Marketing Analytics Software Market Size, Share & Trends Report

Marketing Analytics Software Market Size, Share & Trends Analysis Report By Application, By Deployment, By Organization Size, By Industry Vertical, By Region, And Segment Forecasts, 2020 - 2027

  • Published Date: Jan, 2021
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68039-286-6
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 154

Report Overview

The global marketing analytics software market size was valued at USD 2.70 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 14.8% from 2020 to 2027. The continuous need to penetrate the market more effectively and understand consumer demands is expected to encourage organizations and institutions to adopt marketing analytics tools and solutions. The use of marketing analytics enables companies to understand the performance of their marketing campaigns better and engage in the comparative analysis as to which application offers the highest returns. This is done by gauging critical business metrics, such as marketing attribution, overall marketing effectiveness, and Return on Investment (ROI).

U.S. marketing analytics software market size, by application, 2016 – 2027 (USD Billion)

Cloud computing technology has been one of the primary growth drivers for the market. Large enterprises engage in several marketing channels, which results in the generation of large datasets. Cloud computing technology enables marketers to organize and analyze structured and non-structured data using marketing analytics platforms in a cost-effective manner. The popularity of cloud-based marketing analytics software has increased owing to benefits, such as better functionality and cost-effectiveness, and this has encouraged service providers, such as Oracle Corporation and Adobe Inc., to offer cloud analytics solutions to marketers. 

The rapid penetration of social media platforms has also offered growth opportunities to market players. Facebook and Instagram are two of the most used social media platforms worldwide that offer marketers new channels to advertise their products. Social media platforms gather a large amount of user data, such as audience demographics and demands, which can be effectively utilized to understand consumer buying preferences and offer products, services, and solutions according to their needs. Several SMEs such as Zulily, LLC, and RealEats and large enterprises such as TGI Fridays Franchisor, LLC and Subway IP LLC have used marketing analytics solutions, which have helped the companies enhance their product offerings and improve business operations.

Organizations are continuously undertaking various measures to optimize their marketing investment, which is spent in different marketing campaigns. Big data analytics has facilitated the growth of the market as it helps in analyzing customer loyalty, marketing performance, and consumer engagement. The popularity of the Marketing Mix Model (MMM) is fueling the market growth due to the technology's ability to help organizations estimate spending on different advertising channels and their effectiveness. This has resulted in a rising demand to upskill marketers or hire technically qualified marketers responsible for incremental market growth. 

Application Insights

The social media marketing segment accounted for the largest revenue share of over 30.0% in 2019. This can be attributed to the high usage of social media platforms in developing economies, such as India, Indonesia, and Brazil. The availability of affordable internet packages has aided the internet to reach places that were earlier inaccessible, which is enabling marketers to identify people's needs and device suitable marketing campaigns. Social media marketing also enables marketing teams to improve customer relations and monitor competition more efficiently by carefully analyzing consumer engagement trends. This is promoting the wide-scale adoption of social media marketing practices. 

The e-mail marketing segment accounted for a significant revenue share in 2019. This can be attributed to factors, such as effectiveness in reaching more people directly and the ability to form deeper relations. Even though social media marketing offers detailed audience data, e-mail marketing offers a higher conversion ratio as different advertising campaigns can be planned according to different groups of people. People usually subscribe to their preferred brands’ e-mail lists, which offers marketers the opportunity to improve engagement rate, brand awareness, and revenue generated by marketing activities. 

Deployment Insights

The cloud deployment segment accounted for the largest revenue share of over 73.0% in 2019. Several SMEs prefer adopting the cloud deployment model as it enables them to leverage marketing analytics software without making changes to the existing IT infrastructure. Furthermore, the cloud deployment model is enabling organizations to use public cloud, private cloud, or hybrid cloud according to the marketing team’s requirements. Cloud-based marketing analytics software further aids in scalability and offers flexibility for data analysis, thus offering an impetus to the marketing analytics software market growth.

The on-premise segment accounted for a significant revenue share in 2019 owing to higher security and control offered by on-premise datacenters. The on-premise deployment of marketing analytics software improves data accessibility for marketing teams, thereby helping to fit the results according to end-users. Deploying an on-premise analytics platform encourages companies to hire specialized talent, thus ensuring that the output is of high quality. Additionally, the on-premise deployment model helps users customize their software according to the needs and requirements of their marketing teams, thus enabling them to get the desired result. 

Organization Size Insights

The large enterprises segment accounted for the largest revenue share of over 76.0% in 2019. Large enterprises indulge in exhaustive marketing practices and run different marketing campaigns. Online and offline campaigns run by brands and agencies across various channels generate large amounts of data pertaining to consumer behavior data, ad effectiveness, and audience preferences. The use of marketing analytics software helps marketers gain useful insights from this data, make necessary changes to their marketing campaigns, track revenue growth, and enhance service offerings. 

