2011 Marketing Automation Revenue Forecasted at $325 Million

Marketing automation vendors will earn $325 million revenue in 2011, according to industry analysts Raab Associates Inc.  This is 50% above 2010, which itself doubled revenue from 2009.

The figures come from Raab Associates’ B2B Marketing Automation Vendor Selection Toolkit (VEST),  and was gathered in May and June 2011. The VEST analyzes four industry segments: micro businesses (under $5 million revenue), small business ($5 million to $20 million revenue), mid-size business ($20 million to $500 million revenue) and large enterprises ($500 million revenue and higher).  For each segment, it provides client counts by vendor and estimated 2011 revenue for the entire industry.  Figures are:

  • Micro business: 60% of installations (12,000 ) and 18% of revenue ($60 million)
  • small business: 15% of installations (2,900) and 14% of revenue ($45 million)
  • mid-size business: 19% of installations (3,800) and 46% of revenue ($150 million)
  • large enterprise: 6% of installations (1,200) and 22% of revenue ($70 million)

The VEST provides nearly 200 data points on 18 B2B marketing automation products including Eloqua, Marketo, Pardot, HubSpot, Infusionsoft, Genius, Aprimo, Neolane, Oracle, Manticore Technology, TreeHouse Interactive, SalesFUSION, Silverpop, OfficeAutoPilot, MakesBridge, Right-On Interactive, LeadFormix, and Net Results.  Each system is scored against criteria for micro-business, small-to-mid-sized business, and large enterprises.  Results are plotted on a matrix to identify leaders, contenders, and outliers for each segment.

Interactive features let buyers create custom scoring weights, directly compare up to three vendors, and view explanations of the scoring criteria. The report also includes an overview of the marketing automation industry, a methodology for selecting the right vendor, and explanations of key marketing automation concepts.

This number seems very conservative when you consider that worldwide revenues associated with applications deliverable under a software as-a-service model are expected to increase to $20.6 billion by 2014, from an estimated $8.1 billion in 2009, according to a June 2010 report by IDC, a market research firm.  This represents a compound annual growth rate of 20.4% from 2009 to 2014. Marketing automation along with customer relationship management is one software segment that, in our view, is well suited for on-demand delivery.

Earlier this week Salesforce.com said revenue for fiscal 2012 will be $2.22 billion to $2.23 billion, up from prior guidance of $2.15 billion to $2.17 billion the company gave at the end of the first quarter.

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