Importance of Social Media Market

Social media marketing is basically the use of social networking platforms to promote a product or a service. It is also known as e-marketing or digital marketing. Social media sites have built-in data analytics tools, which enable companies to track the progress, and also include advertisement. Using social media marketing, companies offer user-generated content such as online comments, product reviews, and others to earn revenues. Social media marketing also includes the management of a marketing campaign and governance.  With the advent of the internet and mobile phones, social networking websites have witnessed a striking growth. It is easy to access, allow individuals, businesses and other organizations to interact and build relationships and communities online. These are highly beneficial and time saving compared to the traditional methods of outbound marketing and advertising. The Internet’s ability to reach billions of people has created a global position for the social media market. The market is expected to grow over USD 17.7 billion, at 14.1% CAGR during the forecast period. Furthermore, the demand for cloud social media marketing solutions is expected to impact the market positively. This is largely attributed to the adoption of social media and huge volumes of data transfers across industries, such as retail & e-commerce, government, and public sector, and manufacturing.

Based on application, the market is classified into sales & marketing management, customer experience management, competitive intelligence, and risk management. By end-use, the market is segmented into automotive, healthcare, media & entertainment, and manufacturing. And based on region, the market is categorized into North America, Europe, Asia Pacific, and Middle East & Africa.

Technological advancements, increased use of mobile phones globally and demand of market intelligence is driving the social media marketing market. Increasing activities such as tracking competitors’ activities and auditing conversations between a company and its competitors’ customers on social media platforms are propelling the market to grow. Social media platforms can provide a wide variety of information, experiences, interests, and perceptions of customers. Rise of medium-sized organizations that depend on artificial intelligence, IoT (Internet of Things), social media and cloud services, is demanding the need for marketing & managing these digital assets. Investments in social media advertising, marketing and selling activities to promote brands, is anticipated to fuel the market growth in the forthcoming years. Complicated implementation such as cloud deployment, advanced setup, and operational & maintenance charges, are the factors hampering the market growth. However, rapid digitalization, advanced management strategies, customer inclination, coupled with the ease of use of social media is likely to bring in more opportunities in the near future. In addition to this, increasing demand for high-speed data transfer, especially in the military, healthcare, and media & communication sector is anticipated to boost the market growth.

Asia pacific is currently dominating the market and is anticipated to record the highest growth rate during the forecast period. This is attributed to a large number of internet users, growing cloud adoption and vendor expansion which are driving the social media management market in the region. High-speed 4G connectivity and government tie-ups to introduce 5G have enabled North America to adopt advanced solutions and establish strong connections with a large customer base. Europe is majorly focusing on innovating and updating the existing platforms to consolidate its presence in the market. The Middle East and Africa are also forecasted to show significant growth owing to increasing investments and technological advancements across the retail and e-commerce industry vertical and expanding base of internet subscribers.