Some analysts believe that there is no place for content marketing software despite content marketing’s growing adoption. This group of skeptics have begun the countdown, unsure if there is really a market for content marketing software and questioning its potential for growth and sustainability. However, here at ScribbleLive, we are confident that the market for content marketing software is growing and evolving rapidly as a result of a number of trends. The movement from analog to digital advertising, the merging of content marketing and social spheres, and the increasing demand for digital marketers to be iterative and highly measured all indicate that the relatively young content marketing software market is continuing to expand, and suggest that opportunities for content marketing software will only continue to grow.
1. The Shift from Analog to Digital Advertising
The continuing shift from analog to digital advertising, particularly in the content marketing sphere, creates fertile ground for market growth. Digital advertising is “more measurable, more personal, more efficient, and more addressable than old mass media” and therefore increasingly appealing to marketers. As we move into what some would describe as the “post-advertising” age, brands are beginning to understand the changing marketing landscape and shift from impersonal strategies to a content-based approach that includes user-generated content and rich storytelling.
Simply put, brands aren’t putting money into banners anymore. Rather, they’re shifting to incorporate social content, second screen experiences, and user-generated content via digital advertising and branding campaigns. ScribbleLive customers such as Red Bull are using embeds to create second screen experiences while covering extreme sports events, while the Grammys have used the same strategy to showcase backstage coverage, polls, and photos during commercial breaks. WebMD reaches their audience through open forums with health experts, SportCheck’s #MyNorth campaign uses a pinboard to feature user-generated photos, and Al Jazeera is breaking news with live updating streams.
Brands adjusting to the shifting advertising landscape are now reconfiguring their budgets and redirecting money into the digital sphere, specifically into creating custom content. In 2013 Content Council reported that spending on the production and distribution of custom content “rose to $43.9 billion, the second highest amount to be recorded.” Content Council also reported that of the average overall marketing, advertising, and communications budget, 39% of the funds were devoted to content marketing. Additionally, Executive Director of Custom Content Council, Lori Rosen, also reported that “video has been the fastest and most consistently growing medium for content marketing” and “62% of respondents now report using video in their content marketing.”
These statistics suggest that the opportunities for content marketing software will continue to grow as content marketing becomes increasingly important to the growing digital advertising field.
2. The Social and Content Marketing Spheres Merge
In the hands of talented marketers social media can be a powerful branding tool, but how does a brand ensure its voice is heard above the trillions of tweets and blog posts? Nowadays everyone from your neighbour’s grandpa to the Grumpy Cat are broadcasting content, and these voices are creating an increasingly crowded cloud of opinions. This is where content marketing software becomes an important tool for brands and companies operating and spending money on custom content. Tweets, blog posts, and video content can only be heard amongst the ever-growing number of voices if they are utilizing SEO, distributed effectively across social channels, and continually optimized with reference to metrics.
Social media and content marketing are therefore not competing spheres, but rather complementary strategies within the same toolbox. Excellent custom content can only be discovered if it is optimized for SEO and searchable on social networks. According to Content Council, social content is the most frequently used form of content marketing, and 81% of respondents report creating content explicitly for use in social media.
As the social and content marketing spheres become less distinct and more fluid/co-dependent, the need for content marketing software becomes increasingly important.
3. Increasing Demand for Marketers to Utilize Metrics
There is also an increasing demand for digital marketers to be iterative and highly measured in their discipline. According to Forrester, almost all marketers say that content marketing is important, however over 85% admit that it is only somewhat effective in generating revenue. In a recent article published by AdAge, Andre T. Parreira noted that in “the ‘attention economy,’ where the goal is attracting a few moments of a customer’s scarce viewing time, [measuring clicks] is no longer good enough.” What a marketer really needs is to be able to effectively measure how a viewer is engaging with custom content, and how much time is spent viewing that content.
In this shifting digital marketing landscape, content marketing software that can measure engagement minutes and explore model attribution will help marketing teams understand how custom content is translating into revenue.
Crunching the Numbers
Based on data gathered from data.com, we believe that the total addressable market is over 1 billion in the US, and over 5 billion globally, providing lots of fertile ground for growth.
We arrived at these numbers by dividing the market into 3 subcategories; large enterprises (earning more than $1billion annually) mid-size enterprises (earning $100million – $1 billion annually), and small enterprises (earning $5 million to $100 million annually). We also estimated a steady ARPU for each segment; $20,000 for large enterprises, $5,000 for mid-sized enterprises, and $100 for small businesses. We verified our estimate of $5 billion by delving into the CRM software market. The table below reveals that marketing departments are currently spending approximately $4.9 billion per year on CRM software (Figure 2). We believe that content marketing software is equally as essential as CRM software, meaning these numbers support our current market estimate.
|Sum of Revenue (M) – USD|
|Row Labels||2014 YR||2015 YR||2016 YR||2017 YR||2018 YR|
|Customer Service and Support||8,437||9,362||10,583||11,988||13,578|
We’re not the only ones predicting a strong future for the content marketing software market. Curata also anticipates that the marketing software market will grow to more than 32.3 billion in 2018 with an annual growth rate of 12.4%. As brands shift towards more engaging digital advertising strategies and marketers search for ways to measure and optimize these new forms of engagement, the market for content marketing software will only continue to expand.