Social Media Management Market by Component (Solutions, Services), Deployment Mode, Organization Size, Application (Competitive Intelligence, Sales and Marketing Management), Vertical (BFSI, Retail and Consumer Goods) & Region - Global Forecast to 2027
[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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Report Metrics |
Details |
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Market size available for years |
2018–2027 |
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Base year considered |
2021 |
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Forecast period |
2022–2027 |
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Forecast units |
USD (Billion) |
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Segments covered |
Component, Organization Size, Deployment Mode, Application, Vertical, and Region |
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Geographies covered |
North America, Asia Pacific, Europe, the Middle East & Africa (EMEA), and Latin America |
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Companies covered |
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) |
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:
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North America
- US
- Canada
-
Europe, Middle East & Africa (EMEA)
- Germany
- UK & Ireland
- France
- Spain
- Saudi Arabia
- Italy
- Rest of Europe, Middle East & Africa
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Asia Pacific
- China
- Japan
- ANZ
- India
- Singapore
- Rest of Asia Pacific
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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):
What is Social Media Management?
Social media management involves managing social media accounts, engaging audiences, and measuring the business results of social media activities. Effective social media management practices implemented at a scale across departments and regions allow everyone within the organization to collaborate and achieve measurable outcomes on social media.
Which countries are considered in the European, Middle Eastern & African region?
The report includes an analysis of the Germany, UK & Ireland, France, Spain, Saudi Arabia, Italy and other countries in the European, Middle Eastern & African region.
Which are the key drivers supporting the growth of the Social Media Management market?
Some factors driving the growth of the social media management market include the rising need to focus on competitive intelligence, the growing need to drive search RoI for social media strategy, enhancement of customer experience with social media management, the shift of people toward the virtual realm due to COVID-19 and the increase in user engagement of social media using smartphones.
Who are the key vendors in the Social Media Management 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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The research study for the social media management market involved extensive secondary sources, directories, journals, and paid databases. Primary sources were mainly Interviews with Experts from the core and related industries, preferred social media management providers, third-party service providers, consulting service providers, end users, and other commercial enterprises. In-depth interviews were conducted with various primary respondents, including key industry participants and subject matter experts, to obtain and verify critical qualitative and quantitative information and assess the market’s prospects.
Secondary Research
In the secondary research process, various sources were referred to for identifying and collecting information for this study. Secondary sources included annual reports, press releases, and investor presentations of companies; white papers, journals, and certified publications; and articles from recognized authors, directories, and databases. The data was also collected from other secondary sources, such as journals, government websites, blogs, and vendors’ websites. Additionally, Social media management spending of various countries was extracted from the respective sources. Secondary research was mainly used to obtain key information related to the industry’s value chain and supply chain to identify key players based on solutions, services, market classification, and segmentation according to offerings of major players, industry trends related to solutions, services, deployment modes, functionality, applications, verticals, and regions, and key developments from both market- and technology-oriented perspectives.
Primary Research
In the primary research process, various primary sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various Interviews with Experts, including Chief Experience Officers (CXOs); Vice Presidents (VPs); directors from business development, marketing, and social media management expertise; related key executives from social media management solution vendors, SIs, professional service providers, and industry associations; and key opinion leaders.
Primary interviews were conducted to gather insights, such as market statistics, revenue data collected from solutions and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped understand various trends related to technologies, applications, deployments, and regions. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Strategy Officers (CSOs), and end users using social media management solutions, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current usage of social media management solutions and services, which would impact the overall social media management market.
The following is the breakup of primary profiles:
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Market Size Estimation
In this approach for market estimation, we identified the key companies offering solutions and services in the social media management market, such as Adobe, IBM, Google, Oracle, Salesforce, Sprout Social, Hootsuite, Meltwater, Sprinklr, Digimind, Hubspot, Clarabridge, Khoros, Falcon.Io, Zoho, NetBase, Brandwatch, Talkwalker, Buffer, Agora Pulse, Sendible, MavSocial, Socialbakers, Synthesio, and eClincher, which have the major contribution in the market. After finalizing these companies, validation of the data was done from Interviews with Experts through primary interviews related to the market’s leading vendors. US Securities and Exchange Commission (SEC) filings and paid databases estimated total revenue through annual reports. Companies’ revenue pertaining to the Business Units (BUs) that offer the managed network services would be identified through similar sources. Through primaries, revenue data generated through solutions and services of social media management was collected. The collective revenue of key companies that offer the social media management solutions comprised 80–85% of the market, which was again confirmed through primary interviews with experts. With the assumption that the rest of the market is contributed by smaller players (part of the unorganized market), the market size of organized players (70–75%) and unorganized players (25–30%) collectively was assumed to be the market size of the global social media management market for FY 2021.
- The pricing trend is assumed to vary over time.
- All the forecasts are made with the standard assumption that the accepted currency is USD.
- For the conversion of various currencies to USD, average historical exchange rates are used according to the year specified. For all the historical and current exchange rates required for calculations and currency conversions, the US Internal Revenue Service’s website is used.
- All the forecasts are made under the standard assumption that the globally accepted currency USD, remains constant during the next five years.
- Vendor-side analysis: The market size estimates of associated solutions and services are factored in from the vendor side by assuming an average of licensing and subscription-based models of leading and innovative vendors in the market.
Demand/end-user analysis: End users operating in verticals across regions are analyzed in terms of market spending on social media management based on some of the key use cases. These factors for the social media management industry per region are separately analyzed, and the average spending was extrapolated with an approximation based on assumed weightage. This factor is derived by averaging various market influencers, including recent developments, regulations, mergers and acquisitions, enterprise/SME adoption, startup ecosystem, IT spending, technology propensity and maturity, use cases, and the estimated number of organizations per region.
Data Triangulation
Based on the market numbers, the regional split was determined by primary and secondary sources. The procedure included the analysis of the social media management market’s regional penetration. Based on secondary research, the regional spending on Information and Communications Technology (ICT), socio-economic analysis of each country, strategic vendor analysis of major social media management providers, and organic and inorganic business development activities of regional and global players were estimated. With the data triangulation procedure and data validation through primaries, the exact values of the overall market size and segments’ size were determined and confirmed using the study.
Report Objectives
- To define, describe, and predict the global social media management market by component (solutions and services), application, deployment mode, organization size, vertical, and region
- To provide detailed information related to major factors (drivers, restraints, opportunities, and industry-specific challenges) influencing the market growth
- To analyze the micro markets with respect to individual growth trends, prospects, and their contribution to the total market
- To analyze the opportunities in the market for stakeholders by identifying the high-growth segments of the market
- To analyze opportunities in the market and provide details of the competitive landscape for stakeholders and market leaders
- To forecast the size of the market segments with respect to four major regions: North America; Europe, Middle East, and Africa (EMEA); Asia Pacific; and Latin America
- To profile key players and comprehensively analyze their market rankings and core competencies
- To analyze competitive developments, such as partnerships, new product launches, and mergers and acquisitions, in the market
- To analyze each submarket with respect to individual growth trends, prospects, and contributions to the overall market
- To analyze the impact of recession across all the regions across the social media management market.
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per your company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product quadrant, which gives a detailed comparison of the product portfolio of each company.
Geographic Analysis
- Further breakup of the North American social media management market
- Further breakup of the European, Middle Eastern & African market
- Further breakup of the Asia Pacific market
- Further breakup of the Latin America market
Company Information
- Detailed analysis and profiling of additional market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in Social Media Management Market