Marketing Analytics Software Market Trends, Size, Share & Forecast | 2031 (2024)

Marketing Analytics Software Market size was valued at USD 3.9 billion in 2021 and is poised to grow from USD 4.44 billion in 2022 to USD 12.58 billion by 2030, growing at a CAGR of 13.9% in the forecast period (2023-2030).

The increasing drive to establish a stronger market foothold and comprehend consumer preferences is anticipated to propel the adoption of marketing analytics tools and solutions among organizations and institutions. Leveraging marketing analytics aids companies in gaining deeper insights into the performance of their marketing campaigns and facilitates comparative analysis to identify the most effective strategies. This involves assessing critical business metrics like marketing attribution, overall campaign effectiveness, and Return on Investment (ROI).

Cloud computing technology emerges as a significant catalyst for market growth. Large enterprises operate across multiple marketing channels, generating extensive datasets. Cloud computing enables marketers to efficiently organize and analyze both structured and unstructured data using marketing analytics platforms in a cost-efficient manner. The rising popularity of cloud-based marketing analytics software is driven by its enhanced functionality and cost-effectiveness, prompting industry leaders like Oracle Corporation and Adobe Inc. to offer cloud analytics solutions to marketers.

The rapid proliferation of social media platforms further opens avenues for market players. Prominent platforms like Facebook and Instagram provide marketers with novel channels to showcase their products. These platforms amass substantial user data, including demographic information and preferences, which can be effectively harnessed to comprehend consumer buying behaviors. Both small and medium-sized enterprises (SMEs) such as Zulily, LLC and RealEats, as well as larger corporations like TGI Fridays Franchisor, LLC and Subway IP LLC, have adopted marketing analytics solutions, contributing to improved product offerings and refined business operations.

US Marketing Analytics Software Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2023-2030

The marketing analytics software market is segmented by Application, Deployment, Organization Size, Industry Vertical, and Regional. We are analyzing the market of these segments to identify which segment is the largest now and in the future, which segment has the highest growth rate, and the segment which offers the opportunity in the future. Based on Application the market is segmented as, Social Media Marketing; Email Marketing, Search Engine Marketing, Content Marketing, and Others. Based on Deployment the market is segmented as, On-premise, and Cloud. Based on Organization Size the market is segmented as, SMEs, Large Enterprises. Based on industry vertical, the market is segmented as, Retail, Consumer Goods, Industrial, BFSI, Media & Communication, Healthcare, Others. Based on Regional the market is segmented as, North America, Asia Pacific, and Latin America.

Marketing Analytics Software Market Analysis By Application

In 2022, the social media marketing segment took the lead by contributing to a substantial revenue share of more than 30.0%. This prominence can be attributed to the extensive usage of social media platforms in emerging economies like India, Indonesia, and Brazil. The availability of affordable internet packages has extended internet access to previously unreachable areas, empowering marketers to discern people's requirements and devise tailored marketing campaigns. Social media marketing facilitates enhanced customer relations and more efficient competition monitoring, achieved through meticulous analysis of consumer engagement trends. Consequently, the adoption of social media marketing strategies has gained widespread momentum.

Another significant contributor in 2022 was the e-mail marketing segment. Its effectiveness in directly reaching a wider audience and fostering deeper relationships underpins its role. Despite the comprehensive audience data offered by social media marketing, e-mail marketing boasts a superior conversion ratio as diverse advertising campaigns can be designed for distinct demographic segments. People often subscribe to preferred brand e-mail lists, presenting marketers with opportunities to elevate engagement rates, enhance brand awareness, and amplify revenue generated through marketing endeavors.

Marketing Analytics Software Market Analysis By Development

The cloud deployment category stood out by contributing to a major share of over 73.0% in 2022. Small and Medium Enterprises (SMEs) find the cloud deployment model preferable due to its ability to offer marketing analytics software benefits without necessitating changes to the existing IT infrastructure. Moreover, this model grants organizations the flexibility to opt for public, private, or hybrid cloud configurations based on their marketing teams' specific needs. Cloud-based marketing analytics software also enhances scalability and data analysis flexibility, thereby propelling growth within the marketing analytics software market.

In 2022, the on-premise segment also held substantial significance due to the heightened security and control provided by on-premise data centers. Opting for on-premise deployment enhances data accessibility for marketing teams, enabling outcomes to be tailored according to end-users' requirements. This approach encourages companies to hire specialized expertise, thereby ensuring high-quality outputs. Additionally, the on-premise deployment model empowers users to customize their software in line with their marketing teams' unique needs, facilitating desired outcomes.

In 2022, North America established its dominance in the market by contributing to a significant revenue share of over 46.0%. This prominence is attributed to the widespread trend of robust social media usage and the availability of high-speed internet services in the region. The prevalent adoption of social media platforms provides marketers with a highly effective channel for advertising and promotional activities. Additionally, the region's thriving e-commerce ecosystem enables marketers to leverage the data generated from e-commerce sales, offering valuable insights into customer buying preferences and facilitating the creation of targeted marketing strategies.

