The global Digital Marketing software market size is estimated to be $1.98 billion in the year 2018 and it is expected to reach $5.05 billion by the end of 2025 with a CAGR (compound annual growth rate) of 14.0% during 2019-2025, according to Statista. The rising demand for digitization of business operations and trends such as Internet of Things (IoT), Cloud Computing, Big Data, Mobile Application Development, etc., are some of the factors driving this market.
Global digital marketing software market size will reach $1,906.75 million by 2024 from $714.61 million in 2018, at a CAGR of 12.2%. Increase in expenditures on digital marketing and incentive for leading marketers to invest in high-quality…
Digital Marketing Software Market Growth & Trends
The global digital marketing software market size is expected to reach USD 182.21 billion by 2028, registering a CAGR of 18.2% from 2021 to 2028. The growth can be attributed to the unabated transition from desktops to smartphones as the rapid increase in the number of smartphone users would expose more individuals to online ads. The demand for digital marketing software is expected to increase over the forecast period as smartphones and mobile devices continue to proliferate and communication and exchange of information continue to get more convenient and efficient than before.
The digital marketing software market has been evolving continuously in line with the advances in technology and the changing needs of the incumbents of various end-use industries and industry verticals, especially small and medium enterprises.Several vendors are striking strategic partnerships with end users and helping them in strengthening their digital marketing activities.
For instance, in May 2018, Marketo, Inc. announced a partnership with The Pedowitz Group, a revenue marketing consulting firm based in the U.S. in Atlanta, Georgia. The partnership was aimed at operationalizing business accountability, bringing about digital transformation, and enhancing the experience for mid-market manufacturing firms.
Customers are increasingly getting dependent on the latest, advanced technologies to ensure business continuity amid the challenges posed by the outbreak of the COVID-19 pandemic and the subsequent disruptions in supply chains, the growing preference for working-from-home policies, and the evolving customer expectations and preferences.As such, the economic uncertainties stemming from the outbreak of the pandemic are particularly prompting business software vendors and service providers to focus on pursuing customer service-driven strategies and assisting customers in their digital journey.
At the same time, brands are also switching from offline marketing to online marketing in the wake of the outbreak of the pandemic.
Market Overview
The digital marketing software market was valued at USD 26.37 billion in 2020, and is expecetd to reach USD 58.65 billion in 2026, recording a CAGR of 14.1%, during the forecast period (2021 – 2026). The market is segmented by deployment (on-premise, cloud), type (search engine software, content marketing software), industry (IT and telecom, BFSI), and region.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 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.
| DEPLOYMENT | |
| On-premise | |
| Cloud |
| TYPE | |
| Search Engine Software | |
| Content Marketing Software | |
| Social Media Marketing | |
| E-mail Marketing | |
| Mobile Marketing | |
| Marketing Automation Software | |
| Other Types |
| END-USER INDUSTRY | |
| IT and Telecom | |
| Media and Entertainment | |
| BFSI | |
| Retail | |
| Manufacturing | |
| Healthcare | |
| Other End-user Industries |
| Geography | |
| North AmericaUnited StatesCanada | |
| EuropeGermanyUnited KingdomFranceRest of Europe | |
| Asia-PacificChinaIndiaJapanRest of Asia-Pacific | |
| Latin AmericaMexicoBrazilRest of Latin America | |
| Middle-East & AfricaUnited Arab EmiratesSaudi ArabiaSouth AfricaRest of Middle-East & Africa |
Market USP exclusively encompassed:
Market Drivers
Digital marketing software enables companies to develop and improve their customer relationships using various digital marketing channels. Digital marketing software tools include e-mail software, web analytics, customer relationship management (CRM), and market automation software. These tools enable companies to enhance customer interaction through a variety of sources, such as social networking sites and instant messaging services.
Social media is presently a key area of focus for marketers. Social media has arisen as an efficient way to communicate with a large number of customers in a very short time. Social media advertising is a major platform and has been on the rise since the launch of social networking and professional tools like Facebook, Instagram, YouTube, Skype, Google+, Twitter, and LinkedIn, which have introduced new ways to communicate with customers. Social advertising allows marketers to build a strong brand presence across different target groups of customers. All industry verticals are entirely dependent on social media for their communication and marketing mix, regardless of the budget and size of the organization. There has been a clear interest in integrating digital marketing tools such as e-mail marketing, web analytics, campaign management, and content management with social media applications across the globe. It is reported that people spend the most on social networking sites; hence, marketers are concentrating on creating new advertising products. Social advertising, location-based advertising, and video advertising have gained enormous popularity in recent years, enabling marketers to leverage social media via increased users and subscribers. This segment has the great potentials to be one of the most promising drivers of the DMS market.
However, security is a big concern while executing digital enablement technologies. As IoT and cloud become more common, companies will need more security and privacy to prevent breaches. The issue of security has an effect on the advancement of digitalization. With a growing number of IoT-enabled digital systems, the number of security and privacy concerns is also estimated to increase, and every endpoint, gateway, sensor, and smartphone will become a possible target for hackers. Data privacy and security is an obstacle that needs to be addressed effectively. Other security issues such as hijacking accounts, insider threats, insecure Application Programming Interfaces (APIs), malware injections, shared vulnerabilities, and data loss is more common in cloud-based DMS. Enterprises have a vast data repository containing essential consumer and business data; any kind of cyber-attack on such a repository can result in a major loss to the business. These security concerns related to data access by unauthorized users could also risk enterprise data security and competitive business position.
Conclusion
Digital has evolved beyond marketing associated with technology companies; it is everywhere today, distorting the way businesses work, and the way consumers live. The digital marketing software market size is projected to grow at a 14% CAGR between 2017 and 2025 to be worth more than $60 billion by 2025