Marketing automation software: The best and the rest, Summer 2013
Global Marketing Automation Software Market
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Transcript of Global Marketing Automation Software Market
Marketing Automation is a Must-Have Tool to Boost
Marketing Efficiency and Drive Revenues
Global Marketing Automation Software Market
Twitter: @HiralJasani
Research Preview
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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
• Pricing Trends and Distribution Channel Discussion 55
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
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Contents (continued)
Section Slide Number
The Last Word (Predictions and Recommendations) 119
Appendix 123
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Executive Summary—CEO’s Perspective
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.
1
To bridge the chasm between awareness
and adoption and to accelerate widespread
deployment, the MAS market must actively
evangelize the value proposition.
Note: Digital asset management ( DAM); customer relationship management
(CRM); marketing resource management. (MRM).Source: Frost & Sullivan
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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
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Marketing Automation Workflow
Source: Frost & Sullivan
Total MAS Market: Marketing Automation Workflow, 2013
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Drivers and Restraints
Total MAS Market: Key Market Drivers, Global, 2014–2020
1–2 years 3–5 years 6–7 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.
H 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.H M L
Impact: H High M Medium L Low Note: Drivers & Restraints are ranked in order of impact. Source: Frost & Sullivan
Mark
et
Dri
vers
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Drivers and Restraints (continued)
Total MAS Market: Key Market Restraints, Global, 2014–2020
1–2 years 3–5 years 6–7 years
The technological shift overwhelms marketers, delays
investments, and limits rollout. 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.M M L
Impact: H High M Medium L Low Note: Drivers & Restraints are ranked in order of impact. Source: Frost & Sullivan
Mark
et
Re
str
ain
ts
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Global Market Life Cycle Analysis
Western Europe
NA
CEE
MaturityDevelopment Growth
Africa &
Middle
East
APAC
LATAM
Decline
Time
Ma
rket
Va
lue
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.
Note: Latin America (LATAM); Central and Eastern Europe (CEE). Source: Frost & Sullivan
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Competitive Factors and Assessment
Source: Frost & Sullivan
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.
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Competitive Factors and Assessment (continued)
Source: Frost & Sullivan
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 end-
users 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.
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Partial List of Companies Interviewed
Source: Frost & Sullivan
• Act-On Software
• Callidus cloud
• Eloqua
• eTrigue
• Hubspot
• Infusionsoft
• Loopfuse
• Marketo
• MindMatrix
• Net-Results
• Pardot
• SalesFUSION
• Silverpop
• Treehouse Interactive
• Vocus
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Noteworthy Mergers and Acquisitions
Source: Frost & Sullivan
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
Total MAS Market, Noteworthy Mergers and Acquisitions, Global, 2013
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End-user Observations
Source: Frost & Sullivan
“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
“[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
“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
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End-user Observations (continued)
Source: Frost & Sullivan
“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.”
–Fitness company
“Biggest challenge
is analytics—MAS
that does the best
job of analytics will
be the winner.”
–Healthcare research laboratory
Interested in Full Access? Connect With Us
Britni MyersSenior ExecutiveCorporate Communications
210.477.8481
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