Social Media Management Market

[312 Pages Report] The social media management market is projected to grow from USD 17.5 billion in 2022 to USD 51.8 billion by 2027, at a compound annual growth rate (CAGR) of 24.2% during the forecast period. Social media management platforms are gaining high traction, augmented by the growing need of businesses to advance their connections with customers using social media management solutions, gain real-time insights, and drive corporate results in terms of RoI. The demand for social media management is expected to rise further as enterprises turn to social media marketing for easily attracting, converting, upselling, and cross-selling their products and services; and also running reward loyalty programs for their target client base.

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Market Dynamics

Driver: Increasing focus on competitive intelligence

Global competition continues to affect profit margins, and companies are constantly looking for technological solutions to maximize their productivity and reduce costs while maintaining an edge in the competition. Companies need to integrate demographic, competitive, and business information, along with the customer’s data, to discover the intricacies of outperforming their competitors. Organizations are trying to focus on analyzing sales and various markets to identify gaps. Customers these days have become brand conscious. They demand better quality, lower prices, and faster delivery of products and services. Advanced analytics is being incorporated to help achieve market goals. Social media management solution helps to analyze unstructured social data to respond to dynamic market conditions and achieve high sales and operational profitability. Organizations can retrieve huge amounts of customer sentiments about their brands, then strategize their marketing and sales activities. Companies can use social media management solutions to improve their market presence and gain a competitive edge by effectively analyzing the competition and consumer behavior from social media platforms. Social media management solutions have various applications, such as engagement, CRM, publishing, advertisement, monitoring, and real-time analytics.

Restraints: Regulatory & compliance constraint

Data privacy issues have attracted global attention in recent years and have significantly affected the social media space with the formulation of data protection and privacy laws and regulations, such as the General Data Protection Regulation (GDPR), Payment Card Industry Data Security Standard (PCI DSS), Health Insurance Portability and Accountability Act (HIPAA), and Gramm–Leach–Bliley Act (GLBA). GDPR specifies the requirement of enterprises to provide data breach notifications, secure data transfer, anonymize customer data, and process data with the consent of clients. According to the regulation, if any organization compromises the privacy of its customers or employees through its social media platforms or if an employee of the organization exposes confidential information about the stakeholders or customers of the organization, they are bound to pay hefty fines and legal actions and proceedings will be initiated against the concerned individuals or organizational entities.

Opportunity: Increase in cloud adoption trends

Cloud adoption is said to have increased recently because vendors are using Software-as-a-Service (SaaS) to deliver cloud computing solutions. Business users are always on the lookout to ensure they are providing the most effective social media management solutions. Cloud makes it possible to perform cloud computing, which allows outsourcing the operational IT work to another company. Cloud service providers take all the risks and burdens associated with it. As per industry experts and cloud vendors, cloud computing is expected to grow at an even higher rate during the upcoming years due to its range of features, such as flexibility, reliability, scalability, and low costs. Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS) are all provided in the cloud Deployment mode.

Vendors are increasingly deploying the SaaS model to provide social media management solutions over the cloud. For instance, in March 2021, HCL partnered with Google Cloud; this partnership aims to expand their strategic partnership to provide HCL Software’s Digital Experience (DX) and Unica Marketing cloud-native platforms to Google Cloud.

Challenge: Lack of standard measures for a social media management platform

Previously, the content on social media was mostly limited to text, which was easy to analyze. With technology development, this unstructured data has expanded to include multimedia content in the form of images, videos, audio files, and GIFs. The analyzed data must be reliable and valid to generate value from social media channels. Otherwise, it would not be of much use and can be considered bad data, leading to wrong decision-making in organizations. Hence, it is necessary to validate all the analyses and algorithms used to rely on the results obtained. If the methodology and math cannot be verified, then foolproof decisions cannot be made. Most vendors validate the information themselves, which exposes a common problem with social media management for a management platform. Some provide validation with the help of customer metrics, such as Key Performance Indicators (KPIs); this method helps focus only on certain circumstances. Vendors are normally not keen on providing broad external validations. Part of the reason not to do so is the lack of standard measures for social media management solutions.

Solutions segment to account for larger market size during forecast period

The solutions segment of the social media management market has been divided into social media marketing; social media listening, monitoring, and analytics; social media asset and content management; and social media risk and compliance management. This section discusses each solution subsegment's market size and growth rate based on type (for selected subsegments) and region.

Social media plays an integral part in the business landscape. With 3.2 billion people using social media worldwide and 11 new users every second, the market is at an upsurge in the present and is to witness this in the future. Social media management solutions help reach a huge audience and simplify running a social media campaign. Social media management solutions refer to the platform, tools, and software, which provide end-to-end social media management solutions for social media data to numerous industry verticals. Social media management solutions help extract data from social media channels to track customer sentiments and their behavior toward brands. The increasing adoption of social media management by marketers and advertisers to understand customer preferences and analyze patterns for improving sales is fueling the demand for social media management solutions across various verticals.

Cloud-based deployment mode to register highest CAGR during forecast period

The cloud-based deployment mode provides a solution to access the data remotely from various servers or data centers. These include servers, networks, storage, databases, analytical tools, and software platforms to deliver and access services over the internet. Its low cost of Operating Expenditures (OPEX) helps users pay per usage and invest more time and energy in concentrating on core business goals. In the cloud deployment mode, the social media management solution is offered as SaaS, and all the social media management workloads are cloud-based. Social media management solution vendors handle IT infrastructure requirements of the customer, data redundancies, data availability, virtual private network setup (related to customer IT teams), setting security protocols and audits, configuration, and maintenance and updates.

