Updated date - Sep 29, 2019

[143 Pages Report] MarketsandMarkets forecasts the Digital Marketing Software (DMS) market to grow from USD 37.5 billion in 2017 to USD 75.0 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.9% during the forecast period. The major factors that are expected to be driving the DMS market are popularity of mobile advertising with increasing mobile devices and optimizing digital experiences to meet the changing customer preferences. The objective of the report is to define, describe, and forecast Digital Marketing Software Market size based on component, software, service, deployment type, organization size, industry vertical, and region.



Attractive Opportunities in the DMS Market



Source: Investor Presentation, Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis

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By software, CRM software is expected to hold the major market size during the forecast period

CRM plays an important role in any business process, as it holds and manages databases that are related to customers. The CRM software tracks customer's behavioral pattern and helps in sending personalized and automated messages. The evolving landscape of data across all business channels necessitated the usage of CRM for seamless business functionality. The CRM software also includes sales CRM which handles all the sales process starting from sales tracking to sales forecasting; this software takes care of entire sales process such as lead generation and qualification, real-time forecasting, sales stage and probability analysis, pipeline management, thereby converting prospects into sales opportunities. Marketers are in dire need of this software, and hence will invest significantly to boost their market revenue growth

By deployment type, the cloud-based deployment segment is expected to grow at the highest rate during the forecast period

Cloud-based deployment of DMS solutions is preferred by most of the organizations and is expected to be the fastest growing deployment model during the forecast period. The cloud-based deployment model permits users to access the software from anywhere on any type of devices, such as personal computers, laptops, smartphones, and tablets. The cloud adoption offers easy deployment, minimum cost, easy upgradeability, accessibility, and no requirement of initial capital outlay for purchasing the software. The cloud-based deployment model offers higher agility than the on-premises deployment model. As a result, many verticals, such as Banking, Financial Services, and Insurance (BFSI), healthcare and life sciences, government, Information Technology (IT) and telecom, consumer goods and retail, energy and utilities, transportation and logistics, and manufacturing are increasingly adopting cloud based DMS solutions.



By organization size, the SMEs segment is expected to grow at the highest rate during the forecast period

The Small and Medium-sized Enterprises (SME) segment is expected to grow at a higher CAGR during 2017�2022. The DMS solution allows small enterprises to expand their reach among customers at a low cost, improves conversion rates, and helps to generate higher ROI from digital campaigns. The ability of DMS solutions to create brand recognition, and fast interaction between a customer and an enterprise can significantly enhance an enterprise�s ability to record the revenue growth.

Source: Investor Presentation, Secondary Literature, Expert Interviews, and MarketsandMarkets Analysis



Asia Pacific (APAC) is expected to have high growth potential during the forecast period

Being the most populated region in the world, APAC is expected to have a huge growth potential pertaining to DMS adoption. Major countries in this region, such as Australia, Singapore, China, Korea, Hong Kong, and India are increasingly investing in DMS. However, this region demands skilled digital marketing professionals to close the skill gaps and adopt new digital technologies for better business operations. The growth in this region is primarily driven by the presence of half of the world�s mobile users, highest social media users, rising trend of online shopping experience, and increasing internet connection and speed. All these factors are contributing to the growth of the market in APAC.

Digital Marketing Software Market Dynamics

Driver: Growth of social media and social advertising



At present, social media is a key area of focus for marketers. Social media has emerged as an efficient way to connect with a large number of customers in a very short time. Social media advertising is a big platform and has been booming in leaps and bounds since the inception of social networking and professional tools, such as Facebook, Instagram, YouTube, Skype, Google+, Twitter, and LinkedIn, which have introduced newer ways of connecting to consumers. Social advertising enables marketers to build a strong brand image among various target groups of customers. In case of any problem with the product or service, social media applications offer opportunities to help customers immediately, thereby creating a strong brand loyalty. All industry verticals are completely focused on social media for their communication and marketing mix, irrespective of budgets and organization sizes. A strong trend of integrating digital marketing tools, such as email marketing, campaign management, web analytics, and content management, with social media application has been witnessed across the globe. It is estimated that people spend maximum on social networking sites; hence, marketers are focused on developing new advertising products. Social advertising, location-based advertising, and video advertising have gained significant traction in the recent years that enable marketers to leverage the social media, owing to its increased users and subscribers. This segment has the remarkable capability to be one of the most promising drivers of the DMS market.



Restraint: Security and privacy concerns for confidential data



Security is a major issue while executing digital enablement technologies. As IoT and cloud become more widespread, organizations would require more robust security and privacy to prevent breaches. The issue of security affects the success of digitalization. With the growing number of IoT-enabled digital systems, the number of security and privacy issues is also expected to increase, and every endpoint, gateway, sensor, and smartphone would become a potential target for hackers. Data privacy and security is a bottleneck that needs to be addressed effectively. The other security issues, such as the hijacking of accounts, insider threats, malware injections, insecure Application Programming Interfaces (APIs), shared vulnerabilities, and data loss, are more prevalent in cloud based DMS. Enterprises have a large data repository, containing important customer and business data; any kind of cyber-attack on such repository can be a major loss to the business. These security issues, related to data access by unauthorized users, could threaten the enterprise data security and competitive business position, as well.

