Digital ad spending rises by leaps and bounds

Digital marketing is rapidly strengthening its position in Bangladesh’s advertising industry, with around 45 percent of total advertising expenditure now reportedly being allocated to digital platforms, as the country’s digital marketing market is projected to reach approximately US$1.2 billion in 2026.

Industry insiders said the rising number of internet users, widespread smartphone adoption, growing popularity of social media and expansion of online-based businesses are making digital platforms increasingly important for advertisers.

The ability to target specific groups of consumers through platforms such as Facebook, YouTube and Google is also encouraging businesses to shift an increasing share of their advertising budgets from traditional media to digital channels.

Advertising professionals said large companies previously depended mainly on television, newspapers, radio and billboards to promote their products and services. However, a significant portion of those advertising budgets is now moving to digital platforms.


Experts said one of the major advantages of digital advertising is its measurability. Advertisers can analyse how many people viewed an advertisement, how many clicked on it and how many showed interest in a particular product or service. Such data enables businesses to evaluate campaign performance and quickly adjust their marketing strategies.

The expansion of e-commerce, food delivery, fintech, online education, ride-sharing and other digital services is also contributing to the growth of Bangladesh’s digital advertising market. As a large section of younger consumers spends considerable time online, brands are increasingly prioritising digital platforms in their marketing strategies.

However, the rapid expansion of digital advertising has also created several challenges, including the outflow of advertising expenditure to foreign platforms, data privacy concerns, misleading or fraudulent advertisements and ensuring fair earnings for local digital content creators.

Industry insiders believe the use of artificial intelligence (AI), data analytics, influencer marketing and personalised advertising will increase further in the coming years. Consequently, the share of digital media in Bangladesh’s overall advertising market is expected to rise further.

Bangladeshi businesses are also placing greater emphasis on digital marketing and search engine marketing alongside traditional promotional methods such as leaflets, television commercials and billboards.
With around 45 percent of total advertising expenditure reportedly going to digital marketing, the market is expected to reach about $1.2 billion in 2026.

Alongside the expansion of digital advertising, demand for search engine optimisation (SEO) services is also increasing rapidly. Businesses are increasingly recognising that being visible where potential customers search for products and services is crucial for long-term growth.

The search landscape is also changing rapidly. Consumers are now using not only Google but also AI-powered platforms such as ChatGPT, Google AI Overviews and Perplexity to find information about products and services.

As a result, businesses need to focus not only on achieving strong rankings on traditional search engines but also on maintaining visibility across emerging AI-powered search and information platforms.
With experience working with more than 5,000 clients across over 60 countries, Vajra X has established itself as a company focusing on driving long-term business growth through search engines. The company said organic traffic for several businesses increased by as much as 200 percent through its SEO campaigns, while qualified leads also increased several times.

Many businesses are now realising that SEO is not simply an additional marketing expense but an important long-term investment for business growth. With this objective, Vajra X develops SEO strategies, data-driven approaches and industry-specific plans tailored to individual clients.

Similarly, a six-month SEO campaign for BRAC Youth Platform resulted in an 81 percent increase in organic traffic, while 216 new keywords reached top positions in Google search results. The company said the campaign helped more young people easily find information about skills development and employment opportunities.

Engr. Mofakhkharul Islam, Managing Director of Mysoft Heaven and noted IT entrepreneur, told the Daily Observer that the growing use of the internet and smartphones in Bangladesh has changed the way people search for products and services and make purchases.

“As a result, businesses are shifting a larger share of their advertising budgets to digital platforms. One of the key advantages of digital advertising is that it allows businesses to target specific customers and easily measure campaign performance,” he said. From small entrepreneurs to large corporations, businesses now view digital marketing as an important tool for expansion, he said. “The use of AI, data analytics, search engine marketing and personalised advertising will increase further, requiring businesses to adopt technology-driven and data-based strategies,” Mofakhkharul Islam added.