The Current State of Digital Marketing Analytics Software 2022
Introduction
Marketing analytics software aids a company in tracking the data pertaining to traffic, leads, and sales. Implementation of marketing analytics helps the person of interest to compare various mediums of operation, such as social media vs. blogging vs. email marketing, etc. these solutions also aid in diagnosing the difficulties faced in a particular channel, and the tactical steps which need to be taken to improve the background.
Demographic, psychographic, behavioral, and geographic segmentation are considered the four main types of market segmentation, but there are also many other strategies you can use, including numerous variations on the four main types.
Marketing analytics enables businesses to gain a better understanding of the performance of their marketing campaigns and conduct a comparative analysis to determine which application yields the best results. Furthermore, organizations and institutions are expected to adopt marketing tools and analytics solutions in order to better understand consumer demands and penetrate the market.
Market size & Growth rate
The global investments in marketing services amounted to USD 457.62 billion in 2018 as compared to USD 375.19 billion in 2010, with a CAGR of approximately 12% from 2021-2026.
The global marketing analytics software market size was valued at USD 2.70 billion in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 14.8% from 2020 to 2027. The continuous need to penetrate the market more effectively and understand consumer demands is expected to encourage organizations and institutions to adopt marketing analytics tools and solutions. The use of analytics in marketing enables companies to understand the performance of their marketing campaigns better and engage in comparative analysis as to which application offers the highest returns. This is done by gauging critical business metrics, such as marketing attribution, overall marketing effectiveness, and Return on Investment (ROI).
Market Drivers
The growth of big data and analytics has provided opportunities for marketing analytics in assisting marketing professionals to understand the performance and influence of their marketing efforts. Analytics solutions provide marketing professionals insight into the performance of their marketing campaigns. They are also used to monitor other key metrics such as web analytics, email marketing, paid search advertising platforms, and social media performance. With the help of these solutions, companies can regularly measure and analyze their key metrics. This information helps companies make intelligent decisions on whether to continue with a particular program or focus on one channel more than another.
The availability of affordable internet access and data packages has facilitated the internet’s expansion into previously inaccessible areas, enabling marketers to ascertain consumers’ needs and design appropriate marketing strategies.
Increasing developments and the implementation of new technologies/solutions such as cloud-based technology and market intelligence solutions are creating opportunities for growth in the digital marketing and analytics market. The digital marketing and analytics providers are focusing on launching innovative solutions and expanding their offerings in new markets. For instance, in September 2021, Adobe launched an Adobe Experience Cloud Core Service which allows marketers to manage Adobe and third-party tags for tracking and other analytics purposes. It provides a standard way to retrieve and use marketing data
Market Trends
The COVID-19 pandemic has further shifted the customer journey and sales opportunities, as people adopted work from home environments. The shift in consumer behavior which resulted, including pushing new demographics into online shopping and affording the opportunity for more people to engage with streaming media such as podcasts, provided marketers with even more methods to reach customers — and more areas to focus their analytics as a result.
The phasing out of third-party cookies by 2023 has marketers more concerned about how they can effectively engage and manage customer privacy concerns as they lean into acquiring first-party data instead. Marketers have indicated that they expect their companies’ use of third-party data to decrease over the next two years (17.7%). On average, marketing leaders report that protecting the privacy of their customers falls under their job description, reporting a 4.5 on a 7-point scale. And 58.3% of marketers report that their companies are taking steps to create stronger privacy strategies and are taking action to increase trust with customers in the face of privacy concerns.
Challenges & Risks
According to a CMO survey, only 30% of B2B marketers rely on analytics to make data-driven marketing decisions. The reason is that marketing analytics management is quite difficult for most marketers. It should come as no surprise that 50% of marketers admit they lack the resources to use marketing analytics to its full potential. In other words, many marketers still don’t have the right people, processes, and technologies in place to make use of all of that marketing data to make an impact.
Another of the most common marketing analytics challenges that marketing faces is a skill shortage – especially for small businesses. Since data analytics is complicated and pretty much challenging to analyze, there are simply not enough marketers skilled in marketing analytics.
As you might already know, drawing conclusions from data needs to be done by someone with an in-depth knowledge of marketing and analytics. Otherwise, the data will be interpreted incorrectly.
With not-so-much skill in analytics, marketers find it hard to back up decision-making with data. This, in turn, will lead to the difficulty of measuring marketing campaigns’ success through analytics. And without clear ROI, marketers are hesitant to increase their investment in a better marketing strategy.
Opportunities
With knowledge of your customers and the ability to track your marketing efforts’ return on investment, marketing analytics provides an opportunity to create data-driven strategies for your organization. By analyzing marketing data, you can discover what’s working, what hasn’t worked, and how your customers feel about their experiences with your product and website. You can also get a full picture of the impact that marketing efforts are having on your company.
With that information, you can plan for the future. What should you do more to reach your quantitative goals? Which effort failed to generate new leads and should be dropped from future plans? Data analytics helps you strategize and answer these kinds of questions.
