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Global Marketing Automation Software Market


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The need to integrate marketing efforts to optimize returns on marketing campaign investments is driving the global marketing automation software (MAS) market. Marketers need intelligent tools to identify each sign of customer interest and promptly respond to the sign with relevant personalized content. To handle the velocity and scale of conversations with customers, they need a marketing automation platform that will help them customize the marketing content and automate the timing of all their communications. Organizations also need a tool that will facilitate better collaboration between the marketing and sales teams, and ensure that they manage the customer experience effectively.

New analysis from Frost & Sullivan’s Global Marketing Automation Software Market research puts the spotlight on marketing automation to provide a 360 degree perspective of how the solution is driving growth for firms globally. The research finds the market earned revenue of $550.7 million in 2013 and estimates this to reach $1.9 billion in 2020. The analysis shows that almost half of the 2013 market was dominated by three competitors: Marketo, Eloqua and Silverpop, with more than 80 percent of the activity concentrated in the U.S. Future growth will be fuelled by the demand for marketing agility, actionable customer intelligence and ability to measure revenues on marketing campaign performance.

“Businesses have realized the value of proactively engaging with their customers by leveraging intelligence generated in the marketing automation tool,” said Frost & Sullivan Digital Media Industry Analyst Hiral Jasani. “Additionally, measuring the ROI on marketing campaigns across multiple channels is an essential function of today’s marketers as customer interactions span several devices and media. Smarter companies that want to take charge of their lead generation and lead nurturing efforts across all relevant channels are increasingly using MAS for a strong competitive edge in the market.”

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Global Marketing Automation Software Market

