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

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).

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. 

Marketing Analytics Software Market Trends

Social media marketing is a crucial strategy opted by publishers for monetization. The digital marketing model envisages the application developers getting paid by the advertising agencies for serving the advertisements via their mobile apps. Mobile-based advertisings are playing a decisive role in driving global media consumption. Hence, social media is emerging as a vital marketing channel for advertising agencies and brands. By enabling features, such as sophisticated user targeting and data tracking, social media marketing platforms are also allowing advertisers to target customers with pinpoint accuracy. Several publishers and marketers are adding social media channels along with their cross-device campaigns to their advertising strategies.

Apart from targeting users individually based on their interests and locations, among other parameters, advertisers and marketers are also leveraging the advances in technology to improve the ability to ensure that appropriate ads are delivered flawlessly to the relevant users. Any further advances in technology would continue to improve the effectiveness of the delivery of marketing solutions.

The outbreak of the COVID-19 pandemic has brought about a paradigm shift in the behavior of individuals when it comes to using different digital platforms for buying. Advertising companies are increasingly following digital marketing techniques and are providing publishers with advanced advertising capabilities. As the smartphone penetration rate increases, marketers are looking forward to collaborating with digital marketing platforms for promotional activities and are eventually switching from conventional to digital marketing channels.

The rising usage of social media platforms by individuals is expected to offer new growth opportunities in the sector, enabling companies to determine marketing campaigns' performance. The use of social media platforms as marketing channels helps organizations increase brand awareness, thereby boosting sales results.

Additionally, social media analytics also enables marketers to gauge the RoI of advertising campaigns in real-time. This can be in the form of website visits via ad posts, engagement, and clicks on the advertising campaign. For instance, in 2020, McDonald's India North and East started a new social media advertisement campaign, McGrillisBack, to capture a larger revenue share in the Quick Service Restaurant (QSR) market. The campaign helped the company gain 24,000 posts on Twitter and more than 200 followers on Instagram.

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. 

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.

No one can exactly predict the end result when it comes to measuring customer behavior. It is more important to gauge the customer behavior in terms of their purchasing patterns and decisions. The analysis tools provide what the customers are most likely to buy next time or less likely to buy.  So the incremental term defines getting more customers to shop, which eventually results in marketers selling more products. The data analysis software or tool will group these customers into new customers and repeated ones. They apply various algorithms and calculations such as double delta calculations on these groups, which allows them to measure the promotional and non-promotional impact of the marketing campaign.  Customer frequency, breadth of shopping pattern, customer consistency, marketing response, average units per month, and promotional mix of sales are some of the KPIs for the business that helps in analyzing the impact of marketing actions. Marketing analytics software helps to record these metrics and allows to perform various calculations over it.  Tracking these metrics permits identifying whether the business is growing or shrinking and allows to create and strengthen customer relationships that will develop loyal customers. More is the repeated customers, more is the business and incremental growth. 

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 

Global Marketing Analytics Software Market Segmentation

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