ID: MRFR/ICT/3507-CR | October 2018 | Region: Global | 100 pages
The Digital Marketing Software industry is expected to witness a growth of over USD 119,077 million by the year 2025 while registering a CAGR of 19.4%. The Digital Marketing Software market value was at USD 23 million in the year 2019, it has witnessed a huge growth rate in a short period. With the on-growing advancements in the digital world, a huge population is intensively using the internet on daily basis. Especially the traditional methods are costly and offer less control over the audience. On the other hand, digital marketing focuses on the potential customer and sends the customers specific personalized marketing messages. This way the consumer is retained and yields higher revenue for the business. Digital Marketing Software is more like a tool that enables the marketer to analyze and perform marketing-related operations under one platform.
The Digital Marketing Software is utilized to create ad content, design them in a way appealing to the consumers, manage and optimize them according to the requirements. Several Digital Marketing Software solutions offer stock images, emojis, story borders, colors, and everything to design the ad content. The autopilot scheduler and performance comparison tools enable the marketer to get the product or service effectively to the potential consumer. The increasing necessity to increasing sales and optimization of marketing campaigns has bolstered the growth of the Digital Marketing Software Market.
COVID 19 Analysis:
The pandemic has triggered the overall Digital Marketing Software market growth positively. There has been an increased usage of apps that are available for multiple essential services.
Currently, the App developers are concerned in revising their advertising setups and looking for solutions that help them to improve their capabilities as there has been a significant economic downfall in the sector.
Additionally, the small and large enterprises are arranging meetings online, contacting their potential consumers online. They are effectively promoting their products and services online. This change in the trends has hugely impacted the growth of Digital Marketing Software market value.
The increased usage of Digital marketing including small and medium-sized enterprises has bolstered the growth of the Digital Marketing Software market value. The popular tools of Digital Marketing software include email software, analytics, customer relationship tools, autopilot scheduler, and automated report generation for the campaign to track essential processes in digital marketing. Such highly efficient tools enhance the consumer experience and build a personalized connection with the customers. Such attractive features and tools offered by the potential Digital Marketing Software solution increase the growth of the industry.
Increased usage of social media has a serious impact on the Digital Marketing Software Market. Social media is the primary focus of digital marketers as it paved an effective way to reach potential customers within a short period. The advent of social media technologies has enabled companies to build their brands over different customer groups. Various methods of advertising such as Social Advertising, location-based advertising, video content advertising can be carried out on any social media platform, such factors have aided the growth of the Digital Marketing Software industry.
The changing trends of wireless communication and the increasing adoption of wireless devices and smart devices have impacted the Digital Marketing Software market growth in recent years. As the advertisers have understood the increasing usage of social media by the consumers, they are looking for ways to promote their products on social media platforms rather than investing in the traditional methods of marketing. Such practices of the advertisers have increased the demand for the Digital Marketing Software market growth.
The retailers have started to market their products and services by location-based advertising services. This had helped them to send marketing messages to the potential customers based on the updates and discounts available, this aspect has been appreciated hugely in the market in recent times. This changing attitude of the retailers is likely to increase the demand for the Digital Marketing Software Market. Additionally, the proliferating smartphones have encouraged the marketers to send messages to the customers and thereby strengthening the relationship with the customers. Such factors also have provided sufficient opportunity for the Digital Marketing Software Market growth.
Vendors are focused on building Digital Marketing Software solutions that are easy to operate with. However, the lack of skilled operators and specialists in handling the software solutions and managing the security concerns are hindering the growth of the Digital Marketing Software Market.
The advent of cloud computing and IoT have increased the necessity of implementing security and privacy tools to software systems. Enterprises which possess critical customer information and business-related information are aware of the security breaches. Hence the security concerns and the privacy issues are considered as the primary restraining factors of the Digital Marketing Software market growth.
The higher capital costs as the software possess several automated tools is the major challenge of the Digital Marketing Software industry. Since the Digital Marketing Software solutions offer effective tools like premium search techniques, greater brand awareness enables a clear view of the relevant audience and so on, the capital costs are higher for small or medium-sized organizations.
Continuous tracking of customer’s preferences is difficult. Industrial growth is driven by the customers. The changing attitude of customers imposes a serious negative impact on the Digital Marketing Software solution.
Cumulative Growth Analysis:
Digital Marketing Software solutions provide various options and methods to reach out the potential customers. The Digital Marketing Software solutions provide actionable insights over the customer preferences and other similar attributes. Some potential Software solutions enable the marketer to identify the right channel for investment, hence the software decides for the marketer by carefully considering the various parameters. Such factors have bolstered the growth of the Digital Marketing Software industry. The Digital Marketing Software industry is expected to witness a growth of over USD 119,077 million by the year 2025 while registering a CAGR of 19.4%. The Digital Marketing Software market value was at USD 23 million in the year 2019, it has witnessed a huge growth rate in a short period. Currently, CRM software is accounting for the largest revenue in recent years. The CRM software enables the marketers to manage the customer conversations, handle a large volume of client and business-related information and manage them efficiently; automated sales, excellent customer retention, and acquisition are attained with the help of the software.
Value chain analysis:
The increased proliferation of the internet and cheaper rates of internet connectivity and the lockdown scenario has increased the demand for digital marketing solutions for the expansion of the business. The interactive chatbots, other AI and ML-related software programs have enabled the marketers to reach the target customers. One of the amazing features that the internet has to offer is the 'power of sharing'. The customers can share their reviews freely on social media, and few more customers are following the advice given on the review. This has increased sales productivity. Hence the internet accessibility has a huge impact on the growth of the Digital Marketing Software industry.
The vendors are focusing on providing several useful applications and use in one platform which offers flexibility to the digital marketers to achieve their goals. The marketing analytic tools help to empower the overall business growth. Additionally, the essential tools that decide on behalf of the marketers are some of the crucial features that tend to drive the growth of the Digital Marketing Software market size. The existing digital tools like SEO writing assistant that helps in content creation, Social media tracker, and content analyzer are the primary strategies and tools that help in growing the business.
Based on the component:
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Based on industry vertical:
North America is the region that possesses a higher number of industrial sectors and commercial sectors. The growing economy in the country and improved infrastructure are the primary reasons for product developers and manufacturers to opt for Digital Marketing Software solutions to boost their business growth. Secondly, Europe and Asia-pacific are the two regions that stand next to North America in terms of revenue generation and statistics. The tools that are provided by the Digital Marketing Software solutions enable the marketers to have a clear view of the entire statistics of the business. The tools also constantly monitor the ongoing trend concerning the market. A complete sheet of marketing tasks and schedules for the campaigns enable the business leads to decide better based on the data-driven system.
Hence the growing economical countries are also increasingly adopting Digital Marketing Software solutions for their businesses.
The ad-blockers have been the primary challenge for the marketing industry, as the customer might be annoyed if the ad content blocks their view. Over 27% of internet users intensively use the ad-blockers and are ready to pay for them. Hence analyzing the target audience and locations of posting the ads are essential. Current trends are focusing on influencer marketing as the customers have increased the usage of ad blockers.
Voice interaction marketing strategy:
Siri, Google, Alexa are some of the smart devices that enable the user to interact actively. As these devices talk to people, customers are more likely to prefer this kind of interaction. This methodology is utilized to help the customers to discover things online for shopping or other essential activities.
This report has covered:
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.