In these fast-moving days, you must have come across the term ‘exponential growth’ in almost every field: be it technological advancements, finance, population studies, or digital marketing. So what is the exact meaning of exponential growth, and what significance does it really hold?
What is Exponential Growth?
Exponential growth is the increasing of quantity at a consistent rate at any moment. The growth rate at any moment in time depends on the value at the same instant. Simply put, the bigger it grows, the faster it grows. This curve with a sharp climb is commonly called an exponential growth curve.
For example, if a population grows at 5% per annum, the amount added each year becomes greater because it is calculated on an ever-growing base. So in year one, you mature from 1,000 to 1,050. In year two, it is 1,102.5, so on and so forth, and after a very long period of time, the numbers grow astronomically.
Real-Life Examples of Exponential Growth
- Technology: Moore’s law is a classic example—predicting that computing power doubles roughly every two years.
- E-commerce: The rise of e-commerce has also followed the same fashion of exponential growth, especially around and after the COVID-19 pandemic.
- Social Media: Exponential user growth was observed on platforms like Instagram and TikTok due to network effects.
- Population Growth: Historically, exponential patterns were exhibited by human populations before the widespread availability of birth control.
Future of Digital Marketing : What It Is and Why It Matters
In these fast-moving days, you must have come across the term ‘future of digital marketing’ in almost every field: be it technological advancements, finance, population studies, or digital marketing. So what is the exact meaning of exponential growth, and what significance does it really hold?
What is Exponential Growth?
Exponential growth is the increasing of quantity at a consistent rate at any moment. The growth rate at any moment in time depends on the value at the same instant. Simply put, the bigger it grows, the faster it grows. This curve with a sharp climb is commonly called an exponential growth curve.
For example, if a population grows at 5% per annum, the amount added each year becomes greater because it is calculated on an ever-growing base. So in year one, you mature from 1,000 to 1,050. In year two, it is 1,102.5, so on and so forth, and after a very long period of time, the numbers grow astronomically.