The Global Social Media Management Market Anticipated to Generate a Revenue of $18,197.8 Million, Growing at a CAGR of 21.2% from 2021 to 2028Download Sample Reports Overview
The global social media management market is estimated to be valued at $18,197.8 million by 2028, surging from $3,771.4 million in 2020, at a noteworthy CAGR of 21.2%.
Impact analysis of COVID-19 on the Social Media Management Market
COVID-19 impact on social media management market has been rather positive owing to increasing use of social media platforms among users. Business have increasingly adopted social media tools to reach its customers to gain actionable insights on consumer perceptions and improve their products portfolio and services. Also, COVID-19 epidemic has demonstrated the value of data and the use of social media analytics in pandemic planning. The impact of this epidemic offers significant opportunities for social media management vendors. Also, social media interactions around the world are used to gather data on the pandemic scenario with the help of advanced social media analytics tools. Furthermore, the government, local government entities, and hospitals are using social media platforms as a means of reaching out to citizens and educating them about the precautions that need to be taken in case of a pandemic.
Global Social Media Management Market Analysis
Globally, the digital world has grown immensely, with an estimated 4 billion people using the internet. It is expected that social media adoption will increase by 15% over the course of the year, surpassing the 5 billion mark by 2025. Advertising expenditures on digital and social media platforms are expected to grow by 30% to 35% by 2021. Brands play an important role in employing third-party services like Facebook ad management agency to reach potential clients for their products and services. Currently, Facebook and YouTube have more than 2.85 billion and 2.29 billion active users, respectively.
Data misuse, whether intentional or not, can have major legal ramifications for both businesses and their customers. To ensure that no data usage breaches government legislation, businesses should clearly clarify terms pertaining to data usage, procedure, and retention in their project contracts. Such developments are likely to overcome the challenge facing the social media industry.
Moreover, increasing content on the internet and rise in available data for analyzing customer behavior, companies have enormous opportunity to tap in the coming years. As a result, companies can easily attract, convert, upsell, and cross-sell their products and services. Moreover, Facebook’s ad management agency has recognized the value of targeted advertising, which they now provide to businesses through sponsored solutions that make location, demographics, and end-device information of consumers available for businesses to reach out to a specific segment of the population.
Global Social Media Management Market, Segmentation
The global social media management market is segmented based on type, enterprise size, end-use, and region.
The type segment is further divided into engagement, scheduling & publishing, analytics, and others. The analytics sub-segment of the global social media management market is projected to have the fastest growth and surpass $4,494.4 million by 2028. Due to a persistent drop in the efficiency of traditional advertising campaigns, as well as increased social media usage, firms have begun to embrace a more data-driven strategy to marketing. The adoption of social media analytics is changing the ways marketing initiatives are designed and executed today.
Based on enterprise size, the social media management market has been sub-segmented into large, mid-market, and small & medium enterprises (SMEs) of which the SMEs sub-segment is projected to generate the revenue of $5,172.6 million by 2028, with the fastest compound annual growth rate of 21.9% during the forecast period. Social media has become an important component of SMEs' marketing strategies, assisting with brand positioning and product differentiation. Furthermore, social media management market trends suggests that increased use of social CRM solutions and social media analytics is expected to improve the segment's market.
Based on end-use, the social media management market has been divided into BFSI, retail, healthcare, real estate, manufacturing, media & entertainment, others of which the healthcare sub-segment is projected to generate the revenue of $2,607.3 million by 2028, with the fastest compound annual growth rate of 22.9% during the forecast period. Healthcare institutions and hospitals may communicate with prospective patients one-on-one using social media platforms, while also providing vital information to help them make the best decision for their health.
The social media management market for the North America region is projected to witness a rapid growth. This market generated a revenue of $1,215.8 million in 2020 and is further projected to reach up to $5,618.2 million by 2028. The region is a mature and well-established market with a good risk appetite and a desire for technical advancements, providing a multitude of opportunities for social media management vendors and service providers. The region is known for its large number of social media users and the importance of social media management solutions. The use of social media networks as a significant marketing and customer engagement tool for industrial verticals will boost market revenue generation in the region even more.
Top 10 Major Key Players in the Social Media Management Market are -
- Social Hub
- Likeable Hub
- Social Flow
Moreover, the market is highly fragmented owing to large number of social media marketing management companies. The majority of the players offers integrated solutions with a wide variety of features while niche players are enhancing their competencies.
Sprinklr, a social media management company, released the second version of its customer service solution, Sprinklr Modern Care, in October 2021, which contains sophisticated artificial intelligence (AI) and automation to help organisations unify agent engagement and case management in a one contact centre software solution.
Along with company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Social Media Management Market:
- Bargaining Power of Suppliers: When it comes to knowledge and experience, there is a supply issue that is experiencing a bottleneck. Those with expertise can build confidence in their business models in their clients or top management, but those without experience pose a greater risk in an industry that is already seen as risky. As a result, when it comes to supplying distinctive social media management solutions, suppliers' bargaining power (skilled professionals) is moderate.
Thus, the bargaining power of the suppliers is moderate.
- Bargaining Power of Buyers: As the sector provides a greater selection of social media management alternatives, purchasers acquire tremendous bargaining power. Buyers have an advantage since they have a cheap switching cost and corporations offer less product differentiation.
Thus, the bargaining power of the buyers is high.
- Threat of New Entrants: Because of economies of scale, there are essentially no entry barriers in the social media industry, allowing new entrants to thoroughly research the market. Furthermore, a new entrant might challenge an established player in the business to business (B2B) paradigm due to advantages such as minimal initial investments, price-performance decision skills, and adaptability. For those who adopt B2B as their business model, low entry barriers also imply low exit barriers. For new entrants to the industry, social media offers the right mix of opportunities.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: There are few options available in the market in terms of competitiveness and other marketing and influencing techniques, such as search engine optimization (SEO) and search engine marketing (SEM). However, these alternatives cannot be regarded a total replacement because social media marketing is considerably effective, less expensive, and less time-consuming to set up than SEO or SEM. However, it is quite vulnerable in terms of competition, as clients are more likely to compromise performance for a cheaper price or increase performance for a greater price.
Thus, the threat of substitutes is moderate.
- Competitive Rivalry in the Market: In the B2B model, the social media business has a huge number of agencies. Lower pricing of social media solutions is a widespread phenomenon, acting as a substitute in terms of competitiveness. Because of the low investment and low entry hurdles, competition is likely to expand; yet sustainability remains a challenge, just as in any other industry.
Therefore, competitive rivalry in the market is high.
Mr. Abhishek Paliwal
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