Social Media Management Market Size & Industry Report by 2028

[Research Report] The social media management market is expected to grow from US$ 17,315.0 million in 2022 to US$ 63,747.4 million by 2028; it is estimated to grow at a CAGR of 24.3% during 2022–2028.

The use of social media management is increasingly adopted by small and medium enterprises (SMEs) due to the growing number of SMEs and shifting focus toward online marketing, such as social media marketing. Interacting with consumers on social media is an important marketing strategy for small businesses. Using social media helps a company build brand awareness, increase the company’s customer base, and connect with current customers. Marketing through social media is easy for small business owners as long as the company actively posts on social media pages, and it is a cost-effective marketing approach. Common social media sites include Facebook, Instagram, Twitter, LinkedIn, and Pinterest. Further, the number of startups is increasing globally, including in India, Germany, Brazil, and Canada. According to the Times of India, the total number of startups founded during the period 2021 stood at 3,476 in India news article of December 2021. Similarly, in the second quarter of 2021, 140 startup companies were registered in Germany. And compared with the same period in 2020, 35 more startups were registered, according to the E-commerce Germany news. Therefore, the rising number of SMEs globally and shifting focus towards online marketing for small businesses will create a huge opportunity for social media management market players for business expansion activities.

Strategic Insights

Impact of COVID-19 Pandemic on Europe Social Media Management Market

The European Commission released a Joint Communication detailing the EU’s plans to combat the infodemic that resulted from the emergence of the COVID-19 pandemic in 2020. Cooperation between governments and social media companies is critical in combating false or misleading information, and governments must provide more precise standards to avoid misinformation. Given this report, The European social media management market experienced positive growth in 2020 due to increased internet penetration.

According to a Business Standard article, the European Union's (EU) unemployment rate in December 2020 increased to 7.5% amid the COVID-19 pandemic. As per Statista, the number of monthly active social media users in European nations was 49.6 million in January 2021, with 49.6 million of them living in France and using social media to access online services. Russia has the highest number of social network members, accounting for 99 million, followed by Germany with 66 million social media users. During the pandemic, the majority of individuals spent more time on social media networks. As a result, these social media platforms have become ideal venues for companies to advertise and promote ideas, products, or services. Moreover, social media management systems and solutions are among the leading choices for raising a company's brand recognition, driving inbound traffic, improving customer happiness, and increasing conversion rates. Businesses are adopting social media platforms to operate successfully in the economy and build a social media presence to attract new prospective consumers, which is driving the adoption of social media management solutions among SMEs.

Before the COVID-19 pandemic, The global social media management market was valued at US$ 9481.1 million in 2019, whereas during the pandemic, it reached US$ 11463.7 million in 2020. Furthermore, in 2021, it was worth US$ 14123.2 million. Therefore, the overall impact of the COVID-19 pandemic on the global social media management market growth was positive in 2020.

Lucrative Regions for Social Media Management Providers

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Social Media Management Market Insights

Rising Reach of Social Media

According to the Digital 2022: Global Overview Report (DataReportal), in January 2022, a total of 4.62 billion people worldwide used social media (approximately 58.4% of the total population), and 424 million new users came online within the last 12 months.

Moreover, the same report states that the average daily time spent using social media is 2 hours and 27 minutes for a particular individual. Further, in January 2021, as per Digital 2021: Global Overview Report (DataReportal), the Philippines had the highest social media usage rate globally, and their internet use was 60% higher than the average at 11 hours a day. Overall, Asian countries spend more time on social media, and several Asian countries rank higher than the average worldwide time of 2 hours and 25 minutes, as per Digital 2021: Global Overview Report (DataReportal).

Social media are evolving from a way to communicate with friends to the ultimate channel for information, online shopping through social commerce, and business, news, and marketing. Also, due to the COVID-19 pandemic, consumer habits are changing with people using social media to connect, be entertained, find information, and shop. In addition, some industry verticals are experienced massive increases in traffic. Thus, widespread social media penetration is acting as a driving factor for the social media management market growth.

Component-Based Market Insights

Based on component, the market is classified into solutions and services. The solution segment led the social media management market with a larger share in 2021.

Social Media Management Market, by Component, 2021 and 2028 (%)

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Deployment Mode-Based Market Insights

Based on deployment mode, the social media management market is segmented into on-premise and cloud-based. The cloud-based segment led the market with a larger share in 2021.

Enterprise Size-Based Market Insights

Based on enterprise size, the social media management market is classified into small and medium enterprises (SMEs) and large enterprises. The large enterprises segment led the social media management market with a larger share in 2021.

Application-Based Market Insights

The social media management market analysis by application, the market is segmented into sales and marketing management, customer experience management, competitive intelligence, and risk management and fraud detection. The sales and marketing management segment accounted for the largest social media management market share in 2021.

Vertical-Based Market Insights

The social media management market analysis by vertical, the market is segmented into IT and telecom, BFSI, healthcare, media and entertainment, retail, and others. The BFSI segment accounted for the largest social media management market share in 2021.

The players operating in the social media management market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the social media management market. A few developments by key players are listed below:

• In May 2022, Adobe partnered with Meta to introduce a new 'Express Your Brand' training program, which is aimed to assist small company owners in generating more successful content and digital marketing strategies and maximizing their brand as part of the promotion of its new Adobe Express production suite.

• In April 2019, Centerbridge Partners, L.P., and IBM Corporation announced a definitive agreement under which funds advised by affiliates of Centerbridge will acquire IBM's marketing platform and commerce software offerings.

Company Profiles

• Adobe
• IBM Corporation
• Google LLC
• Oracle Corporation
• Salesforce.com, inc.
• HubSpot, Inc.
• Zoho Corporation Pvt. Ltd.
• Meltwater
• Brandwatch
• Sprout Social, Inc.