Opportunity: Evolving need of AI and big data analytics in digital marketing

Artificial Intelligence (AI) is considered as the next technological revolution that would affect how companies interact with data and business processes. This technology builds data models automatically in digital forms and also collects data from multiple resources and uses the information as a knowledge store, which ultimately leads to a precise prediction about consumers� needs. AI is beginning to impact the DMS market, as most organizations are now focusing on leveraging AI-based applications for improving the customer experience. AI also helps organizations turn highly dissatisfied customers into loyal customers. For instance, CogniCor Technologies (Spain) uses AI to enhance its complaint resolution activities, which resulted in an increased level of customer satisfaction. Apart from AI, big data analytics, IoT, and cloud are other promising technologies that are likely to assist businesses in engaging better with customers and increase the customer satisfaction. With the rise in the adoption of IoT in multiple industry verticals, there is a need for creating, extrapolating, and utilizing actionable insights from the data generated through IoT devices. This is offering numerous opportunities for marketers to better understand customers� buying behavior and help optimize their brand experience. Therefore, in the next few years, the vendors offering AI, big data analytics, and IoT, as a key functionality in their DMS products, are likely to witness higher adoption across the globe.

Challenge: Integrating DMS tools with other business applications

Integration is one such factor that defines the clientele and users of the software. The buyer�s choice is highly dependent on the integration capabilities of the software with their applications. This integration helped marketers gauge the consumer behaviour across various channels and consumer database. However, big giants in this market, such as Oracle, Salesforce, IBM, and SAP, are following the organic strategy of acquiring marketing technology companies to deliver competing all-in-one marketing solutions. Budget constraints do not enable startup or smaller organizations to follow this organic strategy; hence, this issue is posing a challenge to this market, irrespective of vendors� all-out efforts in resolving this issue.



Scope of the Digital Marketing Software Market report

Report Metrics Details Market size available for years 2015�2022 Base year considered 2016 Forecast period 2017�20232 Forecast units Value(USD) Segments covered Component, Software, Service, Deployment Type, Organization Size, Industry Vertical and Region Geographies covered North America, Europe, APAC, MEA, and Latin America Companies covered It includes11 major vendors, namely, Adobe Systems Incorporated (US), Oracle Corporation (US), SAP SE (Germany), Salesforce.com, inc. (US), IBM Corporation (US), Marketo, Inc. (US), Microsoft Corporation (US), HubSpot Inc. (US), SAS Institute Inc. (US), Act-On Software (US), and SimplyCast (Canada).

This research report categorizes the DMS market to forecast revenues and analyze trends in each of the following submarkets:



On the basis of Component, the Digital Marketing Software Market has been segmented as follows:

Software

Services

On the basis of software, the DMS market has been segmented as follows:

Customer Relationship Management Software

Email Marketing Software

Social Media Advertising

Search Marketing Software

Web Content Management Software

Marketing Automation Software

Campaign Management

Video Advertising

On the basis of services, the Digital Marketing Software Market has been segmented as follows:

Professional Service Support and Maintenance System Integration Testing and Optimization Training and Education

Managed Service

On the basis of deployment type, the DMS market has been segmented as follows:

On-Premises

Cloud

On the basis of organization size, the Digital Marketing Software Market has been segmented as follows:

Large Enterprises

Small and Medium-sized Enterprises (SMEs)

On the basis of industry vertical, the DMS market has been segmented as follows:

BFSI

Transportation and Logistics

Consumer Goods and Retail

Education

Healthcare

Manufacturing

Media and Entertainment

Telecom and IT

Travel and Hospitality

Others (Energy and Utilities, Gaming, Real Estate, and Government)

On the basis of regions, Digital Marketing Software Market has been segmented as follows:

North America US Canada

Europe UK Germany Rest of Europe

APAC

MEA

Latin America

Key Market Players

Adobe Systems Incorporated (US), Oracle Corporation (US), SAP SE (Germany), Salesforce.com, inc. (US), IBM Corporation (US), Marketo, Inc. (US), Microsoft Corporation (US), HubSpot Inc. (US), SAS Institute Inc. (US), Act-On Software (US), and SimplyCast (Canada).



Adobe Systems, one of the leading providers of analytics, social targeting, media optimization, digital experience management, cross-channel campaign management, audience management, and video solutions was founded in 1982 and is headquartered in California US. Adobe Systems caters to digital marketing through its analytics solutions, such as Experience Cloud, Advertising Cloud, Analytics Cloud, and Marketing Cloud. Adobe Marketing Cloud offers Adobe Analytics, which provides various capabilities, such as predictive marketing, customer churn analysis, advanced segmentation, mobile analytics, marketing attribution, big data analytics, social analytics, audience optimization, real-time web analytics, offline marketing channels, and advanced visualization. These capabilities collaboratively provide a robust solution to enable digital marketers to engage customers across all touchpoints. Adobe provides its products and solutions through the cloud deployment. The product is offered as per user�s requirements and can be a SaaS or managed service, depending upon the product edition (standard or premium).

Recent Developments

In September 2017, Salesforce launched Sales Cloud Einstein Forecasting to provide sales forecasts on its CRM platform. The Einstein Forecasting uses self-learning algorithms to provide sales forecasts to optimize marketing and aid in decision-making.

In September 2017, HubSpot acquired Motion AI, one of the prominent chatbot builders. This acquisition was done with the aim of building a technology that can help SMEs grow and evolve with the changing consumer behaviours.

In September 2017, Oracle partnered with WeChat, a social media platform. This partnership enabled marketers to deliver connected and personalized experiences in China and other countries across the globe by seamlessly extending the capabilities of Oracle Eloqua, including powerful campaign design, delivery, and monitoring capabilities, to WeChat.

Critical questions the report answers:

Where will all these developments take the industry in the long term?

What are the upcoming trends for the Digital Marketing Software Market?

Which segment provides the most opportunity for growth?

Who are the leading vendors operating in this market?

What are the opportunities for new market entrants?

To speak to our analyst for a discussion on the above findings, click Speak to Analyst