Marketing Analytics Software Market Research, 2031
The global marketing analytics software market was valued at $3.9 billion in 2021, and is projected to reach $14.3 billion by 2031, growing at a CAGR of 13.9% from 2022 to 2031.
Marketing metrics and marketing analytics are completely different, and it is important to note the distinction. Marketers are inundated with metrics, or data points, that they can use to dictate marketing activities and boost customer satisfaction. However, without analytics, marketers are unable to take that next step. Marketing analytics puts those metrics into context, turning them into actionable insights and helping drive revenue.
Increasing use of social media channel and the rising employment of big data analytics boost the growth of the global marketing analytics software market. In addition, the incremental need to gauge customer behaviour positively impacts the growth of the market. However, the high cost of deployment hampers the marketing analytics software market growth. On the contrary, growth in advanced technology such as 5G is expected to offer remunerative opportunities for the expansion of the marketing analytics software market during the forecast period.
The marketing analytics software market is segmented into Deployment Model, Enterprise Size, Application and Industry Vertical.
The marketing analytics software market is segmented on the basis of deployment model, enterprise size, application, industry vertical, and region. On the basis of the deployment model, the market is fragmented into on-premises and cloud. On the basis of enterprise size, the market is bifurcated into large enterprises and SMEs. On the basis of application, the market is classified into social media marketing, E-mail marketing, search engine marketing, content marketing, and others. By industry vertical, it is categorized into retail, consumer goods, industrial, BFSI, media & communication, healthcare, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Deployment Model
Cloud segment is expected to witness the highest CAGR of 15.3% from 2022 to 2031. This is attributed to integrate marketing analytics software with companies customer relationship management (CRM) platforms.
In terms of deployment model, the on-premises segment holds the highest marketing analytics software market share as it provides organizations to have absolute control over security & other connectivity issues and improves the scalability, speed, reliability, and connectivity of organizations. However, the cloud segment is expected to grow at the highest rate during the forecast period as it facilitates enterprises with superior control over access to applications and sensitive information from distant locations.
North America accounted for the highest market share in 2021. This is attributed to mature and well established market with a healthy risk appetite and inclination toward technological innovations.
Region-wise, the marketing analytics software market size was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to rise in adoption of big data, AI, and other analytics technology by enterprises for increasing their production and enhancing their market share. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to the rise in marketing analytics software technology investment.
Major players operating in the marketing analytics software market include Accenture, Adobe Inc., Google Inc., Funnel.io, IBM Corporation, Oracle Corporation, Improvado Inc, SAS Institute Inc., Tableau Software LLC, and Teradata Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Marketing analytics skills are among the most important capabilities in the marketing organization. In addition, it remains difficult to recruit, hire, and retain people with strong skills to support in-house teams. Furthermore, vendors in this market specialize in advanced analytics, including sophisticated methods such as mapping the customer journey, attributing marketing spending to measured outcomes, simulating & measuring the business impact of marketing & advertising campaigns, and implementing predictive models. Three types of marketing analytics are there, each of them deals with a certain scope of data and marketing channels which includes web analytics, social media marketing analytics, lead generation and attribution, SEO analytics, and email marketing analytics. Moreover, digital technologies such as Artificial intelligence, machine learning, and IoT are the major technology software that play a vital role in marketing analytics software. AI allows marketers to analyze more data than a human mind could comprehend, respond to an audience's preferences better, and use natural language processing to understand the target market. ML-enabled marketing automation, companies can drive down costs and free marketers time for more value-added tasks and allows companies to have a much better understanding of consumer profiles, create personalized offerings at scale, and increase customer lifetime. IoT data analytics is used to gather valuable information related to customers that includes customer behavior, preferences, and needs. This is beneficial for in-store activity. Big data analytics allows one to understand the customer journey, gain qualified leads, and convert them into sales, and engage customers at scale.
The global marketing analytics software industry is expected to register high growth due to the continuous need to penetrate the market more effectively and understand consumer demands are expected to encourage organizations and institutions to adopt marketing analytics tools and solutions are expected to drive industry growth. Thus, the increase in the adoption of marketing analytics software, owing to its analytics platform is one of the most significant factors driving the growth of the market. With a surge in demand for marketing analytics, various companies have established alliances to increase their capabilities. For instance, in October 2022, GetintheLoop partnered with Thryv Holdings, Inc. to offer Thryv’s small business management software to clients across the country. For instance, in October 2022, Accenture partnered with Sitecore to help organizations accelerate response to market changes and better meet customers’ evolving demands across content, experience, and commerce.
In addition, with further growth in investment across the world and the rise in demand for marketing analytics, various companies have collaborated with increased diversification among customers. For instance, in October 2022, Mercedes-Benz collaborated with Microsoft Corporation to boost efficiency, resilience, and sustainability in car production.
In addition, with further growth in investment across the world and the rise in demand for marketing analytics, various companies have expanded their current product portfolio with increased diversification among customers. For instance, in May 2022, Environics Analytics (EA) launched self-serve data analytics reporting platform, SPOTLIGHT which Offers as software-as-a-service, this easy-to-use tool is powered by EA’s industry-leading data and provides in-depth consumer and market insights for small businesses, financial advisors, realtors, and others to help optimize marketing initiatives to grow business. For instance, in October 2020, Cloudflare launched privacy-first analytics tools. The product is being marketed as an alternative to “popular analytics services available that were built to help ad-supported sites sell more ads” such as Google Analytics.
