Social Media Analytics Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud and On-Premise), By Organization Size (Small & Medium Size Enterprises and Large Enterprises), By Function (Sentiment Analysis, Competitive Analysis, Hashtag Analysis, Dashboard & Visualization, and Others), By Application (Sales & Marketing Management, Customer Experience Management, Risk Management & Fraud Detection, and Others), By End-user (BFSI, IT & Telecom, Media & Entertainment, Retail, Healthcare, Government, and Others), and Regional Forecasts, 2022-2029

The global social media analytics market size was valued at USD 7.52 billion in 2021. The market is projected to grow from USD 9.26 billion in 2022 to USD 41.38 billion by 2029, exhibiting a CAGR of 23.8% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with social media analytics experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global social media analytics market exhibited a higher growth of 22.7% in 2020 as compared to 2019.

The report's scope comprises various solutions and services offered by key players such as NetBase Quid, Inc., Hootsuite Inc., Meltwater, Sprout Social, Inc., Oracle Corporation, IBM Corporation, and others. Social media analytics can be defined as a technique to accumulate data from social media platforms and integrate that data to make essential business decisions. These analytical tools help businesses with product development, customer experience, market and competitive intelligence, and operational efficiency.

For instance, IBM Corporation provides IBM Watson for social analytics, enabling users with behavior, sentiment, and clustering analysis using machine learning and artificial intelligence. Similarly, Sprout Social, Inc. offers an integrated analytics platform that can integrate with social media networks, including Twitter, Instagram, Facebook, Pinterest, and others.

These solutions extract real-time data from all major social networks, discussion forums, blogs, consumer review sites, and podcasts using AI speech recognition. Furthermore, analytical tools serve various industries, including technology, retail, pharma, universities, banks, NGOs, governments, and others.

Companies worldwide are deploying these analytical tools to monitor, engage, understand, and analyze customers and company brand reputation. The increasing demand for cloud-based analytical solutions and the rising integration of emerging technologies are driving the social media analytics market growth. Several key market players are adopting these advanced solutions for better performance. For instance,

• In February 2022, Qualtrics launched XM Discover using Clarabridge technology to help companies better understand their customers. XM Discover enables companies to bring feedback from structured/unstructured data sources, including chat, social media posts, and review sites onto one platform using artificial intelligence and machine learning.

COVID-19 IMPACT

Closure of Retail Stores Led to E-Commerce Sales Supporting Market Growth

The COVID-19 pandemic positively impacted the market owing to increase in e-commerce activities and online shopping. The global market share showed a sharp rise in the market size by 22.7% in 2020 as compared to 2019. In terms of revenue, the market witnessed an increase in revenue of USD 6.11 billion in 2020.

Due to the outbreak, businesses thrived for survival and existence as many governments imposed shutdowns and lockdowns. To minimize the impact of the pandemic, companies relied on analytics to sustain their operations and revenue. Companies worldwide adopted advanced analytics to understand the real-time scenario of the pandemic through social interactions across various social media platforms.

In addition, social media platforms were used by many governments, hospitals, and public authorities to create awareness about the pandemic and to communicate with the people. They use these analytical tools to understand and analyze the pandemic. Post pandemic, there was a massive rise in the adoption of emerging technologies such as artificial intelligence, machine learning, natural language processing, and augmented reality. For instance,

• In July 2020, IBM and Influential launched a social targeting solution (AI-enabled) to help brands identify reliable social influencers. Influential is a social media technology partner of IBM Watson. Watson Advertising Social Targeting is a solution to help brands identify influencers across all social media platforms. It allows businesses to analyze their competitiveness in the market.

Such an increase in the adoption and development of automated and AI-based solutions by the leading players is expected to create ample opportunities for global market growth.

LATEST TRENDS

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Rising Use of SaaS Model and Artificial Intelligence (AI) based Social Media Analytics to Propel Market Growth

Rising adoption of cloud-based and AI-driven social media analytics solutions among retail, hospitality, travel, and other sectors to aid the market growth. AI-based services in analytics are gaining popularity and are increasing across developed countries, including the U.K., the United States, France, Japan, and others.

Several players in the market are developing AI and cloud-based analytics to remain competitive. For instance,

• In March 2021, Meltwater acquired Linkfluence to improve AI-driven insights from social media. Linkfluence is a French SaaS company that uses artificial intelligence to enhance social media intelligence platforms for consumer insights. This acquisition enabled Meltwater to bring AI-enabled consumer insights to global brands through social listening and analytics.

DRIVING FACTORS

Increased Penetration of the Internet and Number of Social Media Users to Drive the Market

Brands rely on social media platforms to understand and engage with their customers. The data extracted from social media interactions aids businesses in fueling their operations and generating revenue. The rising use of social media and increased internet penetration across regions worldwide are expected to drive the market. Social media network sites have been enormously used for online purchases, chat & messaging, entertainment, weather, health & fitness, and more.