North America to have largest market size during forecast period

North America is expected to have the largest social media management market share. The region is a mature and well-established market with a healthy risk appetite and inclination toward technological innovations, presenting many opportunities for social media management vendors and service providers. A widespread social media consumer base and the high prominence of social media management tools characterize the region. The adoption of social media networks as a key marketing and customer engagement tool for verticals will further drive market revenue generation across the region.

The presence of a growing tech-savvy population, high internet penetration, and better connectivity has resulted in an enormous usage of social media platforms. Such large-scale data generation through social media platforms has offered an opportunity for enterprises to gather meaningful insights about brand performance, product influence, product innovation, and campaign performance. Most of the customers in North America have been leveraging social media management for business activities that include, but are not limited to, campaign management, branding, marketing, advertising, and customer perception analysis. The rising popularity and higher reach of social media apps are further empowering SMEs and startups in the region to harness digital media as a cost-effective tool for building and promoting business, growing consumer base, and reaching out to a wider audience without substantial investment into sales and marketing channels. Several leading industry players, such as Bank of America, L'Oréal USA, and American Airlines, have successfully harnessed social media management as a rampant tool to tap consumer sentiment and formulate customer growth and retention strategies for North America.

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Key Market Players

The social media management solution and service providers have implemented various types of organic and inorganic growth strategies, such as new product launches, product upgradations, partnerships, and agreements, business expansions, and mergers and acquisitions to strengthen their offerings in the market. Some major players in the social media management market include Adobe (US), IBM (US), Google (US), Oracle (US), Salesforce (US), Sprout Social (US), Hootsuite (Canada), Meltwater (US), Sprinklr (US), Digimind (France), HubSpot (US), Qualtrics (US), Khoros (US), Cision (US), Zoho (India), Netbase (US), Talkwalker (Luxembourg), Buffer (US), Agorapulse (France), Sendible (UK), MavSocial (US), Emplifi (US), Synthesio (US), Eclincher (US), CreatorIQ (US), Slate Teams (US), Hunter Digital (US), AlchemyWorx (US), KAWO (China), Make Your Mark Digital (US), The Cirqle (Netherlands), Affable.ai (US), Loomly (US), Altorise (India), Socinova (India), and Promo Republic (US).

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Scope of the Report

This research report categorizes the social media management market based on component, organization size, deployment mode, application, vertical, and region.

By Component:

• Solutions
• Services

By Organization Size:

• Large Enterprises
• Medium-sized Enterprises
• Small-sized Enterprises

By Deployment Mode:

• On-premises
• Cloud

By Application:

• Sales & Marketing Management
• Customer Experience Management
• Competitive Intelligence
• Risk Management & Fraud Detection
• Others (social media account management and collaboration, social media content scheduling, and reporting)

By Vertical:

• BFSI
• Retail & Consumer Goods
• Government & Public Sector
• Healthcare & Life Sciences
• IT & Telecom
• Media & Entertainment
• Manufacturing
• Travel & Hospitality
• Other Verticals (education, real estate, and energy and utilities)

By Region:

• North America
  • US
  • Canada
• Europe, Middle East & Africa (EMEA)
  • Germany
  • UK & Ireland
  • France
  • Spain
  • Saudi Arabia
  • Italy
  • Rest of Europe, Middle East & Africa
• Asia Pacific
  • China
  • Japan
  • ANZ
  • India
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Mexico
  • Colombia
  • Brazil
  • Rest of Latin America

Recent Developments:

• In January 2023, IBM announced IBM Partner Plus, a new program that reimagines how IBM engages with its business partners through unprecedented access to IBM resources, incentives, and tailored support to deepen the technical expertise and help speed time to market. The program is designed to fuel growth for new and existing partners, including resellers, hyperscalers, technology providers, independent software vendors and systems integrators, by putting them in control of the earning potential. IBM Partner Plus is central to the company’s Hybrid Cloud and AI strategy and aims to empower partners to help clients automate, secure, and modernize the businesses.
• In January 2023, Sprout Social announced the acquisition of Repustate, an innovative sentiment analysis and natural language processing company. Through this acquisition, Sprout will increase the power, breadth and automation of social listening, messaging and customer care capabilities with added sentiment analysis, natural language processing (NLP) and artificial intelligence (AI).
• In December 2022, Adobe and the State of Illinois announced that the Illinois Department of Innovation & Technology (DoIT) has entered a contract with Adobe for use of Adobe Experience Cloud and Adobe Document Cloud to modernize digital experiences for its residents. The state government is working alongside Adobe to create consistent, personalized experiences for residents, reflecting today’s digital-first economy.
• In November 2022, Sprinklr is the global leader in Unified-CXM – or managing how customers are engaging (experiencing) a brand via external channels. This includes listening to brand-relevant conversations across the internet and creating content and engaging on platforms like social media. Salesforce is the provider of CRM – or managing leads and interactions with the customer within a business. With the expanded partnership announced – and working with strategic go-to-market (GTM) partners like Accenture – the companies can help organizations unify CXM and CRM and provide a truly complete view of the customer.
• In September 2022, Salesforce unveiled Salesforce Genie, a hyperscale real-time data platform that powers the entire Salesforce Customer 360 platform. With Genie, every company can turn data into customer magic, delivering seamless, highly personalized experiences across sales, service, marketing, and commerce that continuously adapt to changing customer information and needs in real time.

Frequently Asked Questions (FAQ):

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