Market Overview

Size of the domestic digital marketing software market in 2022 is estimated at 282,800 million yen (based on the sales at businesses). It is forecasted to reach 316,750 million yen in 2023. Digital transformation at user companies, which has been ongoing since the onset of novel coronavirus pandemic, is one of the reasons for the expansion. SMEs are using digital marketing tools increasingly, in addition to large enterprises, who have been using them aggressively.

The tightening of third-party cookie restriction from the perspective of protecting personal information is also having a significant influence. Companies are now focusing on giving personalized experiences to their customers through the use of first-party data that they may obtain on their own. These factors are propelling the industry expansion.

Noteworthy Topics

CRM & MA Gaining Traction Among SMEs

In the past, tools like CRM and MA were primarily introduced by large corporations that could make significant investments in digital marketing. However, due to the impact of COVID-19 pandemic, businesses of all sizes started to embark on digitizing sales activities and streamlining operation vigorously. In the need for reconsidering in-person sales style, it became imperative to do sales differently, such as utilizing customer management tools and find potential clients among webinar attendees and website visitors. As a result, digital marketing tools gained hold quickly among SMEs including local businesses that had previously been sluggish to adopt these technologies. In response to this market trend, suppliers that previously only sold to major corporations are now considering offering solutions for SMEs, broadening the market's customer base.

In addition, as a user adopts various kinds of software, they started to focus on the ease of integration. Instead of choosing a single tool for a single purpose, it is more desirable for companies to market using data on multiple systems to create seamless customer experience. Against these backgrounds, suppliers are creating an ecosystem to improve the connection between software.

Future Outlook

The digital marketing software market is expected to show steady growth. Digital transformation during the pandemic diversified the type of client touchpoints. The ease of pandemic anxiety has prompted businesses to resume offline sales activity. While the situation has enabled businesses to collect a great amount of client data through multiple channels, how well they can utilize the data depends on the use of marketing tools.

Additionally, many vendors are combining generative AI with their software. It allows companies to automate marketing processes such as email creation, analysis assistance, report generation, and ad design production. Further application of generative AI is projected to improve user convenience and contribute to improved end-customer experience.

Owing to the above-mentioned factors, the adoption of digital marketing software is expected to accelerate in the coming years.


 

Research Outline