Worldwide revenues for marketing software solutions will grow from approximately $20.2 billion in 2014 to more than $32 billion in 2018 with a compound annual growth rate (CAGR) of 12.4%, says a new study from IDC.
During the four-year period, the companies will spend a total of $130 billion on software for marketing departments.
The market is driven by changing consumer expectations and investment by some of the world’s largest IT providers. Competitive advantage gained by early adopters and the rise of agencies and BPOs as alternative providers are also influencing the market.
As marketing organizations are rapidly adopting new technology to better serve their customers, increase efficiency, and drive measurable business performance, says Gerry Murray, research manager with IDC’s CMO Advisory Service. This will create enormous market opportunity for suppliers.
However, the market will see a number of transformations as it evolves from point solutions to platforms to marketing as a service, Murray added. “The full potential of this market will only be realized when technology, creative and technical services come together. How that happens will determine the winners and losers.”