As of 2017, the global social media analytics market was valued at USD 3.07 billion and is projected to reach a value of USD 16.37 billion by 2023, registering a CAGR of 28.20% during 2018-2023 (the forecast period).
Social media analytics is widely considered to be a major business and marketing tool in the present day business scenario. In order to gain actionable insights on consumer perceptions and improve their services and products portfolio, businesses across the globe are using social media analytics. Social media analytics combines monitoring, measurement, and analysis tools to uncover user sentiments, and identify key trends in the studied market. The deployment of social media analytics allows users to mine and decipher vast amount of data from various social media platforms, such as Facebook, Twitter, and Instagram, among others. It help the companies to discover customer sentiment about brands, trends, customers concerns, and the efficacy of the organization’s marketing campaigns, as well as competitor intelligence. The increasing number of social media users and spending on analytics are influencing the market growth.
A steady decline in the effectiveness of traditional advertising campaigns, coupled with the rising social media usage, has prompted businesses to adopt a more data-oriented approach for their marketing strategies. Social networks, such as Facebook, have realized the importance of targeted advertising they are offering, through paid solutions to businesses, wherein location, demographics, and end-device information of consumers are made available for businesses to reach out to targeted section of consumers.
Businesses engage with customers through social media platforms by associating their product list with e-commerce sites, which helps in monitoring people and fostering relationships with them. Increasing number of companies are using the collected information to understand their customers better. Retail businesses are attempting to make sense of the vast amount of data generated through societal, personal, and industrial interactions, such as social media, geo-location, mobile devices, digital sensors, point of sale, and automation.
Social media is one of the most popular means of communication in the United States. About 89% of the population from the age group of 18-28 is active on social media, generating a significant amount of content. Furthermore, about 80% of the population lies within the age group of 30-49, and 64% in the 50-64 age group. These age groups are also found to be active across different social media platforms. Owing to such high participation of population in different social media, companies, such as Amazon, IBM, and Oracle, have been deploying social media analytics to generate insights and gain a better understanding of the consumer behavior, which further guides their business and strategic decision making.
Major Players: IBM Corporation, SAS Institute Inc., Clarabridge Inc., Gooddata, Crimson Hexagon Inc., Adobe Systems Incorporated, Oracle Corporation, Salesforce.Com, Netbase Solutions Inc., Simply Measured, Sap Se, Tableau Software Inc., amongst others.