Macroeconomic Factors Influencing Digital Marketing Growth

Constant Contact is an online digital marketing and social media engagement service. They focus primarily on small business, and they provide services ranging from email and marketing events to social media campaigns. Their annual revenue has increased at a rate of 37% between 2007 and 2012. Although they have seen a recent decline in this increase, they have found great success within this niche. It is believed that their recent decline in growth can be attributed to the recent increase in online services in direct competition with constant Contact.

The dramatic growth in revenue for this company can be attributed to a number of macroeconomic factors. These factors have changed the way companies view marketing and what they are choosing to spend their money on.

Stronger Overall Economy. As the economy strengthens, companies are spending more on marketing activities. This is particularly true for small businesses looking to scale their operation during a period of potential growth. Approximately 90% of Constant Contacts revenue comes from U.S.-based companies, so the overall economic conditions within the U.S. arguably have a direct impact on the growth or decline of the company.

Increase in Social Networking. Most small businesses have a very limited marketing budget, which often results in business owners handling marketing activities on their own. However, social media marketing often provides an immediate positive impact, so putting money towards social media marketing activities through a company known for their social media marketing feels like a safe bet.

The increase in social networking overall also justifies spending money on social media marketing from a business-owner standpoint. According to, the average amount of time consumers are spending on social media websites is increasing dramatically. From 2010 to 2013, the amount of time people spend on social media websites has increased from 17.5% to 28.8%. For companies, this translates to higher page views and increasing conversion rates is marketed correctly.

Big Data Tools. The increased use of big data and analytic tools, like Facebook Insights and Google Analytics allows small businesses to see the direct and ongoing affects of marketing activities on their website traffic. This increases the demand for targeted marketing campaigns, which leads to the utilization of companies like Constant Contact that specialize in such campaigns.

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