The SMEs segment accounted for a significant revenue share in 2019 owing to the rising need to design more interactive and better marketing campaigns. The growing popularity of social media and the ability to indulge in cost-effective cloud-based analytics practices are encouraging SMEs to engage in cost-effective marketing practices, thus offering growth opportunities. Furthermore, marketing analytics improves marketers’ search capabilities by providing detailed insights into prospective customers in a cost-effective manner. These insights encourage SMEs to develop data-driven marketing campaigns and offer services at more affordable rates to their customers. 

Industry Vertical Insights

The consumer goods segment dominated the market in 2019 with a revenue share of over 26.0%. This can be attributed to the rising demand amongst consumer goods companies to identify and predict consumer behavioral trends and product positioning efficiency. Consumer goods companies generate copious amounts of data regularly, which includes data pertaining to sales and consumer buying preferences. This data is analyzed to determine the efficiency of marketing campaigns and then designing a marketing strategy that churns maximum profits and improves business efficiency. 

Global marketing analytics software market share, by industry vertical, 2019 (%) 

The media and communication segment accounted for a significant revenue share in 2019 owing to the rise in the adoption of smart devices and connected ecosystems, which has resulted in the creation of a demanding customer base. Marketers in the media and communication sector need to understand the nature of audience interaction and the type of content across various screens and channels. This data is to be processed via analytics platforms for quick, holistic, and real-time views of consumers' content-viewing patterns and preferences to strategize efficient marketing campaigns. Several companies including Netflix have been using marketing analytics, which helps them engage in fine-grained and in-depth audience analytics and increase the content deal for “House of Cards” to nearly double the initial amount. 

Regional Insights

North America dominated the market in 2019 and accounted for a revenue share of over 46.0%. This can be attributed to the trend of high social media usage and the availability of high-speed internet services in the region. The high usage of social media offers marketers a new and efficient channel to engage in advertising and marketing practices. Furthermore, a significant e-commerce ecosystem in the region offers marketers the opportunity to analyze the data generated by e-commerce sales, thus offering insights regarding customer buying preferences, which helps design efficient marketing strategies. 

Asia Pacific accounted for a significant revenue share in 2019. This can be attributed to the vital AI development hubs in Singapore, Vietnam, and Malaysia. The emergence of new startups that offer AI-enabled analytics services is also driving the regional market. Additionally, the rapid implementation of digital government initiatives in Singapore and China has led to the emergence of several startups that offer services based on analytics and other advanced technologies, offering an impetus to the regional market growth. 

Key Companies & Market Share Insights

Service providers in the market offer customizable dashboards and pre-built marketing dashboards to enhance their service offerings. The use of customizable dashboards enables users to generate reports according to their preferences and needs, thus offering the opportunity to churn out the platform's full capability. For instance, Klipfolio Inc. and Salesforce.com, Inc. offer users the opportunity to design their dashboards and leverage a more seamless software experience. Adobe Analytics is enabling users to add up to ten segments and three metrics, which offers more filtered and detailed results. 

There has been a shift in organizational demands when hiring marketing professionals. Companies now prefer more technically inclined marketing individuals to handle and process large datasets more efficiently. Corporations have also started engaging in M&A activities to diversify their service offerings and enhance the end-user experience. For instance, in November 2020, Accenture acquired End-to-End Analytics to positively impact the supply chain, trade promotion, pricing, and marketing using its strong portfolio of accelerators and assets. Some prominent players in the global marketing analytics software market include:

  • Accenture

  • Adobe Inc.

  • Google Inc.

  • Funnel

  • IBM Corporation 

Marketing Analytics Software Market Report Scope 

Report Attribute

Details

Market size value in 2020

USD 2.83 billion

Revenue forecast in 2027

USD 7.43 billion

Growth Rate

CAGR of 14.8% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027  

Quantitative units

Revenue in USD billion and CAGR from 2020 to 2027

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, deployment, organization size, industry vertical, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; Germany; U.K.; China; India; Japan; Brazil; Mexico

Key companies profiled

Accenture; Adobe Inc.; Google Inc.; Funnel; IBM Corporation

Customization scope

Free report customization (equivalent up to 8 analyst working days) with purchase. Addition or alteration to country, regional, and segment scope.

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Avail customized purchase options to meet your exact research needs. Explore purchase options


Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global marketing analytics software market report based on application, deployment, organization size, industry vertical, and region:

  • Application Outlook (Revenue, USD Billion, 2016 - 2027)

    • Social Media Marketing

    • E-mail Marketing

    • Search Engine Marketing

    • Content Marketing

    • Others

  • Deployment Outlook (Revenue, USD Billion, 2016 - 2027)

    • On-premise

    • Cloud

  • Organization Size Outlook (Revenue, USD Billion, 2016 - 2027)

    • SMEs

    • Large Enterprises

  • Industry Vertical Outlook (Revenue, USD Billion, 2016 - 2027)

    • Retail

    • Consumer Goods

    • Industrial

    • BFSI

    • Media & Communication

    • Healthcare

    • Others

  • Regional Outlook (Revenue, USD Billion, 2016 - 2027)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • MEA

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