Market Research Report
Marketing Automation Software Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||393815|
|Published||Content info||100 Pages
Delivery time: 2-3 business days
|Marketing Automation Software Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: April 1, 2019||Content info: 100 Pages||
The marketing automation software market was estimated at USD 5.10 billion in 2018 and is expected to be USD 14.15 billion in 2024, registering at a CAGR of 19.2% through the forecast period (2019-2024). Owing to the increasing significance of marketing in generating sales and customer retention, marketing services are witnessing a rise in their spending.
The GroupM, one of the world's largest advertising media company regarding billings, reported a surge in marketing services spending from USD 375.19 billion in 2012 to USD 457.07 billion in 2017.
In 2017, the Americas saw an 8% year-on-year growth in regional internet penetration. The United States contributed 22 million (nearly 25%) of the 88 million new social media users across the region in the past year. Thus, there arises an increasing need for improving customer experience, which is one of the major factors driving the market for marketing automation software.
The market is witnessing a shortage of skilled professionals who can guide users to get better results from web analytics solutions and can convert them into actionable insights and information.
In the United States, investments in the digital marketing companies in the region are pushing the market forward. For instance, PrintingForLess.com in 2018 raised investment from Goldman Sachs Growth Equity worth USD 25 million, which would primarily be used to expand the capabilities of CRM platforms and marketing automation.
Marketing automation refers to the software that exists with the goal of automating marketing actions. Many marketing departments have to automate repetitive tasks, such as emails, social media, and other website actions.
E-mail Marketing Expected to be a Significant Application
Email marketing is one of the primary channels of marketing, considering the number of email users, which is close to 3.5 billion. Businesses around the world have utilized email marketing. Broadcasting an email to a potential client or consumer that could help in closing the sale is considered as email marketing. Generally, email marketing involves sending advertisements, newsletters, solicit sales, request donations, and request businesses via emails.
Email marketing has evolved drastically over the past few years. With the advent of e-commerce and smartphones, the number of users utilizing email service had increased in the previous decade, which improved the reach of email marketing. With the vast amount of user data available, companies are focusing on automating the database to streamline the process and explore new ways of email marketing.
This has provided an opportunity for companies to explore automated email marketing. Gmail revealed that 68.4% of the incoming emails are classified as promotions (as of February 2017). Such figures emphasize the penetration of email marketing.
In October 2017, a global provider of email marketing and automation software, Aweber, introduced click automation to its e-mail automation platform. With this update, users can segment their audience (based on the links they click) and send more relevant emails to convert the leads into their conversion funnel.
China Expected to Witness Significant Growth
China is one of the digital marketing powerhouses. The country boasts of the world's second-largest search advertising market and spends more on digital advertising than Japan, Indonesia, Australia, and South Korea, combined.
The country is transforming the way businesses think about their marketing strategy. Due to its massive scale and unique consumer behavior, the Chinese market has forced firms to be creative about their marketing strategies, which also applies to market automation.
In China, more than half (57.2%) of advertisement expenditure went toward the internet in 2017, implying that the digital marketing landscape is more competitive than ever. Moreover, social media platforms, such as Weibo, WeChat, and Tieba, and search engines (Baidu) have launched advertising products focusing on people, targeting to increase marketing performance. Around 66% of the country's population uses WeChat, posing lucrative opportunities in the social media marketing sphere.
The country is witnessing an increase in advertising expenditure by organizations. For instance, according to GroupM, one of the world's largest advertising media company, the advertising spending in 2017 was USD 86.28 billion in China.
Although advertising expenditure in the country is relatively high with various industries adopting marketing strategies to gain recognition in the market, the number of companies adopting marketing automation software in the region is relatively low due to lack of awareness.
The marketing automation software market has several products available. 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.
Growing demand for marketing automation solutions is driving the huge investments in the industry, to develop new products. Large technological companies are aggressively pushing to acquire small tech companies, and gain an advantage.
The industry is witnessing many mergers and acquisitions. Thus, competition in the industry is intensifying significantly. Some of the key players in the market are Adobe, IBM, and Microsoft. Some key developments in the market are as follows:
Adobe acquired Magento Commerce, a market-leading commerce platform; the acquisition is expected to deliver a single, end-to-end digital experience platform, including content creation, marketing, advertising, analytics, and commerce for the B2B and B2C customers. The Magento platform brings together digital commerce, order management, and predictive intelligence to enable shopping experiences that scale for businesses of any size.
Marketo and Clari, an AI sales solution provider, announced a strategic partnership, designed to unite sales and marketing teams and accelerate deals, by providing a single, comprehensive view of the buyer's journey.