Software that automates the marketing process is known as marketing automation. To put it another way, marketing automation helps marketers to deliver automated messages to customers. Automating tedious tasks and increasing the effectiveness of the overall marketing process are the key objectives of marketing automation software.
Marketing teams typically use marketing automation software to generate sales leads through a variety of channels, such as email, websites, social media, and text messages. The entire business, and the marketing staff in particular, is thought to profit from marketing automation. Marketing automation has benefits for the business in terms of decreased staffing expenses, greater revenue and average deal size, improved accountability, and improved efficacy. The global marketing automation market is anticipated to reach US$6.53 billion in 2023, progressing at a CAGR of 9.53% during the forecasted period.
North America accounted for the largest share in the global marketing automation market. Because of the early adoption of marketing solutions, North America and Europe are projected to be major markets over the forecast period. The adoption of marketing automation technologies is being impacted significantly by increased regulatory pressure in the European region and improvements in EU data protection standards for protecting enterprise data. The Asia Pacific region is expected to be the fastest-growing market, because of rising knowledge of advertising methods, increased internet penetration, and increased mobile device usage.
Top Impacting Factors:
Driver: Increasing Number of Gmail Users
Because of the continuously growing number of Gmail users, the majority of organizations adopting marketing automation use email marketing. Users receive automated mailings based on their previous purchases and profiles. In fact, marketing automation denotes brand trustworthiness. As a result, automated communications delivered via Email have higher open and click-through rates than marketing messages sent via any other platform. As a result of the large increase in Email users, more marketing firms are likely to invest in marketing automation software in the coming years. Thus, driving the growth of marketing automation market.
Data quality issues is one of the largest barriers in the marketing automation industry. Every year, marketers across the world waste millions of dollars because of poor data. Poor quality data can also devastate the company’s brand image. The majority of businesses lack accurate customer information. This is due to the fact that in many companies, each department manages its own data in multiple systems that are not always in sync. Customers may also receive incorrect and, on occasion, repetitive information from marketers. Not everyone can use marketing automation software to its full potential due to inadequate customer data management. This provides a significant impediment to the market's expansion.
AI combined with marketing automation software, can empower businesses to better understand customer needs, translate data into decisions, interact with potential customers, and positively impact business outcomes. In fact, use of AI enables better personalization of offers, analysis of customer behavior and offers data to build mailing campaigns. One of the developments of AI in marketing automation is lead scoring. Through lead scoring, marketing automation tools offers the convenience of predicting whether a lead is on the verge of becoming a customer without human intervention. Thus, integration of AI would support the growth of marketing automation market in the coming years.
The COVID-19 Analysis:
Digital solutions for marketing and sales automation are fast gaining traction. Marketing automation enables businesses to optimize their marketing campaigns, track their customers' journeys, and create real-time information so they can respond to customers more quickly and effectively. The COVID-19 pandemic has highlighted the need of marketing automation, since people have transferred their interactions with businesses and purchases to digital media. The pandemic has increased the importance of marketing automation as customers have massively shifted towards digital channels to interact with businesses and purchase products and services.
The pandemic has sparked a new e-commerce and internet marketing trend, which is expected to persist during the post-COVID period, propelling market growth. Furthermore, the growing demand for personalization and the incorporation of AI into marketing automation are expected to drive market growth in the post-COVID timeframe.
Analysis of Key Players:
The global marketing automation market is moderately concentrated. Because of the increased need for promotional services and automation solutions, the marketing automation industry is seeing massive investments. As consumers prefer products with the most advanced features, market innovation is critical. The capital expenditure is likewise high, allowing enterprises with strong competitive strategies to advance quickly. The key players of the global marketing automation market are:
Collaborations, new product development, investments connected to growing capabilities, mergers and acquisitions, partnerships and agreements, and investments in research and development are just a few of the major strategies used by the players.