Digital Marketing Software Market

Market Overview

The global digital marketing software market size was valued at USD 71.02 billion in 2021. It is expected to reach USD 256.36 billion by 2030, growing at a CAGR of 18.3% during the forecast period (2022–2030).

Digital marketing software is a solution for increasing brand awareness and attracting the target audience via digital marketing. Digital marketing is a general term that encompasses all physical and online advertising channels. Due to the substantial shift of the target market to digital platforms, marketers are developing methods to market and increase awareness of their goods and services, with a strong focus on expanding their audience.

The worldwide digital marketing software industry is defined by ever-growing technological developments that assist in keeping up with changing consumer demands. The industry is anticipated to expand due to global digitization and the increasing use of smart devices. Also, several individuals regularly use social media to stay in touch with friends and family.

Market Dynamics

Market Driving Factors

Increasing Internet Penetration and Ongoing Digitization

The Internet has affected a paradigm shift in how individuals communicate and exchange information. Reports show that more than half of the world's population uses the Internet regularly, a trend that has accelerated dramatically over the past couple of years. The Internet has traditionally enabled many online services and an accessible communication and information exchange method. Concurrently, the increasing prevalence of smartphones and other mobile devices allows consumers to access the Internet while on the go. The continuous shift from desktops to smartphones is anticipated to stimulate demand for digital marketing software, as the rapid increase in smartphone users will expose more persons to online advertisements.

The continuous move from wired to wireless communication and the rise in wireless communication device adoption predicted to spur digital media consumption are other positive indicators. Smartphone ownership and Internet usage continue to be highly prevalent in industrialized economies; nevertheless, these statistics are rising significantly in emerging economies.

Growing Prevalence of Social Media and E-commerce Platforms

Social networking services, such as Instagram, LinkedIn, and Facebook, provide marketers with new chances to communicate with their audiences and a possible traffic source for online advertising of their products. Social media marketing is a potent instrument for organizations to interact and communicate with their target customers. Digital marketing often encompasses a variety of marketing techniques, including mobile marketing, social media marketing, and content marketing. During the projected period, the expansion of the digital marketing software market is anticipated to be primarily driven by the increasing demand for digital marketing for building brand awareness and increasing client engagement.

Marketers have been utilizing e-commerce platforms to promote brand awareness and increase website traffic after realizing that the rising popularity of online shopping is encouraging companies to purchase their products and services online. As more than 50% of the global population owns a smartphone, marketers expand their advertising possibilities and promote numerous businesses on e-commerce platforms. Digital marketing solution providers also offer modules for lead generation, client interaction, and customer relationship management.

Market Restraining Factors

Adoption and Integration of the Latest Technologies

The expansion of the digital marketing software industry could be hampered if it fails to include the newest technologies. Creating brand recognition and engaging clients frequently requires ongoing innovation and deploying cutting-edge technologies. Launching enhanced versions of digital marketing software may prevent software developers from employing the latest advances, impeding the market's growth. Despite this, digital marketing software businesses have invested much in research and development to bring the most recent technologies to their software products. Harvard professor Clayton M. Christensen describes a phenomenon in his book, "The Innovator's Dilemma," where a particular new method, idea, or product built on a sophisticated framework has the potential to change an existing product by introducing innovations like greater simplicity, convenience, accessibility, and affordability.

Key Market Opportunities

Innovations in Regulatory Measures, New Data Sources, and Attribution

A standardized framework for advertising companies and customers that offers openness and control over data across the whole data ecosystem can increase digital marketing software sector confidence. Under the ongoing deployment of sensors as part of the IoT rollout, the introduction of 5G communication technology would present new sources of precise location data. Cell phone providers might better triangulate location data if they used tighter clustering. In addition, 5G, which will enable faster speeds, will lead to internet-enabled sensors that can gather data on various topics, including product lifespan, usage, and consumption. In the future, this will open up many chances for the social media digital marketing software market to marketers, researchers, regulatory groups, and network providers.

Typically, digital marketing spending is defended because it has resulted in a specific amount of foot traffic and sales. It is still difficult to prove that digital campaigns and other advertising forms directly influence in-store sales. It connects various data silos that yield meaningful and statistically relevant information. Results. Advertising companies are overcoming the challenges of connecting online ads to offline sales by utilizing location data. Given the long-term success of digital marketing software, this is not expected to discourage marketers and advertisers from spending on social media digital marketing software.

Regional Analysis

The global fingerprint sensor market share is primarily classified into three regions, namely North America, Europe, Latin America, Asia-Pacific, and the Middle East and Africa.

North America is the dominating global digital marketing software market shareholder and is expected to grow at a CAGR of 17.9% during the forecast period. As major brands and companies seek a larger audience to support their content and promote their offerings online on the continent, the market for digital marketing software in North America is expanding. It is projected that the region's growing preference for online shopping would generate chances for advertisers to market their services and products online.

