Digital Marketing Software Market - Growth, Trends, and Forecasts (2022 - 2027)

The digital marketing software market is expected to record a growth rate of CAGR of 14% during the forecast period. The digital marketing share in the overall marketing budget of organizations and real-time marketing is on the rise, owing to the increase in significant importance of digital marketing, which increases the need for digital marketing software. Buyers today are more empowered than ever and are using Omni-channels to buy a product.

Key Highlights

• A recent study by Google found that 48% of consumers start their inquiries on search engines, while 33% search brand websites and 26% search within mobile applications. Businesses are ready and willing to engage with their customers on every digital platform with different devices, using digital marketing software, where habits can be tracked and analyzed.
• The proliferation of Big Data analytics in digital marketing and the increasing ease of purchasing by removing location constraints are expected to create opportunities for market growth. Social CRM solution is expected to garner high significance over the forecast period as organizations try to engage with customers on social sites, such as Facebook and Twitter, to publicize the brand and product.
• However, the lack of skilled labor in handling marketing software is expected to restrain the market growth. The shortage of qualified working professionals has resulted in a high fixed cost of software development.
• To keep businesses updated with the recent technological disruptions worldwide, marketing managers are strategically spending on automating their marketing processes and solutions to adopt the latest digital marketing trends. From social media marketing to SEO or content marketing, marketing managers are investing significantly to support and boost their sales. According to a published article by Advertising Age, in 2021, the full marketing services spending may amount to an estimated sum of USD 250.7 billion, out of which the majority was attributed to sales promotion.
• As the pandemic forced everyone at home most of the time, online shopping gained importance for both essential and non-essential items. However, with difficulty getting delivery time slots for groceries and slower shipping times for most items, there has also been a spike in ABM (Account-based marketing) solutions to personalize and enhance customer service through calls and interactions.

Key Market Trends

Email Marketing to Hold a Significant Market Share

• Email marketing is one of the primary marketing channels, considering the number of email users is close to 3.5 billion. Businesses across the world have utilized email marketing. Broadcasting an email to a potential client or consumer that could help in closing the sale is considered email marketing.
• Generally, email marketing involves sending advertisements, and newsletters, soliciting sales, requesting donations, and requesting 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 services has grown in the previous decade, improving email marketing reach.
• 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.
• Cybersecurity poses the biggest concern, as more email accounts are compromised by phishing scams and malware contained in email attachments. As a result, consumers are less confident in email marketing, and legitimate emails may be permanently reported or blocked.

Asia-Pacific to hold a Major Market Share

• The rise in internet penetration in countries such as India and China has brought a significant region population online. This is expected to result in a profitable opportunity for digital marketing.
• The factor mentioned above is set to result in a growth of social media presence, leading to a surge in social media-based marketing campaigns.
• Over the last few years, India has evolved into a market remarkably suited for investment in the digital space, particularly for consulting firms that assist with transitioning to the digital sphere.
• As the Digital India strategy continues to take shape, it is very clear about a "cloud first" approach. The initiative aims to move legacy and on-premise systems to a cloud-based or integrated model. This initiative would result in the country's cloud-based digital marketing software adoption.
• Startups from developing countries are slowly expanding operations onto the global battlefield through investments from players intending to herald their growth. For instance, in January 2022, The Moon Carl acquired April and June Digital Private Limited, a digital marketing agency based in Pakistan that dabbles in delivering high-end multinational e-commerce, web development, app development, and full-spectrum digital marketing solutions.

Competitive Landscape

The digital marketing software market is highly competitive and consists of several major players. Companies are increasing their market presence by securing new contracts and tapping new markets.

• In January 2021 - Mastercard launched digital acceleration of small businesses microsites across most of its Asia-Pacific websites with information on digitizing and running businesses efficiently, focusing on e-commerce platforms, digital marketing services, cybersecurity, and tools to reduce vulnerabilities.
• In January 2021 - Bloomreach announced a USD 150 million investment and the acquisition of a CDP (Consumer Data Platform) and Marketing Automation Provider Exponea. Bloomreach majors in commerce experience, with deep product data and AI to help people find the right product and deliver great experiences on e-commerce sites. The astonishing growth of e-commerce and digital marketing over 2020 led to this decision.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support