Social Media Management Market Size, Share & Industry Analysis, By Deployment (Cloud and On-premise), By Application (Sales and Marketing Management, Customer Experience Management, Risk Management and Fraud Detection, Competitive Intelligence, and Others (Social Media Content Scheduling)), By End User (Retail, Travel & Hospitality, Health & Fitness, Beauty & Fashion, Media & Entertainment, Education, and Others (Real Estate)), and Regional Forecast, 2024 – 2032

The global social media management market was valued at USD 22.57 billion in 2023. The market is projected to be worth USD 27.03 billion in 2024 and reach USD 124.63 billion by 2032, exhibiting a CAGR of 21.1% during the forecast period.

Social media management is collecting and analyzing target groups and developing marketing and influence strategies tailored to specific groups of people or target groups. Creating and distributing online social media content, monitoring online conversations with customers and followers, interacting with influencers, providing community service, and monitoring, measuring, and reporting social media performance and ROI are part of social media management.

As per Sprout Social Survey, in 2024, the number of social media users is estimated to reach around USD 5.17 billion globally. This increase in users is driving demand for social media management, which involves managing an online presence by creating and publishing content for a target audience and analyzing the results. Businesses and marketers use social media platforms for marketing and advertising. A webfx survey indicates that 86% of industry professionals said social media has helped increase brand exposure. In 2024, total spending on social media advertising is expected to reach around USD 219.8 billion.

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As organic reach decreases on every platform, paid social media advertising has become a popular strategy for reaching the target audience. Facebook and Instagram are mostly used platform by marketers for advertising, delivering the highest ROI for marketers.

The COVID-19 pandemic positively impacted the growth of the social media management market as the use of social media increased drastically. According to the International Journal of Environmental Research and Public Health, over 70% of Spanish adults reported a rise in social media use during the first wave of the pandemic in 2020. In addition, around 87% of respondents indicated a rise in their social media use during the second wave in 2021. This trend was observed across globally, further contributed to the positive growth of the market.

Impact of Generative AI

Adoption of Generative AI to Enhance the User Experience to Boost Market Growth

Generative AI focuses on creating new content rather than analyzing or interpreting existing data. Generative AI helps to enhance the user experience on social media platform by offering personalized recommendations and content. It analyzes user preference and data and curate personalized feed for users by showing them content that is most relevant to their interest.  Additionally, it help companies identify trending topics, industry news and valuable content that resonates with their audience and personalizing social media interactions based on user data and behavior. GenAI optimize social media advertising campaign by creating personalized and targeted ads.

Starbucks adopted generative AI to enhance its social media marketing efforts and by using  AI-powered tools, Starbucks creates custom-made content for their followers, including custom drink recommendations based on preferences of users. This approach has significantly increased engagement and customer loyalty.

Social Media Management Market Trends

Growing Popularity of Social Commerce to Boost Market Growth

Social commerce is the use of social media platforms to promote and sell products or services. Social commerce presents consumers a more convenient and interactive shopping experience. The social commerce market in the U.S. is projected to reach around USD 80 billion by 2025.  This trend is gaining popularity due to increasing social media usage. As per research, typical social media user spends around 15% of their time on social media platforms, with the average user spending 2 hours and 26 minutes each day across about 6 social media apps. Four major social media platforms including Facebook, Instagram, Pinterest, and Tiktok currently provide native social commerce tools. Among these platforms, Facebook is the most used platform for social commerce, with around 89% of marketers leveraging it to drive retail sales. As per industry experts, around 465 million people use Pinterest monthly to search for products and ideas.

Social commerce eases the purchasing of the products as. When additional steps in the buying process are involved, customers often lose interest and abandon their purchases. By letting users stay within the app from searching to checkout, there is a lower risk of shoppers abandoning their purchases. For instance, Facebook allow their users to shop directly on the app by clicking on “Checkout on Facebook” option, eliminating the need to redirect to a shopping website. This feature helps the social media user to browse and purchase the product without leaving the social media app. Therefore, the above factors are driving the social media management market growth.

