ID: MRFR/ICT/3507-CR | October 2018 | Region: Global | 100 pages
Market Research Future (MRFR) presumes the Global Digital Marketing Software Market to exhibit a 19.4% CAGR from 2018 to 2025 (forecast period). High penetration of smartphones combined with the adoption of social media channels for advertising has led to a demand for digital marketing software. Furthermore, the introduction of Big Data Analytics and Artificial Intelligence (AI) into such software provides businesses with useful insights into consumers and their purchase habits. The growing importance of online media channels may open up new growth opportunities for the digital marketing software market by 2025.
Digital Marketing Software Market is projected to expand significantly during the Covid-19 pandemic as a result of the increasing trend of B2B marketing among companies. This is due to growing barriers on conferences, live events, and face-to-face business in order to promote amid lockdown due to the Covid-19 pandemic.
The demand for digital marketing software during the outbreak of Covid-19 is likely to grow significantly from small and medium-sized companies to promote their products on the digital platform so that it can reach the target consumers globally without meeting them physically.
Rise of social media and social advertising
Social media is currently a key area of focus for marketers. Social media has emerged as an effective way to communicate with a vast number of customers in a very short time. Social media advertising is a huge medium and has been on the rise since the introduction of social networking and professional tools like Facebook, Instagram, YouTube, Skype, Google+, Twitter, and LinkedIn, which have launched new ways to communicate with customers. Social advertising enables marketers to create a powerful brand presence across different target groups of customers. In the case of any product or service issues, social media applications provide the ability to support consumers instantly, thus generating high brand loyalty. All industry verticals are entirely focused on social media for their communication and marketing mix, regardless of the budgets and size of the organization. There has been a clear interest in incorporating digital marketing tools like email marketing, web analytics, campaign management, and content management, with social media applications around the globe. It is estimated that people spend the most on social networking sites; thus, marketers are concentrating on creating new advertising products. Social advertising, location-based advertising, and video advertising have gained tremendous popularity in recent years, enabling marketers to leverage social media through increased users and subscribers. This segment has the remarkable potential to be one of the most promising drivers of the DMS market.
Privacy and security concerns for confidential data
Security is a major concern while executing digital enablement technologies. As IoT and cloud become more common, organizations will need more security and privacy to prevent breaches. The issue of security has an impact on the progress of digitalization. With an increasing number of IoT-enabled digital systems, the number of security and privacy issues is also projected to increase, and every endpoint, gateway, sensor, and smartphone will become a potential target for hackers. Data privacy and security is a barrier that needs to be tackled effectively. Other security problems, such as hijacking accounts, insider threats, insecure Application Programming Interfaces (APIs), malware injections, shared vulnerabilities, and data loss, are more prevalent in cloud-based DMS. Enterprises have a huge data repository containing essential consumer and business data; any kind of cyber-attack on such a repository can be a significant loss to the business. These security concerns related to data access by unauthorized users could also risk enterprise data security and competitive business position.
Global Digital Marketing Software Industry has been segmented into Type and Application.
By type, the global digital marketing software market has been segmented into interaction systems, content production & management, data & analytics systems, and management & administration-oriented apps.
By application, the global digital marketing software market has been segmented into BFSI, manufacturing, retail, high tech & IT, media & entertainment, and others.
North America to lead the global market
In North America, the digital marketing software industry held a significant revenue share in 2019. This is because major businesses and brands seek a larger target audience to promote their content and market their products and services online. Consumers' growing preference for online shopping is also anticipated to offer opportunities to advertisers to market their products online. This, in turn, is augmenting the growth of the digital marketing software market in the region. In North America, numerous associations and organizations such as the Cloud Native Computing Foundation and the National Cloud Technologists Association are encouraging the use of cloud computing to implement a range of high-tech solutions like CRM, content management, and cloud platform marketing. Furthermore, the region is home to prominent industry players, such as Oracle Corporation, IBM Corporation, and Microsoft Corporation, which are well-positioned for the digital marketing software market.
Several players are active in the industry, including established players with global operations, and regional and local market players catering to a limited number of clients. The market for digital marketing software is thus highly fragmented and marked by intense competition.
Notable players in the digital marketing software market include Adobe Systems (U.S.), SAP SE (Germany), Oracle Corporation (U.S.), Microsoft Corporation (U.S.), SAS Institute Inc. (U.S.), IBM Corporation (U.S.), HP Enterprise Development L.P (U.S.), and Hubspot Inc. (U.S.).
