Digital Marketing Software and its Global Market Share
Hands up! How many of you use a piece of digital marketing software daily? Now, how many of you based your decision to use a piece of software because of its global market share? I am sure many of you put your hand down on that question. Still, market share is becoming a factor in businesses deciding which software to select, whether you are best-in-breed or a best-in-suite (more on that in another blog post). But, who controls the market? Let’s talk about that.
Top Key Takeaways from the Report
Biggest market drivers include social media channels that provide a platform to reach vast numbers of consumers and enrich their online experience.
The increased use of smartphones has made it one of the top mediums for digital advertising.
Emerging economies for expansion include India, China, and Brazil.
Increasing preference for online shopping through easy access is bolstering market growth.
The emergence of disruptive technologies such as big data, predictive analytics, and artificial intelligence (AI) is spurring growth.
What Makes up the Digital Marketing Software Market?
When we talk about digital marketing software—or DMS—we speak to the arsenal of tools which include email software, web analytics, customer relationship management (CRM), and market automation platforms.
The digital era and the widespread adoption of DMS have revolutionized the way we are doing business. The digital market allows businesses to execute strategies and increase efficiencies in various aspects of their business. It provides companies tools—or even channels—which they can use to enhance their success. This may include connecting with and strengthening its engagement with stakeholders in the market, analyzing and identifying customer behavior and performance patterns, personalizing your messaging, and optimizing the effectiveness of marketing activities.
The increased generation of information on the internet, along with the growing daily habit of social media, is signaling an increase in marketing budgets towards digital marketing activities by businesses is fueling the adoption of DMS.
DMS Market 2019 Global Share
According to the latest report by Market Research Future (MRFR), the DMS market is expected to yield a 19.4% compound annual growth rate (CAGR) from 2018 to 2025. In 2013, the DMS market was valued at around US$22.8 million. The global market is expected to expand its reach to a whopping US$119,077 million in the year 2025. MRFR conducted an in-depth review of the current DMS market and attributed its growth to the importance of providing businesses the tools or platforms on which to market their products and reach a wider audience.
The DMS Segments
The global DMS market, in its vast entirety, is broken down into various key parts based on type, application, and region. The DMS market can be split into two types:
Those two types of DMS markets can be further segmented into the following categories:
When looking at market share just based on type, software took the dominant position with its share being valued at US$4.68 billion. This growth can be attributed to the rapid and ever-evolving technology eco-system as well as businesses taking an active approach to being up-to-date with the latest technology across their system to keep an edge up over their competition.
Be that as it may, the services segment is holding the higher compound annual growth rate. This growth can be attributed to the industry evolution as well as the need for and adoption of digital marketing services, such as remote monitoring and subscription-based pricing models.
Taking a closer look at the market growth for each of the segments:
Interaction systems: a CAGR of 19.5%
Data and analytics system: a CAGR at 20.5%
Administration & management-oriented apps: a CAGR of 21%
The Top Key Players
There are several recognizable brands that fall within the topmost market players due to their competitive roles in the global DMS market. The top key players include:
Although there are several top main players in the market, there are several businesses that have regional and local power due to catering to a limited number of clients, creating a market that is, quite frankly, highly fragmented and intense with a competitive rivalry.
Market Growth Indicators
Specifically, the tremendous growth that this market is expecting is due to several key factors, which include:
The increasing number of mobile users.
The high penetration of social media.
The ability to target key demographics to increase sales.
The integration of artificial intelligence.
The role of big data analysis, including predictive analysis.
One of the lead factors is that of the high penetration of social media, as well as the ability to target key demographics through mediums such as advertising. DMS provides businesses the ability to enhance relationships and interactions with customers, thus increasing sales. The growth in the market share is paired with the explosion in social media and the ability to target specific demographics to expand and power sales.
However, like any growth, this can come with its challenges and complications. One example impacting the market is the lack of skilled personnel that is beginning to hamper the market’s progress. The DMS market is highly driven by consumers whose ever-changing behavioral wants and needs form the catalyst for change that creates a complex landscape.