Global Web and Mobile Analytics Market Mobile Emerges as a Stand-alone Segment; Predictive Analytics is the Secret Sauce for Monetization

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1 Global Web and Mobile Analytics Market Mobile Emerges as a Stand-alone Segment; Predictive Analytics is the Secret Sauce for Monetization August 2014

2 Contents Section Slide Number Executive Summary 5 Market Overview 11 Total Web and Mobile Analytics Market Drivers and Restraints 31 Forecasts and Trends 44 Application Vertical Analysis 58 Market Share and Competitive Analysis 63 Web Analytics Segment Breakdown 75 Mobile Analytics Segment Breakdown 84 3

3 Contents (continued) Section Slide Number Technology Trends 95 Market Trends 100 Hot Company Watchlist 104 The Last Word 108 Appendix 112 4

4 Key Findings Although online analytics platforms have existed for over two decades, an exponential increase in the amount of data generated on the Internet has precipitated an inflection point within the online analytics industry. The traditional modes of measurement, which allow for guesswork, are outdated, and marketers now demand definitive models around metrics that help them identify the perfect digital marketing mix. This fundamental paradigm shift has led to a complete overhaul of online analytics, one that emphasizes real-time data used to identify key drivers that impact a given business. Online analytics solutions are realigning value propositions to help marketers determine the return on investment (ROI) from their digital marketing technologies. A majority of online analytics use cases target advertising optimization, audience segmentation, shopping cart optimization, home page optimization, and forms regeneration. Attribution modeling is a prime focus area for vendors of online analytics, as organizations accept that they need to optimize their online and offline marketing channels and determine accurate budgets across each channel for maximum returns. Source: Frost & Sullivan 6

5 Key Findings (continued) Mobile analytics is a new area of innovation for analytics vendors as a remarkable increase in the usage of mobile devices boosts revenue opportunities, especially for publishers and advertisers. This trend has spawned a new breed of stand-alone mobile analytics solutions for supporting the optimization of mobile applications and services. The total Web and mobile analytics market reached $ billion in 2013 revenue and is expected to grow at a compound annual growth rate (CAGR) of % to reach $ billion in Vendors must overcome complexities of multi-channel marketing, attribution, and data siloes to help customers accelerate ROI of their solution. A number of organizations are testing the waters, trying to break from their old methods of measurement and embrace newer, more sophisticated analytics solutions capable of analyzing short- and long-term effects of multi-channel marketing across Web, mobile, and social channels. The industry is experimenting with newer pricing models and strategies that incorporate online analytics in attempt to maximize profits, sales, and market share. Source: Frost & Sullivan 7

6 Market Engineering Measurements Total Web and Mobile Analytics Market: Market Engineering Measurements, Global, 2013 Market Overview Market Stage Market Revenue Base Year Market Units* Market Size for Last Year of Study Period Growth $ B + $ B (2013) (2020) Compound Annual Growth Rate Market Concentration Degree of Technical Change Customer Price Sensitivity % % (CAGR, ) (market share held by top 3 companies) (scale:1 [Low] to 10 [High]) (scale:1 [Low] to 10 [High]) For a tabular version, click here. Decreasing Stable Increasing *A unit is defined as one enterprise software license. Note: All figures are rounded. The base year is Source: Frost & Sullivan 8

7 Market Engineering Measurements (continued) Competitor Overview Number of Competitors* Number of Companies that Exited Number of Companies that Entered (active market competitors in 2013) (2013) (2013) Total Addressable Market Replacement Rate Industry Advancement Average R&D Spend as a Percent of Revenue + Years % (average period of license renewal) (2013) Decreasing Stable Increasing *Companies with revenue more than $5.0 M Note: All figures are rounded. The base year is Source: Frost & Sullivan 9

8 CEO s Perspective Mobile analytics is a game changer for advertisers as mobile advertising is set to explode. Monetization becomes key. Companies that can translate predictive insights from Big Data into a consistent mobile experience will have an edge over competitors. Last-click attribution is passé. Attribution modeling will become the new norm to help organizations focus on the most profitable marketing channels. 4 Vendors that can help companies find the attribution model to best suit specific business needs will succeed. 5 Whether mobile analytics becomes a standalone solution category will depend on how the industry adopts mobile as a primary revenue generator. Source: Frost & Sullivan 10

9 Market Overview Scope Scope Geographic Coverage Global Study Period Base Year 2013 Forecast Period Monetary Unit US Dollars Source: Frost & Sullivan 12

10 Key Questions this Study will Answer What is Web and mobile analytics? How has the market evolved over the past few years with the growth of ecommerce and mcommerce? What are the types of online analytics solutions in the market? How is the market structured? What are the disruptive market trends? Where are the opportunities? What are the use cases for online analytics? What are the implications of market consolidation for existing stand-alone online analytics vendors? What are the key technology trends that will change the market landscape? How can vendors of online analytics plan for the changes around multi-channel marketing and optimization? Source: Frost & Sullivan 13

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