In the recent years, social media analytics has become an increasing need for all enterprises across the region whether it is banks, government or the retailers. Increasing proliferation of people into different social media sites/networks to understand the products types & quality, location of availability and even which company to work for. Apart from customers, many organizations are using social media networks to brand, promote, sell and for other marketing functions. Social media analytics refers to tools used to understand the various customer sentiment dispersal across different and countless online sources. Social media analytics is a technique used to analyze such traces of data to generate insights for social and business uses.
The European market for social media analytics was valued at USD 631.73 million in 2016 and is projected to reach USD 2036.02 million by the end of 2021, at a CAGR of 21.51% over the five-year forecasted period. Europe social media has a penetration of about 40% on average and close to 300 million active social media users. In some countries, such as Iceland, the penetration is close to 70%. The companies in this region have taken note of this and almost 30% of the enterprises used social media in 2013 for a variety of reasons ranging from building their image and marketing their products. Social media analytics helps these companies analyze and capture the online market.
Social media has become an essential part of people. Governments, businesses and consultants depend entirely on social media for enhancing customer experience. They interact with the consumers to promote their policies and products as well as facilitate different business transactions. These interactions leave traces of data, which can be analyzed to provide better services to customers as well as get preferences for particular products and services.
In the earlier days, brands participated or interacted with their customers online actively but totally ignored the information that resulted from the same. Now, most of the brands are capitalizing on the benefits of the social media data received by tracking the user behavior and interaction online.
The social media analytics can monitor user behavior on many intricate levels apart from simply analyzing the number of likes, shares or comments on the brand’s social media pages. There are tools, now available, that can provide summaries of the same and more.
Social media analytics market is still on the path of becoming one of the most important measurement tools to run a business or execute any brand campaign. Many enterprises are yet to discover its true potential. With huge chunk of social media content exploding every second, social media analytics may become one of the most important tools for companies to make strategies and implement short term plans.
The market for European social media analytics has been segmented into different type of deployment and end-user industry. On the basis of the type of deployment, the market is bifurcated into on-premise and on-demand models. Whereas, as per end-user industry, the market has been segmented into retail, banking, manufacturing, communications, travel and transport, professional services, energy, healthcare, government, entertainment and media and others.
Previously, banks were the dominant players in the European social media analytics market and is estimated to dominate throughout the period. Due to bad services provided, banks are extensively using social media analytics to become more attuned to customer expectations and deliver better customer experiences to the people.
The European market has also been geographically segmented into different regions as the United Kingdom, Germany, France, Italy and others.
Some of the vendors of social media analytics solutions present in the market are IBM, SAS, Oracle, mBlast, Salesforce, GoodData and Adobe.
Adopting different analytical solutions, penetration of social media, and proliferation of smartphones are some of the factors driving the growth of the market as most of the people are now increasingly accessing social media content on the devices.
However, lack of awareness of the various capabilities of the social media analytics tools and the unstructured nature of the data generated by conducting social media analytics are the biggest challenges of the social media analytics market. One must know what data to analyze in order to get favorable results for the growth of the brands or businesses. Accessing few online user details could also be an issue given the various security concerns of the social media users. The authenticity of the data obtained could also be questioned and could not be relied upon entirely.
Key Deliverables in the Study