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


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


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)


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


• 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


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


“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)


“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

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Britni MyersSenior ExecutiveCorporate Communications

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