Marketing Automation Industry Growth

sunriseThe marketing automation train has left the station. Or, more specifically, the marketing automation train is moving full steam ahead. To get a sense of just how much marketing automation is growing, consider some of the following.

IDC predicts that the total market for automating marketing will grow from $3.2 billion in 2010 to $4.8 billion in 2015. Some of the factors influencing its growth are changing buyer behaviors; the emphasis on revenue generation and measurement in the wake of the 2008 recession; and the ease of adoption through the software-as-as-service (SaaS) delivery model (via Marketo).

Speaking of SaaS, 76% of the world’s largest SaaS companies use marketing automation (according to a recent report), as do 25% of Fortune 500 B2B companies.  This supports  a recent IDC study,which stated that up to 9% of discretionary marketing spend would go towards marketing automation in 2012.  The CRM software category (specifically marketing, sales and customer service) grew 12% YOY in 2012; marketing automation alone is projected to experience double-digital growth through 2014. Additionally, a more than 50% adoption rate is predicted by 2015 (Sirius Decisions). Finally, reported that marketing automation will lead CRM application segment growth with a 10.7% compound annual growth (CAGR) through 2016, reaching a total market value of $4.6B.

Conclusion: Marketing automation is on the rise and on the verge of breaking through to mid-to-large-sized businesses.

One major reason why the future appears bright for the adoption of marketing automation is its role in boosting efficiency (read more on marketing automation efficiency). Consider some concrete numbers published by On Demand Expo that illustrate efficiencies in marketing processes:

Specific functional improvements include the reduction of process errors and routing time by streamlining such tasks as campaign briefs, project management, creative review and digital asset management.

  • Average review cycle: 6 days (from 56)
  • Number of status meetings per project: down 45%
  • Amount of rework: down 38%
  • Amount of time spent chasing down projects and files: down 65%
  • Hard dollar costs from errors and proofing: down $1.2 million in 1st year

If your company is a right fit to ride the MA train (whether first class, economy class, etc.), has it climbed aboard yet? If not, why the delay? In a fast-growing market, long-term competitive advantage often lies with the early-adopting business.


Check out our helpful 14-pg. marketing automation primer.

The Case for MA


Photo courtesy of Sean MacEntee via Flickr.

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  • […] growth look like? Some analysts have predicted that the marketing automation industry will reach $4.8 billion in 2014, as marketers begin to understand how to implement and improve marketing automation […]

  • Alessandra Ceresa says:

    Yep, yep, yep. As you have clearly stated, both the CRM and marketing automation industries are booming. More and more businesses are seeing the need to implement these strategies as competition becomes fiercer, and as more business owners look for ways to increase efficiency and engagement with their leads and customers. One thing that is not mentioned in the article is the importance and trend of integrated sales and marketing platforms. SaaS vendors that streamline operations will come out ahead in the industry because of their ability to utilize CRM data, sales force automation, and more in their marketing efforts. These types of platforms inspire transparency, collaboration, and greatly enhance the customer experience.

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