Global Marketing Automation Market Size to Double by 2028
The growth is being driven by a variety of factors such as high internet penetration and use of mobile devices
Global marketing automation market is projected to double from $2.75 billion in 2021 to nearly $4.71 million by 2028 with a compound annual growth rate of 7.9% over the next six years. However, unlike in the past, the growth could be led by the Asia-Pacific region due to the rising manufacturing sector, structural changes in digital advertising and growing smartphone usage in the Indian and Chinese economies.
A new report from Valuates suggests that major growth factors causing this growth are the rising internet penetration, digitization of businesses and extensive use of smart phones. These have necessitated the need for automated marketing solutions in an era of personalized advertising where the need for retaining users and acquiring new customers becomes more critical.
In addition, the fast-paced developments in the field of big data analytics and its adoption during the Covid-19-led lockdowns and their adverse impact on businesses is also likely to significantly boost the growth of marketing automation during the period.
The use of aggressive data-driven promotion strategies across several enterprises, AI, IoT, and social media campaigns will drive market growth in the coming years. Meanwhile, the pandemic also resulted in the accelerated adoption of automation tools in marketing. The report highlights some major trends likely to impact the business over the next few years:
The Big Boom on the Digitization Front
A major driver to marketing automation efforts is coming from the rapid digitization efforts from both director to consumer and business to business brands. These enterprises are taking up digital marketing activities via lead generation at better ROI. Integrating CRMs and marketing automation with business processes is helping them automate repetitive tasks.
Marketing automation solutions include email marketing, mobile application, inbound marketing, social media marketing, reporting, and analytics, lead nurturing and lead scoring, campaign management, etc. Online channels are becoming dominant with complex customer buying journeys. These factors will drive the growth of the marketing automation market in the upcoming years.
High Volumes of Data Generation & Personalization
The business-to-consumer automation is witnessing rapid growth with marketers seeking to create more and more customized experiences for target customers. Marketing automation giants are innovating with more tools to boost sales, capture users at various levels of their purchasing journeys and retain them for longer durations. From personal e-mailers for after-sales service to recommendations based on past purchases, in-app notifications etc.
However, more and more of these campaigns are relying on massive amounts of content that users generate, thus helping brands grasp their preferences more accurately. This helps targeted campaigns on multi-channel networks where tools automate routine tasks and leave the experts to focus on core areas.
Data-driven Analytics and Promotional Strategies
Both artificial intelligence and internet of things sensors are capturing market data in granular detail with machine learning, predictive analytics and big data forecasts assisting marketers to create better ad campaigns. With website chatbots capturing vital data, they are using nuanced tactics to provide a clear vision of what worked and what didn’t.
These not only help improve the efficiency of resource allocation, but also generate segmented audience reports, positive user experience, better product or service development etc. Which is why companies are now investing in AI tools to bolster growth of marketing automation.
The Covid-19 Impact
The pandemic and the ensuing global lockdowns have surged the adoption rate of marketing automation solutions as organizations seek to ramp up their online presence. These tools offer convenience and help in cutting down employee costs.
The remote working model is fuelling its demand further. Both large and small-scale companies are aggressively reevaluating their marketing spending to maintain a steady flow of income and growth. The shift towards online promotional campaigns is evident. These rapid developments will boost the growth of the marketing automation market in the upcoming years.
