Media Influencers). (
ftc.gov)
- –Content marketing: A strategic, audience‑first approach to creating and distributing valuable, relevant, and consistent content to drive profitable customer action. (
Content Marketing Institute). (
contentmarketinginstitute.com)
- –Email: Commercial email is regulated in the U.S. by the CAN‑SPAM Act, which requires, among other things, an opt‑out mechanism and truthful header information. (
FTC business guidance). (
ftc.gov)
- –Retail media and commerce media: Advertising that runs on retailer‑owned properties and data ecosystems grew to an estimated $53.7B in the U.S. in 2024, reflecting the strategic value of first‑party data. (
IAB 2024). (
iab.com)
Audience behavior and reach
- –Digital platforms mediate large shares of media consumption, especially among younger cohorts. For example, a December 2024 Pew Research Center survey found that nearly half of U.S. teens report being online “almost constantly,” with YouTube the most widely used platform. (
Pew Research Center). (
pewresearch.org)
Measurement, attribution, and analytics
- –Marketers use analytics to connect media exposure to outcomes such as visits, leads, sales, and lifetime value. Research has shown that heuristic models like last‑click often misallocate credit; multi‑touch approaches (e.g., Markov chains, econometric models, field experiments) reveal different channel contributions and carryover/spillover effects. (
Journal of Marketing Research;
International Journal of Research in Marketing). (
journals.sagepub.com,
sciencedirect.com)
Privacy, identity, and platform policies
- –Laws and platform rules constrain targeting and measurement. In the EU, the General Data Protection Regulation (GDPR) requires a lawful basis for processing personal data (e.g., consent, contract, legitimate interests), shaping advertising data practices. (Article 6,
EUR‑Lex). (
legislation.gov.uk)
- –The European Data Protection Board clarified in 2020 that “cookie walls” and implied consent via scrolling do not meet GDPR standards for valid consent, affecting web tracking and personalization. (Ropes & Gray summary of EDPB Guidelines 05/2020:
Ropes & Gray). (
ropesgray.com)
- –In the U.S., the California Consumer Privacy Act (as amended by the CPRA) grants rights to know, delete, correct, and opt out of “sale or sharing” of personal information, and imposes duties on covered businesses. (
California Attorney General). (
oag.ca.gov)
- –Platform policies also shape identity. Apple’s App Tracking Transparency (ATT) requires opt‑in to access IDFA for cross‑app tracking, reducing mobile signal available for targeted ads and attribution. (
Apple Developer—User Privacy and Data Use). (
developer.apple.com)
- –After several delays and regulatory consultations, Google introduced a “new path” for the Privacy Sandbox on the web: instead of fully deprecating third‑party cookies, Chrome moved toward user choice controls and later decided not to roll out a standalone prompt while maintaining existing settings. (
Privacy Sandbox update;
TechRepublic). (
privacysandbox.com,
techrepublic.com)
Advertising law, transparency, and disclosures
- –The Federal Trade Commission polices deceptive digital advertising and has issued staff guidance on effective disclosures (.com Disclosures) and updated Endorsement Guides (2023) addressing reviews, influencers, and child‑directed advertising. (
FTC—.com Disclosures overview;
FTC—Endorsement Guides update). (
ftc.gov)
- –In the EU, the Digital Services Act (DSA) requires that users can identify that content is an advertisement, who paid for it, and meaningful information about targeting parameters, among other transparency obligations. (
EUR‑Lex DSA). (
eur-lex.europa.eu)
Omnichannel marketing and experience
- –Omnichannel marketing coordinates owned, earned, and paid touchpoints across online and offline contexts to provide a seamless customer experience and optimize performance across channels. Seminal work traces the shift from multichannel to omnichannel and frames integration along a continuum. (
Journal of Retailing;
Journal of Retailing). (
sciencedirect.com)
Brand safety, fraud, and supply‑chain transparency
- –Industry initiatives and measurement standards aim to reduce invalid traffic and improve programmatic supply‑chain transparency. Benchmark studies from U.S. trade groups report progress but indicate that not all working media reaches consumers and that attention to MFA (made‑for‑advertising) inventory, fees, and viewability remains important. (
ANA Programmatic Benchmark 2024;
TAG TrustNet register summary). (
ana.net,
tagtrust.net)
Practices and governance
- –Effective programs align strategy, creative, media, data, and measurement; document consent and privacy choices; test and incrementally evaluate; and maintain clear, conspicuous disclosures in ad and influencer content. Foundational principles and checklists are provided by regulators and professional bodies. (
FTC Online Advertising & Marketing portal;
Content Marketing Institute). (
ftc.gov,
contentmarketinginstitute.com)