Digital Marketing Software Market

Digital Marketing Software Market Outlook 2031

The global digital marketing software market size was valued at USD 65.33 Billion in 2022 and is projected to reach USD 322.22 Billion by 2031, expanding at a CAGR of 19.4% during the forecast period 2023 - 2031. The growth of the market is attributed to the increasing inclination toward location-based advertising, video advertising, and social media advertising.

Digital marketing software enables companies to build and improve their customer relationship using various digital marketing channels. The digital marketing software tools include email software, web analytics, customer relationship management (CRM), and market automation software. These tools allow companies to enhance their customer interaction through various sources such as instant messaging services and social networking sites.

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The advent of the digital era has encouraged organizations to adopt various business strategies and operations. Digital marketing is an effective tool that helps companies to connect with various stakeholders in the market through multiple channels such as instant messaging, email, and social networking.

The digital marketing software allows companies to improve their customer engagement through various channels such as social networking, mobile apps, and instant messaging. Additionally, it helps companies to integrate multiple channels and analyze their real-time advertising campaigns.

The ongoing advancement in the digitalization enables marketers to connect with customers directly and enhance their user experience by proving customized solutions. The intensified market competition has resulted in evolution of marketing strategies. Companies are now focusing on customer satisfaction and retention than just selling products and services. Consumer behaviour and preferences are analyzed by collecting the data through digital marketing campaigns. Consumer’s buying preferences are recognized by utilizing collected data and are further customized to improve the marketing campaigns results.

Digital marketing companies have large repository of data, which constitutes business and consumer’s data. However, the vulnerability in the security of the vital data can negatively impact the digital marketing market. Thus, companies are focusing on enhancing the security of digital marketing software, which is expected to spur the market growth. For instance, in August 2018, Adobe Systems Incorporated announced the update of its email marketing platform, having capabilities such as dynamic reporting, engagement insights, and enhanced security.

The second wave of the COVID-19 pandemic has persuaded people to stay home, which has increased Internet consumption. Companies are changing their marketing strategies to stay ahead of their competitors. On the other hand, governments across the globe have mandated people to stay at home, thus people are socializing through online networking. This, in turn, are rising the digital marketing activities around the world.

Digital Marketing Software Market Drivers, Restraints, Trends, and Opportunities

• Increasing adoption of location-based advertising services by retailers to offer consumers with personalized offers, discounts, and products, is expected to boost the demand for digital marketing software during the forecast period. For instance, visitors entering a mall or shopping center, automatically receive messages on their mobile devices, notifying them about various discounts and offers.
• Growing penetration of smartphones and the presence of robust network infrastructure are driving the demand for mobile advertising solutions across the globe.
• Rising penetration of Internet & social media platforms and increasing spending on digital marketing are boosting the adoption of digital marketing software.
• The emergence of security concerns due to the data access by unauthorized users can restraining the digital marketing software market growth. For instance, issues such as use of insecure application programming interfaces (APIs), rising malware injection, and social engineering attacks are common in cloud-based digital marketing software.
• The COVID-19 pandemic has resulted in the cancellation of various marketing events and is expected to encourage marketers to explore digital alternatives. Companies are focusing on delivering personalized experiences to its consumers, which is expected to fuel the adoption of digital marketing platforms.

Scope of Digital Marketing Software Market Report

The report on the global digital marketing software market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Global Digital Marketing Software Market Segment Insights

CRM software segment to represent a significant market share.

On the basis of solutions, the digital marketing software market share is bifurcated into CRM Software, email marketing, social media, search marketing, content management, marketing automation, campaign management, and others. The CRM software segment is expected to represent a significant market share during the forecast period.

CRM software provides benefits such as the ability to manage customer interactions at optimal levels and the capability to handle large businesses and client information. CRM helps enterprises to have effective conversation with their customers and helps to convert consumer data into insightful data. Growing demand from enterprises to automate sales, customer retention, and customer acquisition processes, is projected to fuel the segment growth.

Additionally, the integration of CRM suites with neural network, allowing companies to arrange the unstructured contact data such discussions, connections and potential customers is expected to spur the segment growth.

The social media segment is anticipated to expand at a healthy CAGR during the forecast period. Increasing usage of social media platforms such as Facebook, Instagram, Snapchat, Pinterest, and Twitter from the e-commerce sector to promote their products is a key factor driving the segment growth.

Moreover, incorporation of technologies such as artificial intelligence (AI) and big data analytics into social media platforms has boosted the growth of the social media segment. Meanwhile, growing usage of social media has altered the channels through which organizations build customer relationships. For instance, chatbots, a software application, is utilized to collect, analyze and visualize consumer related data.

Professional services to constitute a considerable market share.

Based on services, the digital marketing software market share is segmented into professional services and managed services. The professional services segment is anticipated to constitute a considerable market share during the forecast period. The consistent need for skilled and accomplished personnel to facilitate in installation, troubleshooting, and management of the software is boosting the demand for professional services in the market.

Professional services help the users in diminishing the security gaps and improves the security measures required for the deployment of digital marketing software. Professional services help in reducing administrative expenses, increases the the utilization of resources, and improves profitability . Furthermore, professional services assist in improving resource management by increasing efficiency through better planning, integrated knowledge management, and increased collaboration.

The managed services segment is projected to expand at a substantial CAGR during the forecast period. Managed services provide features such as remote monitoring and cost-effective management of IT infrastructure through subscription-based pricing models. Retailers are facing growing security threats owing to the increasing momentum of Internet of Things (IoT) in the retail sector.

Therefore, companies in the retail sector are inclining toward adoption of managed services to manage the expanding database of enterprises. Moreover, increasing demand for cloud-based managed services and rising dependence of organizations on IT assets to enhance their business productivity, are driving the segment growth.

