We’re about to enter the final quarter of 2017, and the relevance and importance of social media are at an all-time high. It has become an indispensable part of our digital communications strategies and delivers measurable results in branding, leads and sales.
The world of social media may be dynamic and constantly evolving, but one thing always remains constant: the steady pattern of growth. In fact, social media users now number 2.8 billion globally. And businesses are clamoring to get a piece of the action.
Social media analytics: staggering predictions
The social media sphere has become insanely crowded and competitive. Businesses need to leverage the power of social reviews and track their results so that they can devise more effective strategies, which makes social media analytics all the more important.
Without any feedback or data from the social media channels to fall back upon, businesses would remain in the dark on what’s working and what’s not. Thus, it’s not surprising that a recent study published by Markets and Markets predicts how the size of the social media analytics market space is expected to increase from $2.23 billion in 2016 to $9.54 billion within the next five years.
That’s a 28.6 percent compound annual growth rate. What reasons are being given for such a huge jump? Well, some of the key contributors include the bigger focus on competitive intelligence and the market, the increasing use of smartphones for user engagement across social media channels and the necessity of social media measurements to improve the overall customer experience.
Which sectors benefit the most?
Well, the answer seems quite obvious—the e-commerce and retail sector, of course. These two verticals are expected to enjoy the biggest market share for the duration of the forecast period. At the moment, this industry vertical is undergoing a huge transformation, since mobile e-commerce is rapidly rising in terms of popularity and serving as a more convenient alternative to conventional brick-and-mortar stores.
The e-commerce industry is expected to pass the $2 trillion mark in 2017, according to a recent Forbes report. While this might have something to do with the emergence of several e-commerce sites, it has also been responsible for increasing competition among online retailers.
As a result, companies must take the initiative to identify brands based on customer voice analysis, enhance their customer-service management and generate insights based on their preferences if they want to expand their customer base for ecommerce websites.
Social media can help e-stores achieve this goal easily since the platforms offer a huge database of unsolicited customer reactions. Brands can use these opinions for effective brand management and to gauge the effectiveness of their campaigns. Moreover, it can help them scope out potential growth opportunities, enhance their products and services and keep track of the competition with the help of a single ecosystem.
This need to evaluate unstructured data to better grasp customer behavior and establish trends can increase sales, as well as marketing management applications, within the international social media analytics market.
As far as the actual process of evaluating the data is concerned, advanced analytics—including descriptive and predictive analytics—proved to be useful for analyzing real-time and historical data and developing useful marketing strategies. So, predictive analytics can prove useful for figuring out sales figures and determine the right course of action.
High compound annual growth rate expected for cloud deployment model
Cloud-based deployment models are easily available and cost a lot less money. As a result, they are experiencing a surge in demand.
Moreover, cloud-based solutions have simpler physical installations, lack high maintenance charges and offer accessibility around the clock from all over.