This research report estimates revenue growth at global, regional, and national levels and offers insight into new updates in each sub-sector from 2018 to 2025. For this report, MRFR divided the global digital marketing software market report by type, application, and region.
Frequently Asked Questions (FAQ) :
Increasing penetration of smartphones, coupled with rising popularity of social media platforms, is anticipated to influence the market growth positively.
The retail segment is likely to emerge as the largest segment of the market by the end of the forecast period.
Interaction systems, content production & management, data & analytics system, and management& administration-oriented apps are the types of digital marketing software profiled in this report.
The data & analytics system segment is estimated to register 20.5% CAGR.
The media & entertainment segment will be valued at USD 35,195.9 Mn by 2025.
Digital Marketing Software Market - Summary
Integration of digitalization can provide a new platform to sell, and it can work across industry verticals. The idea, at present, is spreading like wildfire. As the platform makes it easier for users to reach a wider audience base and they can witness exponential growth in their business. Digital marketing software market is going to flourish in coming years even more if considered, the way it is getting traction from several strata such as people getting more accustomed with social media platforms, companies advertising products and services through these channels. The global digital marketing software market is also expecting more than quadruple growth from USD 22,870.8 million in 2013 to USD 119,077.5 million in 2025 with an astonishing 19.4% CAGR during the forecast period (2018-2025).
This growth by leaps and bounds can be attributed to several drivers such as advertising percolating digital platforms, an increasing number of mobile users. Social media platform such as Facebook and Instagram have now emerged as a trusted way of advertising products. As per Omnicore Agency, around 3.03 billion people, at present, are registered social media users. And the numbers are further rocketing with each passing year. About 64% of them have admitted that video streaming has impacted their purchasing pattern considerably. 43% of the online stores witnessed significant traffic in the social media platforms. Increasing number of smartphone users is also influencing the digital marketing software market considerably. This has allowed mobile advertising to grow at an unprecedented pace. Integration of artificial intelligence, big data analytics, and predictive analytics are also acting as market influencers.
However, security concerns over data privacy can have a bottleneck effect on the growth of the digital marketing software market. Social media marketing, email marketing and other platforms with a large amount of data are exposed to the threats of hacking. This can leak a significant amount of personal data, and its protection incurs constant upgradation which costs substantially.
By type, the digital marketing software market can be segmented into interaction systems, data & analytics system, content production & management, and management& administration-oriented apps. Interaction systems to scale USD 53,340.2 million market valuation by 2025 with an impressive CAGR of 19.5% during the forecast period. However, data & analytics system to record the fastest CAGR of 20.5% during the review period and scale valuation of USD 33,667.2 million by 2025.
By application, the digital marketing software market includes retail, media & entertainment, manufacturing, high tech & IT, banking, financial services and insurance (BFSI), and others. The retail segment is going to take over from media & entertainment during the forecast period with an estimated market valuation of USD 35,736.8 million with the fastest CAGR of 21% during the forecast period. Media & entertainment segment to follow with USD 35,195.9 million market valuation with the second-best CAGR of 20.3 % during the forecast period.
Region-specific analysis of the global digital marketing software market spans across namely the U.S., Europe, China, India, Japan, and South-East Asia.
The U.S. market to head the regional analysis of the digital marketing software market with an expected rise to a valuation of USD 28,785.6 million by 2025. The regional market can bank upon people’s tendency to adopt these latest trends and reap the benefits of superior infrastructure and better network facility.
Europe can expect to reach a valuation of USD 27,598.9 million during the forecast period at an impressive CAGR of 16.2% during the forecast period. The region is getting dominated by the interaction systems a lot.
China can be a fierce competitor for any regions as its market valuation is expecting a manifold upgradation from USD 2,571.9 million in 2018 to USD 14,145.4 million with a stellar 27.6% CAGR during the forecast period. Japan can reach a market valuation of USD 6,528.9 million during the same period with a 22.6% CAGR during the same period. India, on the other hand, can register the fastest growth rate during the forecast period by having a CAGR of 31.7% and scaling a valuation of USD 11,550.6 million.
