Europe Marketing Automation Software Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Europe Marketing Automation Software Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Europe Marketing Automation Software Market is expected to register a CAGR of 14.2% during the period of (2021 - 2026). With the onset of the COVID-19 outbreak, many B2B marketing companies adopted a play-it-safe approach through which they reduced their marketing budgets until they could analyze the impact on their businesses and had to wait for the economic scenario to improve. According to a survey by Hubspot, a significant number of businesses implemented a cut of around 1%-25% of their marketing budgets.

Key Highlights

• Most European B2B marketers who are using the marketing automated platforms stated that they are not using them to their full potential. The vendors are focusing on a couple of their software platform offerings with marketing services to provide customized services. This is strengthening the concept of Marketing as a Service (MaaS) among the region's business circles. The growing marketplace and the increasing number of marketing channels are also boosting companies to explore new markets by increasing their businesses' reach. This is driving the growth in marketing and pushing companies to deploy automation to streamline the process.
• The growing adoption of SaaS cloud services, increasing demand for data integration services, and expanding 5G network coverage are some of the significant factors that the market studied is estimated to have a massive scope in the region. The market is expected to grow significantly over the forecast period due to increased marketing investment by most regional end-user verticals, coupled with an ever-growing social media penetration. This makes the region a lucrative hub for the studied market.
• A wealth of new marketing automation technologies have emerged in recent years to help B2C marketers manage customer engagement. B2B marketers manage leads, and marketers of both types manage other marketing processes, such as campaigns and digital asset management (DaM). Many new marketing automation projects were standalone implementations, with little integration to back-office systems.
• A recent survey by the Royal Mail Market Reach of 200 CMOs in United Kingdom's Marketing Directors and Heads of Marketing of companies having more than 250 employees revealed that 80% already installed a marketing automation solution.
• Automation aims to increase efficiency while optimizing the organization's resources, time, and cost. Automation helps marketing managers cater to various activities, such as customer communication, content scheduling, social media management, lead nurturing, market research, and analytics, which may help organizations boost their sales in the future. It also helps identify individual customers' choices and suggests such products by using AI and ML algorithms in the background.
• The advent of artificial intelligence (AI) and machine learning (ML) has further propelled the growth of predictive personalization, which is expected to be the most prolific advantage of utilizing marketing automation over the forecast period. AI allows managers to engage new customers who match their existing customer profiles more efficiently.

Europe Marketing Automation Software Market TrendsIncreasing Demand for Digital Marketing is Driving the Market Growth

• Marketing managers are strategically spending on marketing automation solutions and tools to adopt the latest digital marketing trends to keep the businesses updated with the recent technological disruptions. From social media marketing to SEO or content marketing, marketing managers make significant investments to support and boost their sales.
• With social media marketing, a high priority for entertainment and marketing vendors to maintain automated fan-base engagement, the need for software that can manage multiple social media platforms at once is also driving the demand for the market.
• For instance, 7Mind is offering daily live meditation across all social media channels, helping users meditate together. It is also engaging with its community on the active Facebook group, where it is getting a lot of requests from the users asking for advice. The CRM campaigns run by the brand about different tips on releasing stress and how to deal with the situation saw an overwhelmingly positive response from users.
• 7Mind ensures that the content assets, i.e., the copy and creatives, are focusing on stress reduction without concentrating on the COVID-19 situation, which the users are tired of hearing about. It noticed that CPI/CPS dropped considerably, making user acquisition cheaper, depending on channels.
• Moreover, Email marketing is anticipated to gain significant recognition. According to Royal Mail Market Reach, 49% more consumers in United Kingdom are willing to receive a piece of mail than they do an email. The latest IPA Touchpoints study shows that over 12 months, 38% of consumers bought or ordered products or services after receiving mail. This is anticipated to drive demand for marketing automation in email marketing in the region.
• The marketing email open rates in Europe are better than in North America. According to GetResponse Benchmarking, the region has an average open rate of 21.75% compared to 18.13% in North America. Also, the click-through rate is 2.64% compared to 2.41% in North America. The open email rates suggest that email marketing is one of the main channels in the region.

Italy Holds Significant Market Share

• The growing significance of marketing in generating sales and customer retention, coupled with increased automation in various industries, is increasing the need for automated marketing services.
• According to a survey conducted by AKQA, a digital agency specializing in creating digital services and products, multinational companies in the country spent on average EUR 120 thousand in continuative campaigns and EUR 61 thousand for one-shot initiatives influencer marketing in 2019. At the same time, small- and medium-sized companies spent an average of EUR 61 thousand for continuous campaigns and EUR 30 thousand for single marketing actions.
• The e-commerce sector is expected to boost retail sales in the country significantly. According to Trading Economics, retail sales rose by 0.8% in March 2020 compared to the previous month. However, the sales plunged by 20.5% in April 2020, on account of the coronavirus pandemic.
• Conversely, online sales increased by 81% between 24th February 2020 and 1st March 2020. At the same time, orders placed on Supermercato.24, an online site that employs independent shoppers to shop at a store physically, witnessed a growth of 164%. Such growth in e-commerce retail sales is further expected to increase the need for automated marketing procedures.
• Enterprises in the country are already running with recommendation engines that use AI and ML to create hyper-personalized experiences for customers. The growth of predictive personalization is paving the way to the future, which resulted in more personalized content suggestions through mass customization strategies for specific strata of clientele.
• Furthermore, automated social media marketing is enabling social media managers by scheduling posts out in advance, providing a way for teams to reschedule evergreen content to attract new readers and a platform for understanding social media analytics, like mentions and replies.

Europe Marketing Automation Software Market Competitive Analysis

The Europe Marketing Automation Software Market is competitive due to various domestic and international players. Players in the market adopt multiple strategic initiatives such as collaboration, joint ventures, and mergers and acquisitions to grow and compete. Many organizations believe in upgrading their current portfolio to attract their customers. Some of the recent developments in the market are:

• February 2021 - Hubspot Inc. announced that it entered an agreement for the acquisition of The Hustle, a media company dealing in newsletters, podcasts, and premium research content development. The acquisition was aimed at expanding the scope of marketers with valuable content based on various topics, along with a diverse set of media.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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