Cost Saving Opportunities for the Global Social Media Marketing Services Market: Technavio

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.

Global social media marketing (SMM) services market is expected to grow at a CAGR of 16.8% over the next five years.

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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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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