Major companies influencing the global digital marketing software market are Oracle Corporation (U.S.), IBM Corporation (U.S.), SAP SE (Germany), Microsoft Corporation (U.S.), SAS Institute Inc. (U.S.), Adobe Systems (U.S.), HP Enterprise Development L.P (U.S.), Hubspot Inc. (U.S.), and others. These companies thrive on their strategic implementations which include mergers, acquisitions, collaborations, new product launches, and other methods. For instance, Oracle launched the SMS public aggregator network (SPAN) within its clouds in July 2018 and Auto Elite Data Marketer for auto dealer agencies in February 2018. IBM started providing personalized brand experience in collaboration with Facebook since 2015. SAP SE is partnering with PROS to enhance their SAP Hybris commerce solution’s performance.
Many IT giants currently dominate the digital marketing software market. The factors that are influencing the implementation of such software include rapidly changing customer purchasing patterns, intense competition among solution providers, and continuous fluctuations in exchange currency among others. The vendors are developing unique software solutions which are adopted in various commercial aspects that include interaction systems, data and analytics systems, content management and production, and management and administration-oriented applications. With the increasing cloud infrastructure, most of the companies are deploying its products on the cloud which is convenient, affordable and offers greater accessibility across various end users. Furthermore, the growth of the market vendors is dependent on the market conditions, availability of solutions, and industry development.
Companies such as IBM Corporation, HP Enterprise Development LP, Adobe systems, HubSpot Inc., Oracle Corporation, Microsoft Corporation, SAP SE, and SAS Institute are competing in terms of pricing, geographical presence, and industrial experience. Other companies that are also playing a crucial role in the development of the digital marketing software are Salesforce.Com, Cognizant, and Act-on-Software among others. These companies, as well as above mentioned companies, are making heavy investment to integrate with disruptive technologies such as artificial intelligence, predictive analytics, and others to provide personalized customer experience. The companies offer high-end software solutions that provide comprehensive customer insights, enhance customer experience, and increase ROI. The company is also likely to adopt inorganic growth approaches through partnerships and collaboration to innovate high-end software solution. Recently Marketo Inc. has been acquired by Adobe Systems, increase its product offering. In a similar development, Sitecore has been acquired by Microsoft Corporation to increase its technical capabilities in highly customized tools for its customers. Considering the developments of these companies, it can be concluded that the digital marketing software market is presumed to be influenced by predictive analytics, artificial intelligence and many other technologies which help the businesses to provide proactive solutions to increase customer base and improve customer experience.
Oracle Corporation engages in the provision of products and services in the field of information technology. The company operates through three reportable segments: cloud and license, hardware, and services. It has a diverse portfolio of cloud-based products with a dedicated focus on innovation to increase its products offering and expand its customer base. Oracle also considers strategic acquisition as one of the important elements of growth strategy to enable the process of innovation, increasing customer base, and deploying products and services.
IBM Corporation is a provider of information technology worldwide. The company has a prominent history of manufacturing computer systems, computer hardware, software, and offering information technology consulting services. The company operates through five business segments: cognitive solutions, technology services, business services, global financing services, software services, and system hardware. It primarily aims to increase its business productivity by building partnerships with tech giants and exploring the untapped market as a part of its inorganic growth strategy. The company primarily focuses on innovation with constant re-invention and transformations. It also aims to provide specific and customizable solutions as per the client needs.
Adobe System is a globally recognized software company that is engaged in providing a range of products and services used by professionals, online merchants, application developers, and others. The company operates through three segments namely digital media, digital marketing, and print and publishing. It follows organic growth as well as inorganic growth approaches. The company spends a large amount of investments in research and development to offer a broad portfolio of products, services, and solutions in its reportable segments and maintains its position in the market. Additionally, it focuses on its cloud-based offerings which are licensed on a subscription basis to accelerate its long-term revenue growth.
HubSpot Inc. is engaged in a cloud-based marketing and sales software platform. The company operates under one operating segment offering subscription-based software associated with professional services and others. The company offers software platform offering integrated applications that include social media, search engine optimization, blogging, website content management, marketing automation, and others. It strongly focusses in expanding its business in the US market to increase its customer base. Through its all-in-one software platform, the company allows mid-size businesses to efficiently adopt and execute effective inbound marketing, sales strategy for new product development and innovation as part of its organic strategy. The company has been involved in various innovation and R&D to ensure a strong market, global presence, and excellent product portfolio.