LONDON--(BUSINESS WIRE)--According to the latest procurement intelligence report from Technavio, the global social media marketing (SMM) services market is expected to grow at a CAGR of 16.8% over the next five years due to an increase in the number of social media users that is leading to the development of effective brand campaigns.
The research report titled ‘Global Social Media Marketing Services market: Procurement Market Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
“During the forecast period, the global social media marketing services will be driven by the increase in the number of social media users,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “In addition, low costs in using SMM services, and consumers' reliance on peer generated reviews and comments while making purchase decisions will also drive the market,” adds Angad.
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Cost saving opportunities in social media marketing services
The adoption of various cost-optimization levers helps buyers of SMM services realize direct cost savings and enhance category management and value benefits (including reduced procurement complexities).
Technavio procurement experts have segmented the cost saving opportunities in the social media marketing services market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimization of procurement practices
- Bundling of services
Adoption of technology saving aspects
Technologies such as snap chat, live video streaming and use of chatbots enable highly interactive and creative campaigns which will help to enhance customer experience and generate cost-savings to the extent of 7% of total category spend.
Buyers prefer to engage with suppliers that help them in creating an effective social media strategy. This involves setting SMM goals and defining measurable objectives.
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Optimization of Supplier Competition
Competitive bidding is critical in the global SMM market. Technavio analysts suggest procurement of the right mix of resources based on experience, expertise, value-added services, and transparency in pricing.
Buyers need to engage with agencies that can help them in effectively measuring campaign performance to gauge its reach and take measures to retarget, if necessary.
Bundling of services saving aspects
One of the most opportunistic strategic cost saving levers in the global SMM market is the consolidation and unification of SMM activities. Organizations are looking to consolidate and source SMM activities such as media planning and buying and ad discounts from a limited set of preferred service providers as there is a growing need to unify their brands' message across channels.
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