The practice of acquiring and evaluating data from social networks like Facebook, Instagram, LinkedIn, and Twitter is known as social media analytics. Marketers frequently use it to track online conversations about products and companies. In 2021, the global social media analytics market was valued at US$5.41 billion, and is probable to reach US$30.86 billion by 2027.
Growing popularity of mobile e-commerce, need for improvising on customer services, their cost-effectiveness, easy availability, rising usage of text analysis for improving customer experience and development of image analysis solutions would impact demand for social media analytics in the coming years. The social media analytics market is projected to grow at a CAGR of 33.75%, during the forecast period of 2022-2027.
Market Segmentation Analysis:
By Deployment Type: The report splits the global social media analytics market into two deployment types: On-Premises and Cloud. Cloud social media analytics market is anticipated to grow at the highest CAGR in the future as it is extremely cost-effective and can be used to store data and perform analytics, thereby expanding the growth. The market would be driven by increased storage capacity, enhanced performance of the internet, and provide further improvement in cloud services.
By Component: The report divides the global social media analytics market into two components: Services and Software. Services segment held the maximum share of 65% in the global social media analytics market. The growing adoption of social media analytics across all major verticals, such as BFSI, telecom and IT, retail and e-commerce, health care and life science, etc. is primarily boosting the demand for social media analytics services in the market. Whereas, the solutions segment is expected to hold a larger market share during the forecast period mainly due to adaptation by industries vertically which not only includes private players for advertisement purposes but also includes pharmaceutical industries, health and lifestyle, media industry, telecom industry, etc.
By Region: According to this report, the global social media analytics market can be divided into five major regions: Asia Pacific, North America, Europe, Latin America and Middle East and Africa. The North America social media analytics market enjoyed the market share of 38% in 2021, primarily owing to high adoption of digital technologies among individuals, rising social media penetration especially among teenagers and young adults, and the growing adoption of software as a service (SaaS) model platform. While the US continues to be a prominent region of North America social media analytics market, accounting for the adoption of different analytical solutions and the rising penetration of social media.
Global Social Media Analytics Market Dynamics:
Growth Drivers: Data generation is skyrocketing, interaction with the outside world becoming increasingly complex with new media platforms. With growing data creation, the companies can get better insights about consumers. Such insights can provide valuable input used for decisions involving, for example product development, which enable markets to expand and may lead to a competitive advantage. Further, the market is expected to increase due to growing influence of social media, rising number of internet users, increasing number of smartphone users, growing digital advertisement spending, etc.
Challenges: Social media data, if not preserved carefully by the companies, may give rise to data compromised issues which may impact the trust and reliability among the stakeholders of the social media analytical company. An attacker could exploit social media data as vulnerable to access sensitive data. Some other challenges that social media analytics market face are lack of standard measures for social media analytics, complexities in analytical workflow and harsh regulations, etc.
Trends: A major trend gaining pace in social media analytics market is rising adoption of 5G connections. The advent of the 5G network would facilitate applications of new infrastructure investment. 5G would also change the way social media data is analyzed. Both consumers and brands will have access to 5G technology, and that will have a multiplying effect. More trends in the market are believed to augment the growth of social media analytics market during the forecasted period include surge in adoption of cloud computing, integration of artificial intelligence (AI) with social media analytics software, growth in data analytic services, increasing adoption of internet of things (IOT), etc.
Impact Analysis of COVID-19 and Way Forward:
The COVID-19 pandemic has had a favorable impact on the worldwide social media analytics market’s growth. People began using social media tools to communicate around the world during the COVID-19 pandemic. People stayed at home due to the lockdown, and social media platforms were congested at the moment. Many governments, public officials, and hospitals used social media platforms to interact with the public and disseminate knowledge about infectious illness safety and actions to be done.
Competitive Landscape and Recent Developments:
The social media analytics market is fragmented with the presence of a large number of players dominating worldwide. Key players of the social media analytics market are:
Alphabet Inc. (Google)
Cision Ltd. (Brandwatch Company)
In May 2022, Sprout Social announced its partnership with TikTok as a part of TikTok marketing partner program. It will launch first-of-its-kind integration that allows Sprout users to grow their video strategy. Also, in February 2021, Cision acquired Brandwatch for US$450 million, which has helped create strong media monitoring and contact databases. This acquisition combines two large players who offer a wide range of services from PR to marketing and social media engagement, making it a PR, Marketing, and social listening giant.