Global Social Media Analytics Market (by Deployment Type, Component, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Global Social Media Analytics Market (by Deployment Type, Component, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)

Market Insight:

Social media analytics is the practice of acquiring and analyzing data from social media platforms like as Facebook, Instagram, LinkedIn, and Twitter. Marketers regularly employ it to monitor internet discussions about products and companies.

In the coming years, demand for social media analytics is going to be heavily influenced by the growing popularity of mobile e-commerce, the need to improve customer services, their cost-effectiveness, ease of availability, the increasing use of text analysis to improve customer experience, and the development of image analysis solutions. The global social media analytics market is expected to reach US$9.60 billion in 2023, growing at a CAGR of 33.90%, during the forecast period.

Segment Covered:

• By Deployment Type: The report offers the bifurcation of the global social media analytics market into two deployment types: On-Premises and Cloud. Cloud social media analytics market is anticipated to grow at the highest CAGR in the future as it is extremely cost-effective and can be used to store data and perform analytics, thereby expanding the growth. The market would be driven by increased storage capacity, enhanced performance of the internet, and provide further improvement in cloud services.
• By Component: In terms of component, the report divides the global social media analytics market into two components: Services and Software. Services segment held the maximum share in the global social media analytics market. The growing adoption of social media analytics across all major verticals, such as BFSI, telecom and IT, retail and e-commerce, health care and life science, etc. is primarily boosting the demand for social media analytics services in the market. Whereas, the solutions segment is expected to hold a larger market share during the forecast period mainly due to adaptation by industries vertically which not only includes private players for advertisement purposes but also includes pharmaceutical industries, health and lifestyle, media industry, telecom industry, etc.

Geographic Coverage:

According to this report, the global social media analytics market can be divided into five major regions: Asia Pacific, North America, Europe, Latin America and Middle East and Africa. The countries covered in Asia Pacific region are China, Japan, India, and Rest of Asia Pacific, while North America includes the US, Canada, and Mexico. Moreover, the UK, Germany, Spain and the Rest of Europe are included in the Europe region.

The North America social media analytics market enjoyed the largest market share, primarily owing to high adoption of digital technologies among individuals, rising social media penetration especially among teenagers and young adults, and the growing adoption of software as a service (SaaS) model platform. While the US continues to be a prominent region of North America social media analytics market, accounting for the adoption of different analytical solutions and the rising penetration of social media.

Top Impacting Factors:

Growth Drivers

• Rising Number of Internet Users
• Growing Influence of Social Media
• Escalating Data Generation
• Growing Digital Advertisement Spending

Challenges

• Large Number of Victims of Cyber Crime
• Lack of Standard Measures for Social Media Analytics

Trends

• Rising Adoption of 5G Connections
• Surge in Adoption of Cloud Computing
• Integration of Artificial Intelligence (AI) with Social Media Analytics Software
• Growth in Data Analytic Services
• Driver: Escalating Data Generation

With growing data creation, the companies can get better insights about consumers. Such insights can provide valuable input used for decisions involving, for example product development, which enable markets to expand and may lead to a competitive advantage. Data generation is skyrocketing, interaction with the outside world becoming increasingly complex with new media platforms, continuous content production and the blurring of the roles of content production and consumption. Hence, a need for social media analytics has emerged to be essential, giving to boost to the social media analytics market in the coming years.

• Challenge: Large Number of Victims of Cyber Crime

Social media data, if not preserved carefully by the companies, may give rise to data compromised issues which may impact the trust and reliability among the stakeholders of the social media analytical company. An attacker could exploit social media data as vulnerable to access sensitive data, steal resources, and destroy equipment. The social media analytics software is connected through smart phones, tablets and personal computers (PCs) and there is an increasing chance of this software of being hacked. Therefore, the rising cyber crime would negatively impact the growth of the social media analytics market.

• Trend: Growth in Data Analytic Services

As the analytics tools become more sophisticated, marketers are able to make more on-point decisions about the direction in which a business is headed. This results in better profitability for a business and allows customers to have a more pleasing experience. By having access to big data on social media, it would open the doors to opportunities and via tools that help with analysis. Thus, the digital marketing scene would be changing even faster. With access to intuitive insights about the social media performance of a brand, the patterns would be more noticeable which otherwise had been missed. Therefore, the growing data analytic services is essential for the overall social media analytics solutions, thus augmenting the market growth.

The COVID-19 Analysis:

The COVID-19 pandemic has had a favorable impact on the worldwide social media analytics market's growth. People began using social media tools to communicate around the world during the COVID-19 pandemic. People stayed at home due to the lockdown, and social media platforms were congested at the moment. Many governments, public officials, and hospitals used social media platforms to interact with the public and disseminate knowledge about infectious illness safety and actions to be done.

Analysis of Key Players:

The social media analytics market is fragmented with the presence of a large number of players dominating worldwide. Key players of the social media analytics market are:

• IBM Corporation,
• Adobe Inc.,
• Salesforce.com, Inc.,
• Oracle Corporation,
• Alphabet Inc. (Google),
• Hootsuite Inc.,
• SAS Institute,
• NetBase Quid,
• GoodData Corporation,
• Digimind Company,
• Cision Ltd. (Brandwatch Company),
• QualtricsXM (Clarabridge),
• Sprout Social,
• Talkwalker Inc.,
• Khoros LLC

In May 2022, Sprout Social announced its partnership with TikTok as a part of TikTok marketing partner program. It will launch first-of-its-kind integration that allows Sprout users to grow their video strategy. Also, in February 2021, Cision acquired Brandwatch for US$450 million, which has helped create strong media monitoring and contact databases. This acquisition combines two large players who offer a wide range of services from PR to marketing and social media engagement, making it a PR, Marketing, and social listening giant.