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Social Media Management Market Growth Factors

Integration of AI-driven chat-bots and Machine Learning Capabilities to Enhance the Initiatives toward Social Media Management Solutions

Artificial Intelligence (AI)-driven chatbots are becoming increasingly sophisticated, capable of understanding natural language and context while providing real-time responses. This enables businesses to offer immediate support and information to their social media followers, enhancing customer satisfaction and retention. Furthermore, Machine Learning (ML) algorithms analyze vast amounts of data to derive valuable insights into audience behavior, content performance, and trends. This data-driven approach empowers businesses to fine-tune their social media strategies for maximum impact and return on investment. As AI and ML continue to evolve, their integration into social media management solutions redefines how brands interact with their audience and extract meaningful insights from the digital noise. For instance,

In April 2023, Sprout Social, a cloud-based social media management software provider, launched ML and automation features with OpenAI’s GPT model. These enhancements expanded their ML capabilities and integrated Repustate’s acquisition, enabling organizations to work smarter and maximize their social media impact.

RESTRAINING FACTORS

Growing Skepticism among Consumers Regarding Influencer Authenticity to Hamper Market Expansion

One of the primary reasons for skepticism toward modern influencers is their lack of credibility. It profoundly impacts businesses and brands that rely on influencer marketing as a core component of their social media strategies. When end users perceive influencers as inauthentic or insincere, it can damage their reputations and harm their associated brand. This makes it challenging for social media management tools to measure influencer campaigns' return on investment accurately.

Additionally, as regulatory bodies pay increasing attention to influencer marketing, social media marketing tools may need to evolve to ensure compliance with emerging guidelines and regulations to maintain consumer trust.

Social Media Management Market Segmentation Analysis

By Deployment Analysis

Cloud Segment to Display Highest CAGR due to Rise in Cloud-based Solutions

Based on deployment, the market is divided into cloud and on-premise.

The cloud dominated the market and is expected to grow at the highest CAGR during the forecast period. This dominance is due to the rising adoption of cloud-based solutions and the surge in cloud service deployment by small and medium-scale organizations across the globe.

On the other hand, the on-premise segment is anticipated to grow at a moderate CAGR during the forecast period. On-premise requires high investment and requires continuous maintenance resources and is potential for permanent data loss incase of system malfunctions.

By Application Analysis

Sales and Marketing Management Segment Dominated as it Helps Businesses to Drive Revenue and Growth

Based on application, the market is divided into sales and marketing management, customer experience management, risk management and fraud detection, competitive intelligence, and others, including social media content scheduling.  

The sales and marketing management segment dominated the market with a maximum share in 2023 as sales and marketing management is essential for driving the business revenue and growth. Social media management solutions allow businesses to communicate with their customers and raise the brand awareness. It is affordable tool that help businesses to reach wide audience without substantial advertising expenses.

However, competitive intelligence is estimated to showcase a high CAGR during the forecast period. Competitive intelligence helps companies to track and analyze competitor's social media activities, market trends, and customer interaction. It also reduces the time required to deliver competitor insights by 50% and helps social media engagement rates. 

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By End User Analysis

Adoption of Social Media Management Tool for Generating Buzz Drive the Growth of Media & Entertainment Segment

Based on end user, the market is divided into retail, travel & hospitality, health & fitness, beauty & fashion, media & entertainment, education, and others, including real estate.

The media & entertainment segment dominated the market by generating maximum revenue in 2023. The media & entertainment sector uses social media to effectively target audiences, leveraging multiple tools, formats, and features to generate buzz.

On the other hand, the travel & hospitality segment is estimated to showcase the highest CAGR during the forecast period. According to Revenue Hub, around 97% of millennials upload photos on social media during their travels and around 71% of travel agencies report better customer interactions when committed to social media strategy. Therefore, the demand for social media marketing and management is increasing.

REGIONAL INSIGHTS

Based on region, the market is studied across North America, South America, Europe, Middle East & Africa, and Asia Pacific.