  1. 1. Marketing Automation is a Must-Have Tool to Boost Marketing Efficiency and Drive Revenues Global Marketing Automation Software Market Twitter: @HiralJasani
  2. 2. Research Preview
  3. 3. Contents of Full Research Section Slide Number Executive Summary 7 Market Overview 13 Total Marketing Automation Software Market – • External Challenges: Drivers and Restraints 28 • Forecasts and Trends 42 • 55 Pricing Trends and Distribution Channel Discussion End-user Segment Breakdown 63 Market Share, Competitive Analysis, and Industry Convergence Implications 86 Demand Analysis – End-user Observations 102 Technology Trends and Complementary Ecosystem 106 Market Trends 110 Mega Trend 112 Hot Company Watchlist 114 NCF8-70 3
  4. 4. Contents (continued) Section Slide Number The Last Word (Predictions and Recommendations) 119 Appendix 123 NCF8-70 4
  5. 5. Executive Summary—CEO’s Perspective 1 To bridge the chasm between awareness and adoption and to accelerate widespread deployment, the MAS market must actively evangelize the value proposition. 2 Product line strategies geared towards vertical markets such as healthcare, financial services, and retail are the next big requirements for deeper market penetration. 3 The combined value proposition of MAS with other complementary technologies such as DAM*, CRM*, and MRM* pushes the market towards comprehensive offerings and eventual consolidation. 4 Growing online populations in emerging markets are expected to fuel the next phase of growth; vendors with advanced analytics will stand the best chance of replicating success in these markets. NCF8-70 Note: Digital asset management ( DAM); customer relationship management (CRM); marketing resource management. (MRM).Source: Frost & Sullivan 5
  6. 6. Market Overview—Key Questions This Study Will Answer What factors drive growth for the MAS market? What is the forecasted growth rate? How are the key vendors shaping the market? What are the disruptive market trends? Where are the opportunities? What are end users thinking, and what do they expect from an MAS platform? Which geographies and verticals are ready for MAS solutions? What are the key technology trends that will change the market landscape? Source: Frost & Sullivan NCF8-70 6
  7. 7. Marketing Automation Workflow Total MAS Market: Marketing Automation Workflow, 2013 Source: Frost & Sullivan NCF8-70 7
  8. 8. Drivers and Restraints Total MAS Market: Key Market Drivers, Global, 2014–2020 1–2 years As customer engagement spans increasingly diverse platforms and devices, the need for marketing agility and personalization through MAS-driven automation and efficiencies makes MAS business critical. 3–5 years 6–7 years H H With marketing teams increasingly accountable through metrics and benchmarks, MAS platforms are critical to demonstrate and optimize marketing campaign return on investment (ROI). H H M Increasing acknowledgement of MAS as a metric-driven system that offers a tangible competitive advantage drives demand for MAS solutions. H M M Growth of the global marketplace and the need for more efficient and agile marketing and sales teams spur interest in MAS solutions. Market Drivers H H M L Impact: NCF8-70 H High M Medium L Low Note: Drivers & Restraints are ranked in order of impact. Source: Frost & Sullivan 8
  9. 9. Drivers and Restraints (continued) Total MAS Market: Key Market Restraints, Global, 2014–2020 1–2 years 3–5 years 6–7 years H M L Availability of complementary solutions such as email automation tools and Google Analytics causes confusion in the market. M M L Targeted content libraries are important to fully leverage MAS; organizations are not, however, equipped or ready to incorporate content management into core strategy. M M L Resource-constrained small companies choose to hire marketers rather than invest in automation solutions, particularly in regions where labor is cheap. Market Restraints The technological shift overwhelms marketers, delays investments, and limits rollout. M M L Impact: NCF8-70 H High M Medium L Low Note: Drivers & Restraints are ranked in order of impact. Source: Frost & Sullivan 9
  10. 10. Global Market Life Cycle Analysis Key Takeaway: MAS in its early growth phase in NA; Western Europe will catch up quickly over the next 2–3 years; sales force automation drives MAS growth in APAC. Market Value NA Western Europe Africa & Middle LATAM East APAC Time CEE Development Growth Maturity Decline Note: Latin America (LATAM); Central and Eastern Europe (CEE). Source: Frost & Sullivan NCF8-70 10
  11. 11. Competitive Factors and Assessment Each vendor was assessed on a number of competitive factors to identify their relative positioning on the competitive landscape. Their position on the X-axis is determined by their current market share as a percentage of total market revenue. The size of the bubble directly corresponds to the company’s position in the market based on their market share. Their position on Y-axis correlates to their relative product line and competitive strategy based on the following parameters: Depth and breadth of product line: A vendor with a scalable and robust platform, which is easy-to-use and serves the purpose of their direct audience (marketing and sales teams in their choice of verticals), is considered a strong participant. Scalability is measured in terms of their ability to expand the bandwidth of contacts and information they store. A platform that can offer actual automation of marketing tasks and a secure API for integration with other software solutions is considered robust. They are able to differentiate their product line effectively. Breadth of product line reflects the ability to correlate marketing efforts spent on the software to ROI on the software. End-user verticals served: Vendors with diverse end-user vertical strategies score the highest on the verticals served factor. This factor also takes into consideration the distribution channel strategy used in order to serve the target verticals. M&A and funding activities: MAS providers with strong backing from investors to support their growth activity rank high on here. M&A activity involves a merger or acquisition that enhances a company’s product or boosts their revenue. Source: Frost & Sullivan NCF8-70 11