Furthermore, the increasing use of smartphones among users is also expected to bolster the market. Audience’s keen interest in rich video content, short films, and TV series is pulling the demand for PCs, laptops, tablets, and mobile phones.

A survey by the Pew Research Center states that around 81% of U.S. adults use YouTube.

RESTRAINING FACTORS

Data Security Concerns Regarding the Services Might Hinder Market Growth

This solution benefits many businesses, including finance, retail, travel, and others. However, some obstacles and challenges for which users must be prepared for risks include phishing attacks, device faults, fraudulent messages, software, and network weakness. For instance,

• Cyber threats – There is a high chance of data being hacked in social media networks. Hackers can easily access the financials of customers, business accounts, and other essential data such as credit card details. Such mishaps and data leakage from social media platforms can result in substantial financial loss to business and can damage the reputation.

Thus, lack of security and provision of secured networks might hamper and impede market growth.

SEGMENTATION

By Deployment Analysis

On-premise Segment to Hold Largest Market Share due to Increasing Use of Mobile Devices to Propel Market Growth

Based on deployment, the market is segmented into cloud and on-premise. The on-premise deployment model is expected to hold the largest social media analytics market share owing to the increasing use of mobile devices, laptops, and PCs with internet access. Consumers are inclined toward digital technologies and use social media platforms for online shopping, communication, and other social connectivity activities.

However, with automation conquering the economy, cloud-based analytics is gaining popularity and is expected to hold the highest CAGR in the market share. Companies have started incorporating Software as a Service (SaaS) model in their analytics for business efficiency and ease.

By Organization Size Analysis

Large Enterprises Segment to Hold Maximum Market Share Due to Huge Customer Base

On the basis of organization size, the market is segmented into large enterprises and small & medium size enterprises. The large enterprises segment is expected to hold the maximum share in the market owing to a vast customer base and large scale of operations. Volumes of data are generated every minute across social media platforms and large enterprises use analytical tools for monitoring and extracting the required data.

However, the small & medium size enterprises segment is expected to hold the highest CAGR as the deployment of these analytics doesn't require huge capital and investment. Also, it is inexpensive as these analytics can be deployed over the cloud without any infrastructure.

By Function Analysis

Sentiment Analysis to Lead the Market due to Rising Need for Understanding Consumer Attributes

By function, the market is divided into sentiment analysis, competitive analysis, hashtag analysis, dashboard & visualization, and others. The sentiment analysis segment is expected to hold the largest share in the market owing to its rising demand among the firms. It monitors the brand mentions and helps entities understand to reveal positive, negative, neutral, or ambivalent attributes by using natural language processing technology.

However, the dashboard & visualization segment is estimated to grow with the highest CAGR, followed by competitive analysis. Dashboards enable users to understand specific social findings more deeply without needing advanced technical skills. Firms can easily summarize their analytical findings with the help of charts, graphs, tables, and other presentation tools.

By Application Analysis

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Increasing Use of Social Media by Businesses for Brand Promotions Led to the Segmental Growth

Based on application, the market is segmented into sales & marketing management, customer experience management, risk management & fraud detection, and others. The sales & marketing management segment is expected to hold the largest share in the market owing to increase in the use of social media networks by many businesses for promoting their products. With the rise of e-commerce sales, brands are finding this an opportunity to promote and increase their customer base. Social media analytics tools aid companies in marketing and growing their brand mentions.

However, the customer experience management segment is estimated to hold the highest CAGR in the coming years. Social media analytics solutions help companies listen to and monitor customer interactions over chat and other social media.

By End-user Analysis

Retail Segment to Hold Largest Share due to Rising Adoption of Social Media Analytics

On the basis of end-user, market is segmented into BFSI, IT & telecom, media & entertainment, retail, healthcare, government, and others.

The retail segment is expected to hold the largest market share owing to increasing use of social media for online shopping and other e-commerce activities. Social media platforms are gaining popularity as retail businesses are making the most use of them by advancing their connections with customers. Using these analytics, retail brands can anticipate marketing trends, promotional efficiency, competitor ranking, and other more advantages.

However, the media & entertainment segment is expected to hold the highest CAGR in the market share. While many media and entertainment businesses collect social data, a few have incorporated analytics to understand consumers' decision-making abilities. In addition, these analytics aid firms in developing timely strategies to capitalize on the current opportunities and identify new ones.

REGIONAL INSIGHTS

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Geographically, the market is fragmented into five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America is estimated to hold the largest market share in the global market during the forecast period. The growth is accredited to maximum social media users in this region. Companies in this region are using social media to enhance their customer experience. Most businesses are maximizing the benefits of data received from social media by tracking user interaction and online behavior.

