The global social media analytics software market size is projected to grow from USD 3.6 billion in 2020 to USD 15.6 billion by 2025, at a CAGR of 34.1% during the estimated period. Key growth drivers of the market are an improved focus on competitive intelligence and the growing user engagement of social media using smartphones.
Cloud adoption is said to have improved in recent times as vendors are making use of Software-as-a-Service (SaaS) to deliver cloud computing solutions. Business users are always on the lookout to assure they are offering the most effective yet economical solutions. Cloud makes it possible to perform cloud computing, which provides the ability to outsource the operational IT work to another company.
Though the best social media analytics software market has witnessed an enormous growth among various business applications, the complexities in the analytical workflow have restrained its adoption to some extent. There are a lot of new opportunities for this market, such as increasing popularity of influencer marketing techniques, the launch of new social media video apps, including TikTok and Samosa, and rising customer shifts to the Over The Top (OTT) platforms. These factors are expected to shape up the future of the social media analytics market. However, the complexity of data synchronization and continuous aligning with ever-changing social media trends are some of the challenges present in the social media analytics market.
Major drivers in the Social Media Analytics Software Market
Increased focus on the market and competitive intelligence
The global competition continues to affect the profit margins, and companies are constantly on the lookout for solutions to reduce their expenses. Companies need to integrate the demographic, competitive, and business information, along with the customer’s data, to find out the intricacies to outperform their competitors. Organizations are trying to focus on analyzing the sales and various markets to identify the gaps. Customers nowadays have become brand conscious. They prefer better quality, lower prices, and quicker delivery of products and services. Advanced analytics is being combined to help achieve market goals. Social media analytics helps analyze unstructured social data to respond to dynamic market conditions and achieve high sales and operational profitability. Organizations can retrieve huge amounts of information about customer sentiments about their brands and strategize their marketing and sales activities. Companies can make use of social media analytics to improve their market presence and gain a competitive edge by effectively analyzing the competition and customer behavior from social media platforms. Social media analytics solutions have various applications, such as customer experience management, sales and marketing management, performance monitoring, and workforce management, which also provide functionalities for organizations to gain a competitive edge.
Increasing user engagement of social media using smartphones
The adoption of smartphones has increased drastically in recent times, mainly because of mobility and enhanced features, which enable the phone to be used as a mini laptop as well. It is expected that the adoption of smartphones would increase, especially between the age groups of 18–34. The increase in the use of smartphones and the creation of user-friendly social media platforms are expected to surge the amount of social media data generated. Earlier, social media analytics was only being used by advertisers to market their products. Nowadays, it is also used by large enterprises to create trends and understand the likes or dislikes of their customers or understand the topics which attract maximum attention in real-time. Hence, increasing user engagement on social media using smartphones is considered the most important driver for the growth of the social media analytics market.
Need for social media measurement to enhance customer experience
CX comprises the interaction between an organization and its customers during the purchase or use of its solution or service. Earlier, if customers have a question related to a company’s offerings, they would visit the support site or contact the call center, if they do not find relevant answers to their queries. Nowadays, if they do not get a response from the company’s support site, they surf social media websites, such as Facebook and YouTube, to find solutions. These websites show them if the issue is being faced globally and the steps that can be taken to overcome that issue. Organizations are trying their best to enhance online CX.
It becomes difficult for marketers to manually understand the various comments generated across social media channels. To better track the unstructured data and silos of social media, organizations are looking for solutions to reduce the complexities and the processing time. Social media has become a hub with lots of data; hence, the need to enhance the CX is considered as one of the prominent drivers for the social media analytics market.
A shift of people towards the virtual realm due to COVID-19
As the governments of various countries are taking social distancing and lockdown measures, people have started shifting towards social media to stay connected. There is no other place left for people to go other than the internet, especially social media. As per the eMarketer report, Facebook witnessed a 70% increase in the usage of its apps during March. WhatsApp has launched a hub for COVID-19 information by collaborating with World Health Organization (WHO), United Nations International Children’s Fund (UNICEF), and United Nations Development Programme (UNDP) so that users can receive up-to-date information about the virus.
Read More: Best Social Media Analytics Software