The Web Analytics Market was valued at USD 3.01 billion in 2020 and is expected to reach USD 7.05 billion by 2026, at a CAGR of 15.2% over the forecast period 2021 - 2026. The global web analytics market is anticipated to gain momentum from the steady rise in marketing automation and online shopping trends. The increasing awareness about the effective utilization of large chunks of unorganized, random data, and improving the performance of web analytics solutions are expected to create enormous opportunities in the market.
- Web analytics provides real-time data regarding consumer behavior and reveals insight that is buried in the data of each and every interaction. Furthermore, the number of online consumers worldwide is increasing at a significant rate, especially in emerging economies, where according to ASSOCHAM, online shopping is expected to witness an annualized growth of over 115%.
- The retail sector, especially e-commerce operations, is expected to be the major demand for mobile analytics solutions closely followed by the banking sector. Increasing demand for automation in the BFSI sector and efforts of the e-commerce companies to create personalized shopping experience are expected to draw huge revenues to the web analytics market globally.
- Customers' interests, buying habits, and past interactions can be combined to give the sales teams a pool of data to analyze and filter down the likely targets. This has allowed marketing to be more efficient and enable companies to build highly-targeted content. Such measures help the business reduce the operational cost of acquiring new customers by maintaining better customer retention. Better client connectivity also results in better feedback on the digital world that adds to brand value.
- For instance, Starbucks and Netflix are already up and running with recommendation engines that use AI and ML to create hyper-personalized experiences for customers. The growth of predictive personalization is paving the way to the future and has resulted in more personalized content suggestions though mass customization strategies for specific strata of clientele.
- With the outbreak of COVID-19, there is a surge in digital traffic, hence driving the market demand. For instance, according to Contentsquare's analysis which is based on 5.2 billion sessions and 25 billion page views during the last 12 weeks of 2020, from January 6 to March 29 shows a 6.9% increase in traffic, 11.8% increase in page views, 12.4% increase in transactions and a 3.6% increase in conversion rates. Moreover, web analytics has become an essential need for businesses as organizations are looking forward to optimize their digital processes to meet their business goals flawlessly.
Key Market Trends
Retail Sector to Dominate the Web Analytics Market
- The retail market has gone through a drastic change from physical stores to online sales platforms. With the advancement of the internet and the freedom to access it from anywhere, brick-and-mortar stores have turned into digital retailers, and a new breed of e-retailers have emerged. This new e-retailing option provides users access to a kind of virtual mall, at their fingertips. This rapid digitization urges retailing sectors to reach out to mass audiences and customers and provide access to products and brands worldwide.
- According to the US Census, the e-commerce boom that is revolutionizing the retail sector is expected to boost retail sales significantly. According to the US Census Department, US retail sales rose by 0.2% in November 2019, and online sales increased by 11.5%. The growth in e-commerce retail sales is further expected to increase the need for automated marketing procedures. A similar trend has been observed in the developing nations in the Asia- Pacific region, with growing e-commerce space.
- Using POS systems, social media interactions, and online shopping patterns, retailers gain a deep understanding of how to model their stores, add inventory to their warehouse and reach more individuals.
- Hence, the right customized web analytics tools and people are expected to help perform analysis and identify problems specific to the product offering, shopping experience, and checkout flow, as analytics has been an integral and strategic part of the planning and tagging process.
- Moreover, in August 2019, Microsoft acquired marketing automation vendor PromoteIQ. PromoteIQ works with brand manufacturers and e-retailers to run brand-sponsored ads for products on such retailer sites as Kohls and Overstock.com.
North America to Lead the Market
- North America is expected to continue to dominate the web analytics market with innovations, as most of the major global vendors are based in the region. The increasing marketing services investment, coupled with an enormous social media presence, makes the country a lucrative hub for the market studied.
- Moreover, some of the significant factors, such as the growing adoption of SaaS cloud services, increasing demand for data integration services, and expanding 5G network coverage, are estimated to provide a massive scope for the market studied in the region.
- The increasing demand for digital marketing, increasing approval of automation tools in multiple sectors, and rising demand to integrate marketing efforts are some of the dominant factors leveraging web analytics solutions in the North American region.
- According to the US Department of Commerce, the quarterly share of e-commerce sales of the total US retail sales in Q3' 2019 was 11.2% as compared to Q3's 2018, which was 10%. The substantial growth in e-commerce sales and retail sales in the region is expected to boost further the adoption of web analytics solutions in the region.
- Further, the increasing investments in AI and machine learning in the region are proving integral to future marketing automation products. Companies, like Amazon and Apple, are leveraging artificial intelligence to conduct voice-based marketing through devices like Alexa and Siri platforms. This is further expected to enhance the development of the market.
The market is mildly concentrated with the presence of many players working in national and international boundaries. The players adopt strategies, like product innovation and mergers and acquisitions in the market to stay ahead of the competition. The major players in the market are Google, Microsoft Corporation, Facebook Inc., Adobe Systems, among others. Some of the key developments in the market are:
- June 2020 - IBM completed its agreement with Spanugo, a US-based provider of cloud cybersecurity posture management solutions. This acquisition will integrate Spanugo software into its public cloud, and it supports IBM to provide highly reliable and secure services to its customers.
- September 2019 - App Annie, a mobile market data and analytics company, announced that it had acquired mobile analytics company Libring. With the acquisition, the company will offer market data and advertising analytics side by side, making it much easier for mobile publishers and brands to create seamless mobile experiences. The company also revealed its plans for a significant redesign of the brand to mark the first step in its expanded strategic vision and reflect its commitment to be the mobile performance standard.
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