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North America holds the highest market share by region and is expected to continue its dominance in the coming years. This dominance is due to the growing adoption of social media marketing solutions among the region's tech-savvy population. The demand for these solutions has led to an increase in the number of social media users across the region, estimated to reach 447.8 million in 2023 in North America. Facebook ranks as the top social media platform in the U.S., with around 74.2% of adults using it. As the platform is the top social media platform, around 23.6% of businesses are using it to promote their products. Many giants companies including L’oreal and American Airlines are adopting social media management tools to  foster customer growth, analyze sentiments, and identify retention strategies in the region.

On the other hand, Asia Pacific is predicted to showcase the highest CAGR during the forecast period, owing to increasing social media users due to technological developments in the region. The region is gradually experiencing faster broadband speeds and stronger internet access, leading to a increase in number of social media users. Through the fast growing commerce industry, social media platforms are gaining traction to review, shop, and discover new products. Furthermore, social networking sites have also allowed people to connect on a professional basis, with internet users all over the Asia Pacific region stating to use social media for work purposes. This accounts for 52.2% of global social media users and is central to Facebook’s growth, with more than 426 million monthly active users.

Europe is expected to grow at a moderate CAGR during the forecast period, owing to rapid digitalization and rising investments in digital platforms. Countries such as Germany, the U.K., and France are among the countries that have majorly influenced market in recent years. However, in the coming years, it is estimated that Spain will register a high CAGR during the forecast period. This estimation is due to the increase in social media users and its effect on digital and social advertising, creating a place of opportunity for any network aiming to invest in the country.

The Middle East & Africa and South America are expected to experience moderate growth rates, holding smaller portion of the overall social media management market share. These regions are majorly influenced by the growing popularity of social media marketing tools among the youth.

KEY INDUSTRY PLAYERS

Continuous Investments by Key Players Indicates Positive Growth for the Market

Key players operating in the market are continuously engaged in investments regarding product enhancements, strategic acquisitions, relevant partnerships, and collaborations. These strategies help them enhance their technological expertise and better serve their customers. In addition, companies operating in the market have been investing in emerging technologies, such as Artificial Intelligence (AI) to revolutionize their technological aspects. Furthermore, small businesses in the market secure funds to grow their marketing management platform expertise and expand their global presence.

List of Top Social Media Management Companies:

• HubSpot, Inc. (U.S.)


• Sprout Social, Inc. (U.S.)


• Hootsuite Inc. (Canada)


• Zoho Corporation Pvt. Ltd. (India)


• SOCi, Inc. (U.S.)


• Vista Social LLC (U.S.)


• Meltwater (U.S.)


• Sprinklr, Inc. (U.S.)


• Semrush (U.S.)


• SocialDog, Inc. (Japan)

KEY INDUSTRY DEVELOPMENTS:

• September 2023 – Sprinklr introduced an enhanced version 18.8 of its Sprinklr AI+ platform, incorporating OpenAI's GPT models and Google Cloud's Vertex AI. The upgraded version also provides generative AI expertise for customer service, insights, social media management, and marketing.


• August 2023 – Sprout Social, Inc. acquired Tagger Media, Inc., specializing in marketing and social intelligence platform. With this acquisition, the company aimed to strengthen its position in the social media software market. The acquisition also upgrade its platform to deliver comprehensive workflow, reporting, and intelligence.


• August 2023 - MW Investment B.V., an entity equally controlled by Marlin Equity Partners and Altor, acquired Meltwater. Meltwater provides organizations with a comprehensive suite of solutions that includes media, social, consumer, and sales intelligence. This acquisition brought opportunities for the company and helps to improve customer service.


• August 2023 – Disctopia, a specialist in podcast hosting and a streaming platform, partnered with Semrush to leverage the company’s SEO tools for better reach.


• July 2023 - SOCi Inc. introduced SOCi Surveys, enabling companies to accumulate continuous first-party feedback from end users. With these surveys, the company could make advancements in its customer experiences.

REPORT COVERAGE

The media management market report thoroughly analyzes the market and emphasizes vital aspects such as crucial companies, solution/service types, and principal applications of the solution. In addition, the report provides insights into the ongoing market trends and highlights recent industry developments. Furthermore, the report integrates several factors that contributed to the growth of the market in recent years.

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Report Scope & Segmentation