  12. 12. Competitive Factors and Assessment (continued) Geographical footprint: Vendors that establish a direct or indirect presence through partnerships in new growth markets are well-positioned to grow over the next few years. While entering new markets, vendors have to consider local end-user requirements, customer lifecycle maturity, sales cycle maturity, regulatory standards, and price points to accordingly align their product offering, marketing strategy, and vertical expansion. Price/performance value: An effective pricing strategy considers the segment in which the end-user resides. Customer education: Education here involves teaching potential end-users about platform functionality and how to get the most out of the software in terms of productivity and efficiency. Vendors that help their endusers define campaign goals, automate the maximum number of marketing tasks, and use the software to its fullest capabilities score the highest on customer education. Customer service/support: This factor measures a vendor’s online support community activity or offline support service to use regular end-user feedback and resolve any technical challenges they face. Source: Frost & Sullivan NCF8-70 12
  13. 13. Partial List of Companies Interviewed • Act-On Software • Callidus cloud • Eloqua • eTrigue • Hubspot • Infusionsoft • Loopfuse • Marketo • MindMatrix • Net-Results • Pardot • SalesFUSION • Silverpop • Treehouse Interactive • Vocus Source: Frost & Sullivan NCF8-70 13
  14. 14. Noteworthy Mergers and Acquisitions Total MAS Market, Noteworthy Mergers and Acquisitions, Global, 2013 When Who Why Jul. 2011 Act-On Software [MAS] acquires Marketbright [MAS] To own Marketbright’s email platform IP and access its technical know-how and customer base Apr. 2012 Publipage acquires Alsa Marketing [MAS] To extend online marketing and print media to measure and automate multichannel marketing through MAS May 2012 Manticore technology [MAS] merges with Sales Engine International To provide MAS technology combined with marketing services Dec. 2012 Oracle acquires Eloqua [MAS] To offer marketing automation as a part of Oracle’s marketing cloud Jan. 2013 CallidusCloud acquires LeadFormix [MAS] To combine Callidus’s sales performance with LeadFormix’s marketing platform for a collaborative solution to increase sales effectiveness June 2013 Salesforce acquires ExactTarget that owns Pardot [MAS] To provide Salesforce’s CRM customers with marketing automation capability Source: Frost & Sullivan NCF8-70 14
  15. 15. End-user Observations “I would love to have some content development support. [MAS Vendor support staff] helps us become smarter. MAS helps us sell a lot faster.” –GPS tracking company “Behavioral marketing platform—not batch and blast—is key. When people start figuring the behavioral piece, that’s when I am getting value out of MAS.” –Content management company NCF8-70 “[MAS] can provide intelligence that’s helpful. It brought on a process change. We are trying to measure and define the goals. [I would like] A/B testing for nurture campaigns.“ –Demand generation firm “There is a lot more competition in the marketplace, so retaining clients for MAS vendors is going to be a problem. Cost will probably come down a bit. [I would like] ability to create more custom forms that have 2-3 columns.” –CPA firm Source: Frost & Sullivan 15
  16. 16. End-user Observations (continued) “Tools should become more predictive. It should be able to do data mining in their own systems to see opportunities, [software should tell you] you need to follow up with someone and suggest a particular time to run a campaign. Everything was manual so MAS is good and now they have the ability to do more. Now there is no excuse. Great opportunity for marketers—if it’s in the right hands.” –Public relations and marketing firm “All businesses need to think about technology. Technology will be the key to every business. 8/10 times, people don’t even fully use CRM. There has to be someone to bridge the gap. The CMO has to take the time to figure out [how they can use technology], people have to feel entitled.” “Biggest challenge is analytics—MAS that does the best job of analytics will be the winner.” –Fitness company –Healthcare research laboratory Source: Frost & Sullivan NCF8-70 16
  17. 17. Interested in Full Access? Connect With Us Britni Myers Senior Executive Corporate Communications 210.477.8481 @FS_ITVision: Ask the Frost & Sullivan Digital Media Team Group: View Frost & Sullivan Research: Frost & Sullivan: Analyst Briefing Webinars:
  18. 18. Global Perspective 40+ Offices Monitoring for Opportunities and Challenges
  19. 19. Industry Convergence Comprehensive Industry Coverage Sparks Innovation Opportunities Automotive & Transportation Aerospace & Defense Measurement & Instrumentation Consumer Technologies Information & Communication Technologies Automotive Transportation & Logistics Energy & Power Systems Environment & Building Technologies Healthcare Minerals & Mining Chemicals, Materials & Food Electronics & Security Industrial Automation & Process Control