The digital marketing software market was valued at USD 23.37 billion in 2019, recording a CAGR of 14.1%, during the forecast period (2020 - 2025). 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 before and are using omni-channels to buy a product. In a recent study conducted by Google, it was 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. Shortage of qualified working professionals has resulted in a high fixed cost of software development.
Scope of the Report
Digital marketing is integral to businesses’ success in the era of engagement marketing. Promoting products, brands, and services, through online and mobile applications, is quickly becoming vital for the success of businesses.
Key Market Trends
Email Marketing to Hold a Significant Market Share
Email marketing is one of the primary channels of marketing, considering the number of email-users 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 as email marketing. Generally, email marketing involves sending advertisements, newsletters, solicit sales, request 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 service has grown in the previous decade, which has 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.
In August 2018, Adobe announced to update its email marketing platform capabilities, such as engagement insights, dynamic reporting capabilities, and new e-mail message designer. Additionally, the platform will also allow users to incorporate email marketing with other channels and content workflows. This is likely to attract more consumers, thereby, having a positive impact on the market growth over the forecast period.
Asia-Pacific to hold a Major Market Share
A rise in internet penetration in countries, such as India and China, in the recent years has brought a major population of the region online, which is expected to result in a booming opportunity for digital marketing. The aforementioned factor 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 the transition 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 model or integrate with it. This initiative is expected to result in cloud-based digital marketing software adoption in the country.
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 by tapping new markets. For instance, in 2018, Salesforce.Com Inc. introduced Datorama as a part of its marketing cloud. Datorama enables companies to bring together all of their marketing data from different channels, campaigns, and regions to unlock insights and take action on all marketing activities. With Datorama, customers, including brands and agencies, can understand the effectiveness of their marketing investments and optimize in real time. Further, in 2018, IBM Corporation and Colombia announced a partnership to leverage the IBM Watson, in order to expand regional language content promotion, implement state-of-the art cross-language recommendation systems over multiple media contents, text articles, audio, video, etc. Colombia had leveraged the IBM Watson’s Natural Language Understanding service to enrich content with additional features, such as named entities, categories, and concepts.
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