Multiple regional end-user sectors are predicted to increase their marketing expenditures, which is expected to accelerate digital marketing software in Europe. Increasing demand for data integration services, extending 5G network coverage, and rising usage of SaaS cloud services are among the primary reasons driving the expansion of the European regional market.

The Asia-Pacific digital marketing software market is anticipated to expand significantly. The region's market has positive growth potential due to the spread of the internet, the high population density, and the rising popularity of smartphones; a sizeable portion of smartphone users in the Asia-Pacific region access social media via their mobile devices. Promotional occasions like the Digital Marking Summit Asia allow industry participants to demonstrate their digital marketing software.

In Latin America, development possibilities for the digital marketing software market are anticipated to be created by factors such as the rising demand for software solutions and services by businesses and the rise in IT investment. Companies in Latin America emphasize adopting marketing automation technologies to effectively sell new products and increase the efficacy of existing initiatives.

Segmental Analysis

The global digital marketing software market is segmented by Solution, Service, Deployment, Enterprise Size, and End-Use.

By Solution

Based on the solution, the global digital marketing software market is classified into CRM Software, Email Marketing, Social Media, Marketing Automation, and Campaign Management.

The CRM software segment is the most dominant and is expected to grow at a CAGR of 19.9% during the forecast period. CRM software maintains and tracks prospective customers, integrates emails, and automates business activities. Social media marketing entails the utilization of specialized technologies for marketing on various social media platforms to reach the intended audience, generate conversions, and increase brand awareness.

Search marketing uses marketing tactics to improve the visibility of websites in search engine results to promote websites. By distributing valuable content on blogs, e-books, whitepapers, and other digital platforms, content management entails utilizing marketing tools to increase brand awareness, lead creation, and traffic generation. Marketing automation automates repetitive marketing processes, such as sending emails and publishing social media updates. This part discusses experience management, video advertising, and marketing analytics, among other digital marketing techniques.

By Service

Based on service, the global digital marketing software market is classified into Professional Services and Managed Services.

Professional service owns the highest market share and is expected to grow at a CAGR of 18.9% during the forecast period. Professional services mitigate risks and streamline on-premise and cloud design, migration, implementation, and integration. Financial advisors, consultants, design architects, advertising specialists, and other experts who offer clients knowledge-based services are examples of professional services. Managed services are utilized in business tasks and procedures to increase efficiency and save costs. Data collection, network management, infrastructure management, backup and recovery management, and security management are just a few advantages of managed services.

By Deployment

Based on deployment, the global digital marketing software market is classified into Cloud And On-Premise.

The cloud segment is the highest contributor to the global digital marketing software market and is expected to grow at a CAGR of 19.9% during the forecast period. On-premises deployment entails the installation of software on computers within the organization's physical location or at the workspace of the program user. Cloud deployment entails distributing software via the network-as-a-service delivery paradigm, called software-as-a-Service (SaaS).

By Enterprise Size

Based on enterprise size, the global digital marketing software market is classified into Influential Organizations, Small and Medium Enterprises.

The small and medium Enterprises segment is the highest contributor to the market and is expected to grow at a CAGR of 22.1% during the forecast period. Small & Medium Enterprises encompass independent, non-subsidiary organizations with fewer than 500 employees. Commercial companies with 500 or more employees are referred to as large enterprises.

By End-User

Based on end-user, the global digital marketing software market is classified into Automotive, Banking Financial Services Insurance (BFSI), Manufacturing, and Media and Entertainment.

The media and entertainment segment is the most dominant and is expected to grow at a CAGR of 22.2% during the forecast period. The media and entertainment sector includes using digital marketing software by established players in the media business, such as television, film, and print media. BFSI sector addresses the usage of digital marketing software by incumbents in the BFSI business, such as banks, financial institutions, and insurance organizations, to engage existing clients and attract new ones. The Healthcare section discusses digital marketing technologies to engage patients and assist clinicians, enhancing health outcomes. The manufacturing sector covers digital marketing techniques by manufacturers involved in producing goods for sale by employing machines, personnel, and specialized equipment. The overall segment focuses on using digital marketing techniques by incumbents in different industries and industry verticals, including transportation and logistics, travel and hospitality, real estate, consumer goods and retail, and telecommunications.

Recent Developments

• May 2022- Adobe Digital Price Index: Online Inflation Slowing; Consumers Pull Back on Spending.
• May 2022- Lupin goes live with SAP S/4 HANA on HPE GreenLake to drive digital transformation.
• May 2022- Microsoft Future Ready Industry Week highlights key trends accelerating digital transformation, enabling business models, and delivery excellence in the ITES sector.
• May 2022- Salesforce and Amazon Web Services Partner on Open-Source Technology to Help Nonprofits Accelerate Impact.
• May 2022- Next Generation of Tableau Cloud Brings Advanced Analytics and Automated Insights to Business Users.