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Cloud segment to account for a large market share.

In terms of deployments, the digital marketing software market share is bifurcated into cloud and on-premise. The cloud segment is projected to account for a large market share during the forecast period. The deployment of digital marketing software through cloud adds flexibility and allows customization of products and services on a large scale.

This factor is expected to boost the segment growth during the forecast period. Additionally, it helps in improving cost structures and helps to set up a control center to monitor, coordinate, and arrange various components of the digital marketing campaign. It allows company to have effective control over various campaigns operated through multiple locations.

The cloud deployment helps to improve process visibility and facilitates better decision-making, improves process efficiency, and ensures a prompt digital marketing campaign analysis. Furthermore, it allows organizations to use various hosting infrastructure and virtual cloud servers. This, in turn, can help organizations to reduce the cost related to installation of digital marketing software and hardware infrastructure.

The on-premise segment is estimated to expand at a high CAGR during the forecast period. Security benefits offered by the on-premise deployment model is driving the segment growth. On-premise deployment model does not require an Internet connection and is majorly adopted by various organizations owing to its easy customization of software as per the client’s requirement.

Additionally, it can be directly installed on the user’s computer or server, enabling them to retain the design data on their system. On-premise deployment model is more favored in highly regulated industries or sectors such as BFSI and healthcare.

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BFSI segment to acquire a large market share.

On the basis of end-uses, the digital marketing software market share is divided into automotive, BFSI, education, government, healthcare, manufacturing, media & entertainment and others. The BFSI segment is estimated to acquire a large market share during the forecast period.

This segment is expected to expand at a significant growth rate owing to the extensive use of digital marketing software to increase their customer base. In the BFSI sector, CRM software enables a unified view of each customer profile, which makes it possible to deliver personalized services to individual customers.

The media and entertainment segment is expected to expand at a healthy CAGR during the forecast period. Media and entertainment companies are focusing on development of online advertising strategies. Companies such as Netflix, Inc., Star India, and The Walt Disney Company are extensively using social media advertising to attract a large number of consumer base.

Large enterprises segment to constitute a considerable market share.

Based on enterprises, the digital marketing software market share is bifurcated into large enterprises and Small & Medium Enterprises (SMEs). The large enterprise segment is expected to constitute a considerable market share during the forecast period. the rising adoption of digital marketing software such as CRM, email marketing and content management to efficiently manage the vast databases of customers, is boosting the segment growth.

CRM software is more favored among large enterprises as it helps them to track their investment returns and enhance the efficiency of their sales cycle. Furthermore, large enterprises in sectors such as automotive, healthcare and hospitality, are favoring the adoption of marketing automation software for tasks such as customer lifecycle marketing and lead generation management. This is expected to boost the growth of the segment.

The small and medium enterprises are expected to expand at a healthy CAGR during the forecast period owing to the increasing number of small and medium enterprises in countries such as China, India and Singapore. The role of government in the funds provision for the adoption of digital marketing software is expected to boost the segment growth during the forecast period.

The lower deployment costs of cloud-based software are attracting small and medium enterprises, which is expected to fuel the growth of digital marketing software market. Small and medium enterprises are extensively adopting cost-effective online advertising strategies to stay ahead in the rapidly evolving business environment and to gain a competitive edge in the market.

North America market to account a significant market share.

In terms of regions, the digital marketing software market share is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is projected to account for a significant market share during the forecast period. This is owing to the growing consumer preference for online shopping.

Companies are investing in digital marketing solutions to find a broader target audience to promoting their content and market their products and services online. This is expected to drive the regional market growth during the forecast period. North America region is home to a large number of players in the market, such as Oracle Corporation, IBM Corporation, and Microsoft Corporation, which is prompting the market growth in this region.

The market in Asia Pacific is expected to expand at a substantial CAGR during the forecast period. High population density and proliferation of Internet and growing adoption of smartphones are expected to drive the regional market growth. Rising number of smartphones users using social media is anticipated to create remunerative opportunities for online advertising. Growing awareness of digital marketing software in the region through campaigns such as Digital Marking Summit Asia is projected to boost the market growth in Asia Pacific.

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Segments

The global digital marketing software market has been segmented on the basis of

Solutions

• CRM Software
• Email Marketing
• Social Media
• Search Marketing
• Content Management
• Marketing Automation
• Campaign Management
• Others

Services

• Professional Services
• Managed Services

Deployments

• Cloud
• On-premise

Enterprises

• Large Enterprises
• Small & Medium Enterprises (SMEs)

End-uses

• Automotive
• BFSI
• Education
• Government
• Healthcare
• Manufacturing
• Media & Entertainment
• Others

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Adobe, Inc.
• Hewlett Packard Enterprise Company
• Hubspot, Inc.
• IBM Corporation
• Marketo, Inc.
• Microsoft Corporation
• Oracle Corporation
• Salesforce.com, Inc.
• SAP SE
• SAS Institute, Inc.

Competitive Landscape

Key players in the market include Adobe, Inc., Hewlett Packard Enterprise Company, Hubspot, Inc., IBM Corporation, Marketo, Inc., Microsoft Corporation, Oracle Corporation, Salesforce.com, Inc., SAP SE, and SAS Institute, Inc.

Industry participants are focusing on updating their existing products and launching new products. For instance, in November 2017, Salesforce.com, Inc. announced the launch of Sales Cloud Einstein Forecasting CRM software that uses a self-learning algorithm to offer sales forecasts and optimize the advertising strategies.

Market players are heavily investing on business strategies such as collaborations, partnerships and acquisitions. For instance, in September 2017, Oracle Corporation collaborated with Tencent , a leading social media company known for its WeChat Social media platform. The collaboration enables Oracle Corporation’s clients to use their digital marketing software to deliver personalized advertisements to its potential customers.