According to the GlobalStats June 2022 report, around 72.29% of the population in North America used Facebook.

These analytics enable companies to tune into conversations that are already happening to build a richer understanding of their customers and brand mentions. They can gather information, using structured and unstructured data sources, and can analyze it with technologies such as AI and machine learning. The U.S. dominates the North America market with the presence of significant regional vendors.

Europe's market is driven by increasing smartphone penetration in the region. With the availability of smartphones at a lower price, access to social media has increased. This encourages the companies to promote business online for a better customer reach, thus boosting the market growth. The World Bank states that Germany has the highest number of active internet users.

According to Eurostat 2021, around 59% of EU enterprises used at least one type of social media.

The Asia Pacific market is expected to grow with a highest CAGR owing to the rising adoption of digitalization and the urge to opt for advanced analytics. The market is evolving rapidly in this region, with consumers inclining toward automation. China sees more than 61 million users of the Weibo social media platform daily. Similarly, India has more than 100 million Facebook and Twitter active users, making it a large marketplace.

The Middle East and Africa (MEA) region is tremendously adopting digital technologies. Growing number of social media users has attracted companies to use social media websites for advertising. Governments, retailers, consultants, and businesses depend on social media to enhance the customer experience.

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The South America market is rapidly growing due to various small & medium enterprises adopting these analytics. Brazil, Mexico, and Colombia have witnessed a significant increase in the use of social media for brand mentions. Furthermore, mass communication technology continues to penetrate the region, which is expected to bolster the market growth.

KEY INDUSTRY PLAYERS

Key Players are Focused on Strengthening their Market Position with Continuous Developments

The global market is consolidated by leading players such as NetBase Quid Inc., Digimind, Hootsuite Inc., Meltwater, Sprout Social, Inc., Qualtrics International Inc., Oracle Corporation, IBM Corporation, Talkwalker, and Brandwatch. These key players incorporate strategies such as investing in research & developments, mergers, product launches, acquisitions, collaborations, and partnerships. For instance,

• March 2022: Brandwatch acquired Paladin, a comprehensive influencer marketing platform. With this acquisition, Brandwatch enabled complete influencer marketing functionality within its suite. Also, it helps brands in building meaningful connections with consumers. The Paladin platform offers campaign management, influencer discovery, and reporting across the world's leading social media.


• April 2022: Digimind partnered with Facelift to provide essential tools for successful social media growth. Facelift is a social media management tool company. This partnership helped both companies monitor their brand image and centrally manage all social networks. It helps to make business decisions and take real-time actions.


• October 2021: Talkwalker acquired discover.ai, a consumer and cultural insight platform, to boost its professional services. This acquisition enabled Talkwalker's consolidation within the industry to help more brands benefit from the consumer intelligence platform and drive business impact.

List of Key Companies Profiled:

• IBM Corporation (U.S.)


• Oracle Corporation (U.S.)


• Clarabridge (Qualtrics International Inc.) (U.S.)


• Sprout Social, Inc. (U.S.)


• Meltwater (Netherlands)


• Hootsuite Inc. (Canada)


• NetBase Quid, Inc. (U.S.)


• Brandwatch (Cision US Inc.) (U.K.)


• Digimind (France)


• Talkwalker Inc. (Luxembourg)

KEY INDUSTRY DEVELOPMENTS:

• June 2022: Louisville Athletics department signed a multi-year agreement with the consumer intelligence platform, Talkwalker. The insights provided by Talkwalker aid Cardinal athletics to learn, react, understand the impact, and help make strategic athletic decisions with social input from fans, influencers, celebrities, and news publications/blogs around the globe.


• June 2022: Digimind launched Digimind.org, a program to help charities and schools by giving them access to social media listening tools. Through this, the NGOs can monitor, analyze, and report on media developments free of charge. This program benefited more than 50 non-profit organizations around the world.


• May 2022: Brandwatch joined the TikTok marketing partners program to expand its analytical offerings. This partnership empowered Brandwatch clients to manage, optimize, respond, and understand the content on TikTok while staying within the Brandwatch platform.


• March 2022: Sprout Social, Inc. partnered with Salesforce to help Salesforce customers to manage their social media presence through Sprout's social suite. Salesforce customers can manage activities such as engagement, analytics, publishing & scheduling, listening, advocacy, and platform integrations.


• January 2022: Netbase Quid, Inc. partnered with Twitter to provide insights and prepare a report on Twitter talks around personal care. NetBase Quid aided the power of Twitter public conversation through its suite of social media analytics tools to create a report on the CPG industry.

REPORT COVERAGE

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The global market research report offers qualitative and quantitative insights into the market and a detailed analysis of the size & growth rate for all possible segments in the market. It also provides an elaborative social media analytics market analysis along with industry dynamics, emerging trends, and the competitive landscape. Key insights offered in the report are the adoption of automation by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

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