Customer Data Platform Industry Grew 71% in One Year; Will Reach $1 Billion Revenue in 2019

Customer Data Platform Industry Grew 71% in One Year; Will Reach $1 Billion Revenue in 2019

SWARTHMORE, PA, U.S.A., 8-Aug-2019 — /EuropaWire/ — The Customer Data Platform Industry continued its rapid growth in the first half of 2019, according to the CDP Institute’s semi-annual Industry Update. The industry added nineteen vendors and raised $317 million in new capital during the period while employment was up 71% over the previous year.

Major shifts in the market included expansion in Europe, EMEA, and APAC. Fifteen of the nineteen new CDP vendors are from outside the U.S. The Institute also confirmed its projection for the CDP industry to reach the $1 billion revenue in 2019.

Other milestones the report were:

  • More Funding. Cumulative funding for the industry grew by $680 million, reflecting funding during the period plus previous funding for vendors just entering the industry.
  • Strategic acquisitions. The period saw two CDP acquisitions: data integration specialist Allsight by Informatica and B2B CDP Lattice Engines by Dun & Bradstreet. Neither buyer is primarily a marketing system vendor, illustrating the value that companies in related sectors now see in CDP functions.
  • Operational CDPs. The period also saw addition of three vendors with a primarily operational focus: two customer success systems (Gainsight and Totango) and one in healthcare (Healthgrades). These firms represent the leading edge of a new class of CDP vendors that is expected to grow rapidly.
  • Marketing Cloud entrants. Salesforce, Adobe, and Oracle all announced future CDP products that are expected to be available before the end of 2019. These attracted new attention and are expected to substantially expand CDP awareness and adoption.

Vendor Categories

The CDP Institute report groups CDP vendors into three categories based on the functions provided by their systems. Categories are:

  • Access. These systems gather customer data from source systems, link data to customer identities, and store the results in a persistent database available to external systems. This is the minimum set of functions required to meet the definition of a CDP.
  • Analytics. These systems provide data assembly plus analytical applications. The applications always include customer segmentation and sometimes extend to machine learning, predictive modeling, revenue attribution, and journey mapping. These systems often automate the distribution of segment lists to marketing automation or advanced analytics products.
  • Campaigns. These systems provide data assembly, analytics, and customer treatments. These treatments may be personalized messages, real time interactions, product or content recommendations, outbound marketing campaigns, customer journey orchestration, or other contacts. What distinguishes them from segmentation is they also specify the message to be delivered.

The CDP Institute also recognizes that an increasing number of firms offer a CDP as part of a larger operational system. Such firms are included in the campaign CDP category in this edition of the report but will likely be categorized separately, as “operational CDPs” in future reports. Marketing cloud vendors will be part of this new category.

Nearly all industry growth during the first half of 2019 came from campaign CDPs, which accounted for three-quarters of the new vendors and 95% of the 2,338 net new employees. Three large companies based outside the U.S. (Manthan, Flytxt, and Exponea) accounted for more than half of the increase. Twelve-month figures show employment growth of 30%, 68% and 99% among access, analytics and campaign vendors.

A free copy of the complete report is available at https://lp.cdpinstitute.venntive.com/DL2079-CDPI-Industry-Update-July-2019


About the Customer Data Platform Institute

The Customer Data Platform Institute educates marketers and technologists about customer data management. The Institute publishes industry news and educational materials, provides vendor comparison reports, builds directories of industry vendors and service firms, and offers Webinars, workshops, and consulting on related issues.

Customer Data Platforms are defined as “packaged software that maintains a unified, persistent customer database which is accessible to external systems.” They are the only types of packaged software specifically designed to create and share a complete view of each customer. Institute Founder and CEO David Raab named the Customer Data Platform category in 2013.

Media contact:

Susan Raab
sraab@cdpinstitute.org
914-241-2117

SOURCE: Customer Data Platform Institute

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