Moreover, with the increase in competition, major market players have started acquisition companies to expand their market penetration and reach. For instance, in April 2022, EY Canada acquired Gensquared Inc an information technology and services provider, Gensquared helps businesses tackle the biggest data and analytics challenges with a business-centric approach allowing clients to gain more meaningful and actionable insights. Furthermore, this acquisition strengthens EY Canada's Data, Analytics, and AI practice, helping to grow talent and resources, while evolving its suite of data and technology service offerings. For instance, in August 2022, Accenture acquired Romp, a brand and experience agency in Indonesia renowned for its creative talent and innovative services across branding, creative and performance marketing and helps to strengthen Accenture Song’s (formerly Accenture Interactive) ability to deliver creative and tech-driven brand experiences for clients across Southeast Asia.
All well-governed IT industries should be able to demonstrate due diligence to ensure regulatory compliance in applicable fields, including IT. Organizations are adopting AI to manage, store, and extract relevant and useful information from the data stored. Governments of many countries help to safeguard data privacy. For instance, in January 2020, the government of California launched Consumer Privacy Act, and additional governments across the world formalized requirements for how businesses can collect data from visitors on their digital products. As a result, marketers are having to do more personalization with less personal data. In addition, federal and state governments are improving their track plans for various privacy laws, which are applicable for data that participate in their operations. For instance, the Massachusetts Data Security regulations are majorly focused on security purpose and increasing the privacy of big data analytics. Europe is set to take the advantage of AI for providing data protection facilities to different organizations. For instance, the European Government adopted the new General Data Protection Regulation (GDPR). The act seeks to regulate the collection, storage, and processing of information about individuals. The key aim of GDPR is to protect critical data of consumers of the European nation. Moreover, organizations are adopting analytical software to deal with applying advanced technologies like artificial intelligence (AI), Machine Learning (ML) to automate processes and augmented human activity. For instance, California’s Online Protection Privacy Act provides explicit privacy rights and allows users to know how their information will be used in the future. Furthermore, the cloud security regulations are strongly adhered by all AI service providers to operate as global service providers, for instance, the U.S. security regulation is mandatory to be adhered by majority of players located in this country.
Top Impacting Factors
Increasing use of social media channels
The market is growing due to the increased adoption of social media channels and the rising demand for big data & AI in enterprises. In addition, social media analytics helps companies address and use social media platforms to spot trends related to offerings and brands. In addition, social media analysis platforms also help to track and analyze a range of data and interactions used in a variety of social media marketing use cases. Furthermore, several leading players are developing social media platforms to manage social media networks around the globe, which, in turn, boosts the growth of the market. Moreover, the increase in demand for network solutions for better work efficiency is expected to propel the growth of the market during the forecast period.
Rising use of big data analytics
The surge in demand for big data and AI among enterprises to provide higher data analytics services among industries and to replace traditional networking services for increasing the efficiency of organizations drives the growth of the market. Moreover, customer behavior research has shown that people like being labeled and are more inclined to participate if they feel included. Moreover, the increase in the use of social media software, big data, and AI among connected equipment companies across developing nations will drive the demand for marketing analytics software in the near future. In addition, wireless and smart devices provide unrestricted access by users to different service providers, which enhances the customer security and safety of various organizations, thus propelling the growth of the marketing analytics software industry.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global marketing analytics software market forecast along with current & future trends to explain the imminent investment pockets.
- Information about key drivers, restraints, & opportunities and their impact analysis on global marketing analytics software market trends is provided in the report.
- The Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The marketing analytics software market analysis from 2022 to 2031 is provided to determine the market potential.
Marketing Analytics Software Market Report Highlights
Market Size By 2031
USD 14.3 billion
CAGR of 13.9%
2021 - 2031
By Deployment Model
By Enterprise Size
By Industry Vertical
Key Market Players
Tableau Software LLC, Teradata Corporation, SAS Institute Inc., Oracle Corporation, Google, Improvado Inc, Accenture, ibm corporation, Adobe Inc., funnel.io
Marketing analytics software empowers marketers to make informed, proactive decisions around their marketing strategy. Actionable insights infer strategic and tactical next steps, which allow users to set marketing goals before they even start collecting any data. In addition, businesses of all sizes and across all industries can benefit from marketing analytics software as it empowers them to make better decisions about digital marketing strategies. Executive leadership teams expect a story behind metrics, or reasoning to back up marketing decisions. Marketing analytics tools enable a business to measure its key performance indicators (KPIs) and provide the reasoning to back up marketing choices. This results in a better understanding of what channels to use and why, along with effective resource allocation.
The global marketing analytics software market is expected to register high growth due to surge in demand for big data and AI among enterprises to provide higher data analytics services among industries and to replace traditional networking services for increasing the efficiency of organizations, which drives the growth of the market. Thus, an increase in the adoption of marketing analytics software, owing to rising demand for consumer data to understand needs & demands and the incremental use of technologies such as big data analytics & cloud computing factors drives the growth of the market. With surge in demand for marketing analytics software, various companies have established alliances to increase their capabilities. For instance, in June 2020, SAS partnered with Microsoft Corporation to enable customers to easily run their SAS workloads in the cloud, expanding their business solutions and unlocking critical value from their digital transformation initiatives.
In addition, with further growth in investment across the world and the rise in demand for marketing analytics software, various companies have expanded their current product portfolio with increased diversification among customers. For instance, in February 2021, pioneering digital signage company, Navori Labs launched new marketing analytics software that improves the customer experience in brick-and-mortar stores, shopping malls, restaurants, and more.
Moreover, with an increase in competition, major market players have started acquiring companies to expand their market penetration and reach. For instance, in January 2022, Unbounce, the leading conversion intelligence platform acquired LeadsRx, a marketing analytics SaaS platform that makes it easier for marketers and agencies to measure the performance of their marketing channels.