The marketing automation software market was estimated at USD 3.60 billion in 2020 and is expected to be USD 11.46 billion in 2031, registering at a CAGR of 17.67% through the forecast period (2022-2031). Owing to the increasing significance of marketing in generating sales and customer retention, marketing services are witnessing a rise in their spending.
To keep the businesses updated with the recent technological disruptions across the world, marketing managers are strategically spending in marketing automation solutions and tools to adopt the latest digital marketing trends.
With the onset of the COVID-19 outbreak, many B2B marketing companies adopted a “play it safe” approach through which they reduced their marketing budgets until they could analyze the impact on their businesses and had to wait for the economic scenario to improve. According to a survey by Hubspot, almost half of the businesses implemented a cut of 1%-25% of their marketing budgets. In Q1 of 2020, most of the B2B marketing companies reported budget cuts of +26%, but some of the budgets have been restored, resulting in lower overall budgetary cuts due to the pandemic.
From social media marketing, to SEO or content marketing, marketing managers are making significant investments to support and boost their sales. According to a published article by Advertising Age, in 2019, the total marketing services spending amounted to an estimated sum of USD 248.9 billion, out of which the majority was attributed to sales promotion.
The GroupM, one of the world’s largest advertising media companies in terms of billings, reported a surge in marketing services spending from USD 375.19 billion in 2012 to USD 457.60 billion in 2018. Also, in April 2018, Drift.com Inc. announced that the company raised a total of USD 107 million to boost its marketing and sales platform. Hence, the increase in spending and investments in developing effective marketing solutions, the need for effective marketing is expected to increase in the future.
Organic visibility is expected to increase in the future due to the growth in social media marketing campaigns. Various brands try to improve their return on investment (ROI) by increasing their social media marketing budget. Social media advertisement targeting is likely to become highly targeted by mirroring Google’s Adwords platform. Moreover, 2018 witnessed a 50% increase in social media budget of brands, which is expected to increase even further in 2019.
Key Market Trends
Entertainment and Media Expected to have a Significant Market Share
Virtual reality (VR), over-the-top (OTT) video, and online advertising are projected to be among the fastest-growing revenue generators for entertainment and media companies in developing economies where technology adoption is dominant like the United States, which is a dominant internet advertising and marketing market and globally. These trends increase the need for high internet marketing activity, and the rising automation adoption for these activities supports the substantial scope for the vendors in the market studied.
With smartphone adoption reaching nearly 30% of the global mobile user base, the data generation has exponentially increased. Such statistics further indicate the need for mobile-optimized marketing and an automation supporting software.
Also, in 2018, the US entertainment and media sector had witnessed the second-highest penetration of smartphones. Hence, the adoption of marketing automation software is expected to accelerate in the entertainment and media industry during the forecast period.
Compared to other industries, open email rates of media and entertainment are the highest globally, according to TrackMaven. With customer insights from social media analytics tools, media and entertainment companies can make use of the segmented marketing data (based on demographics and interest) to direct specific content.
For instance, the entertainment and media sectors in India and Canada have positioned themselves on the verge of a strong phase of growth, backed by digitization and improving advertising revenues, owing to the enormous consumer demand. The rising rate of investments by foreign media and entertainment majors in the region has developed the M&E infrastructure to a great extent.
Europe Expected to Witness Significant Growth
Europe’s marketing automation software market is expected to grow significantly over the forecast period, due to increased marketing investment by most regional end-user verticals, coupled with an ever-growing social media penetration. This makes the region a lucrative hub for the studied market.
The growing adoption of SaaS cloud services, increasing demand for data integration services, and expanding 5G network coverage are some of the significant factors that the market studied is estimated to have a massive scope in the region.
Most of the European B2B marketers who are using the marketing automated platforms stated that they are not using them to their full potential. The vendors are focusing to couple their software platform offerings with marketing services to provide customized services. This is strengthening the concept of Marketing as a Service (MaaS) among the region’s business circles. The growing marketplace and the increasing number of marketing channels are also boosting companies to explore new markets by increasing their reach of businesses.
This is driving the growth in marketing and pushing companies to deploy automation to streamline the process.
A wealth of new marketing automation technologies have emerged in recent years to help B2C marketers manage customer engagement. B2B marketers manage leads, and marketers of both types manage other marketing processes, such as campaigns and digital asset management (DaM). Many early marketing automation projects were standalone implementations, with little integration to back-office systems.
The marketing automation software market has several products available with number of companies in the market making it highly fragmented. Hence, being innovative in the market is crucial, as consumers are opting for products with the latest features. The capital expenditure is also high, which has helped companies with powerful competitive strategies to move forward rapidly.
Feburary 2021 – Microsoft Corporation provided new updates for Dynamics 365 Marketing software that includes simplified Marketing settings, a recovery Items tab for customer journeys and event management, more customization for send now functionality, and improved delivery reliability for forms. Two momths later it released another update constituting a completely revamped email editor. The new email editor is poised to address its customers’ most requested improvements. It improved usability, helping marketers create engaging emails more quickly.
Feburary 2021 – Pardot (Salesforce) released new Pardot feature enhancements that helps to set up Pardot faster than ever, maintain engagement data streams with First-Party Tracking, and enhanced functionality in email personalization, deliverability, and reporting. It also improved clone actions, so one can easily copy email content or new asset types associated to their campaigns.
July 2020 – Oracle Corporation reintroduced Oracle Content and Experience, enabling organizations to utilize one universal asset hub to intelligently apply digital assets across both front and back-office applications spanning HR, ERP, SCM, CRM, and CX applications. Built on Oracle Cloud Infrastructure, Oracle Content and Experience merges and expands on what traditional content management systems and digital asset management tools are usually relied upon.
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