The realm of predicting customer behavior is complex, focusing on their purchasing patterns and decisions rather than precise outcomes. The analysis tools aim to determine what customers are more inclined to purchase in the future or less inclined to consider. The term "incremental" signifies attracting more customers to make purchases, thereby driving increased sales for marketers. Employing algorithms and calculations such as double delta calculations, data analysis tools categorize customers into new and repeat buyers, enabling the measurement of the promotional and non-promotional impacts of marketing campaigns. Key performance indicators (KPIs) like customer frequency, shopping patterns, consistency, response to marketing efforts, average units per month, and promotional sales mix aid businesses in assessing the influence of marketing strategies. Utilizing marketing analytics software, these metrics are tracked and subjected to various computations.

In 2022, Asia Pacific emerged as another significant contributor to the market's revenue share. This growth is attributed to the presence of crucial AI development hubs in countries such as Singapore, Vietnam, and Malaysia. The rise of startups offering AI-enabled analytics services has propelled regional market expansion. Additionally, the swift adoption of digital government initiatives in countries like Singapore and China has fostered a fertile ground for startups delivering analytics-based services and advanced technologies, further propelling regional market growth.

Marketing Analytics Software Market Drivers

Growing Demand for Data-Driven Marketing:

• The increasing emphasis on data-driven decision-making in marketing strategies is a major driver. Marketers are leveraging analytics tools to gain insights from large volumes of data, enabling them to understand customer behavior, preferences, and trends better.

Rise of Social Media and Digital Marketing:

• The expansion of social media platforms and digital marketing channels has generated vast amounts of data. Marketing analytics software helps companies analyze and make sense of this data to create more targeted and effective campaigns.

Marketing Analytics Software Market Restraints

Data Privacy Concerns:

• With the increasing use of customer data, data privacy and security concerns have become significant. Regulations like GDPR have led to stricter data handling practices, affecting how marketers collect and use customer data.

Price Volatility of Raw Materials:

• Poor data quality, incomplete data, and challenges in integrating data from various sources can hinder accurate analysis. Clean and integrated data is essential for meaningful insights.

The competitive landscape of the marketing analytics software market is characterized by intense competition among several key players aiming to capture a significant share of the growing market. Established global software giants, such as Adobe Inc., IBM Corporation, and Salesforce.com, are competing with innovative startups and specialized analytics solution providers. These companies are continuously investing in research and development to enhance their analytics capabilities and offer advanced features to meet the evolving needs of marketers.

Marketing Analytics Software Market Top Player’s Company Profile

• Accenture

• Adobe Inc.

• Google Inc.

• Funnel

• IBM Corporation

Marketing Analytics Software Market Recent Developments

• September 2022: To hasten client cloud transformation, CISCO partnered with Wipro Limited, a provider of technology services and consulting. Wipro customers will be able to deploy the service more quickly and with a better user experience by utilising Wipro FullStride Cloud Service to enable a fully automated hybrid-cloud stack. By combining the edge, private, and public clouds, this partnership will produce flexible public cloud solutions.

• June 2022: By offering managed cloud solutions to businesses around the world, Kyndrylan has partnered with Oracle to assist the company's move to the cloud more quickly. As a result of the alliance, Kyndryl will build on its extensive experience working with and supporting clients who use Oracle products and services by becoming a key delivery partner for Oracle Cloud Infrastructure (OCI).

Cloud-based to Witness High Growth:

• Since it enables them to use marketing analytics tools without changing their current IT infrastructure, many SMEs prefer using the cloud deployment strategy. According to the requirements of the marketing team, businesses can use public, private, or hybrid clouds thanks to the cloud deployment methodology.

• The growing adoption of hybrid and multi-cloud architectures, which enable consistent development and operation across cloud, on-premises, and edge environments, is what is driving demand for the cloud system management market. Initiatives for the optimisation and transformation of the digital world have been greatly helped by the cloud.

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

According to our global marketing analytics software market analysis, the marketing analytics software market is experiencing rapid growth driven by the increasing emphasis on data-driven decision-making and the need for businesses to understand consumer behavior and preferences. This software enables companies to measure the effectiveness of marketing campaigns, optimize strategies, and enhance customer engagement. The Asia-Pacific region, particularly China and India, is witnessing substantial growth due to the expanding digital landscape and rising adoption of analytics solutions. The market is segmented based on deployment models, applications, and organization sizes. Key drivers include the growing importance of personalized marketing, the rise of social media platforms, and the need to improve return on investment. As businesses across industries recognize the value of actionable insights, the marketing analytics software market is projected to continue its upward trajectory.