Marketing Automation Market
Last month we wrote an article on the size of the marketing automation market. A couple weeks after writing the article we picked up David Raab’s article on “B2B Marketing Automation Industry Size and Segments”. David’s post presented some interesting data on the marketing automation market worth summarizing as a follow up to our last post on the industry.
The report shed some light on how many clients per company type are using marketing automation. Company type was split up into four categories using revenue ranges, defined below:
- Micro business: Under $5M in revenue
- Small business: $5M – $20M in revenue
- Mid-size business: $20M – $500M in revenue
- Large business: $500M+ in revenue
The report then estimates annual revenue of the marketing automation market for each segment, yielding $257.5M in annual revenue, which comes very close to our estimate of $200M in last month’s post. David’s estimate does not include smaller marketing automation vendors as well as B2C marketing automation vendors. When these vendors are included, the marketing automation market is around $325M in annual revenue.
Here’s a breakdown of estimated revenue per company type:
|Company Type||Customers||Revenue/Client/Yr||Annual Revenue||% Total|
Experts typically estimate about 2% to 5% of all businesses use marketing automation technology. Interestingly, actual penetration may be lower than that – particularly very small businesses (<$20M in revenue). It’s estimated that less than 1% of all micro and small businesses use marketing automation technology, which presents a huge opportunity for these businesses to grow and gain a competitive advantage in the market place. Using data from Manta about the number of companies in each revenue range we can estimate approximately half of all businesses are a candidate/fit for marketing automation. Based on this data we can estimate the footprint of the marketing automation market relative to the TAM (total available market).
Growth potential in the marketing automation market is huge. Micro and small businesses outside the manufacturing and high tech industries (current adopters) stand to gain the most. Lead Liaison uses marketing automation technology as part of our Revenue Generation Software. If you’re a business looking to adopt marketing automation below are a few additional resources to help:
- Risk of not using revenue generation software
- Revenue generation for marketers
- Revenue generation for sales
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