Tag Archives: CDP vendors

CDP Industry July 2021 Update: accelerated growth during the pandemic

MILFORD, CT, United States, 28-Jul-2021 — /EPR INTERNET NEWS/ — Customer Data Platform (CDP) vendors grew at a record pace during the first half of 2021, according to the CDP Institute’s latest Industry Update report. The semi-annual report found that a brief slowdown at the start of the Covid-19 pandemic was replaced by accelerated growth, increased funding, and strategic acquisitions as companies invested in CDPs to support pandemic-inspired transformation projects.

CDP vendors listed in previous reports added 6% more employees and 11% more venture funding during the first half of 2021, compared with 1% employment growth and 3% funding growth in the second half of 2020.

In addition, a near-record twenty new CDP vendors were added to the report. These were split about evenly between CDP start-ups and established businesses that added a CDP capability to existing products.

Industry growth is also reflected by a record eight CDP acquisitions and mergers during the period. Most buyers were customer engagement software vendors seeking a CDP to connect siloed components of multi-channel suites.

Growth was especially strong in the Asia Pacific region, whose share of industry vendors grew from 13% one year ago to 17%, share of employment grew from 10% to 14%, and share of funding grew from just 6% to 25%. Europe-based companies fell from 39% to 38% of vendors, from 32% to 28% of employment, and from 14% to 12% of funding over the same period.

The report estimates CDP Industry revenue for 2021 at $1.6 billion. This figure represents revenues for all CDP product sales worldwide, including CDP components within other systems such as marketing suites, message delivery systems, and ecommerce platforms. It does not include related services or in-house customer data system development.

SOURCE: EuropaWire

Customer Data Platform Industry Update January 2021

MILFORD, CT, United States, 4-Feb-2021 — /EPR INTERNET NEWS/ — Customer Data Platforms (CDPs) are increasingly embedded inside of larger systems, according to the CDP Institute’s latest Industry Update report. The semi-annual report found that ten of the 13 vendors entering the industry in the second half of 2020 provide campaign management or message delivery services in addition to the core CDP function of creating unified customer profiles. Such firms now account for 70% of the 133 CDP vendors identified in the report and 71% of industry employment.

Despite this trend, there is also strong demand for CDPs that provide only data management and analytics. Such firms actually grew the fastest of all CDPs types during the report period.

The report estimates CDP Industry revenue for 2020 at $1.3 billion and projects 2021 revenues will reach at least $1.55 billion. These figures measure revenues for all CDP product sales worldwide, including CDP components within other systems such as message delivery or ecommerce. It does not include related services or in-house customer data system development.

CDP employment grew by 25% in 2020, to just over 10,000, and the number of CDP vendors grew by 35% to 133. The COVID-19 pandemic resulted in deferred purchases by some potential buyers but accelerated purchases from buyers eager to improve their digital marketing capabilities.

The period saw several CDP acquisitions, most notably Twilio’s $3.2 billion purchase of Segment. In this and other deals, the buyer was a software company that planned to use the CDP as part of an integrated product stack. This contrasts with previous CDP purchases, which were often by firms outside of the software industry, such as Mastercard, who wanted to offer CDP capabilities to supplement other services.

About the Report

The CDP Industry Update Report provides detailed information on CDP vendors, employment, and funding broken by CDP type, location, founding year, and more. It includes four years of historical data collected at six month intervals. The report can downloaded for free at https://lp.cdpinstitute.venntive.com/DL2238-CDPI-Industry-Update-January-2021

SOURCE: EuropaWire

CDP Industry Update July 2020: revenue for 2020 estimated at $1.3 billion, 30% up YoY

SWARTHMORE, PA, U.S.A., 28-Jul-2020 — /EPR INTERNET NEWS/ — The Customer Data Platform industry continued to grow in the first half of 2020, but at a slower pace as cautious buyers absorbed pandemic-related budget cuts and assessed new entries from enterprise software vendors. The CDP Institute’s semi-annual Industry Update found a record number of new vendors entered the industry but that growth in employment and funding was the lowest in two years.

The CDP Institute estimates industry revenue for the 2020 at $1.3 billion, a respectable 30% increase of $1 billion in 2020. Enterprise software vendors listed for the first time include Adobe, Microsoft, Oracle, and SAS. These firms were added because they now offer products that meet the CDP Institute’s RealCDPTM standard. Estimated 2020 sales for these vendors are modest but are expected to grow rapidly in future years.

In all, a record twenty-two vendors were added to the report. More than half were U.S.-based and the majority offered campaign management and message delivery in addition to the core CDP function of building and sharing unified customer profiles. Most of these were large, established companies that were adding CDP to existing products. A minority were small, new companies that with products designed as CDPs from the start.  These were more likely to be based outside the U.S., with particular growth in Europe.

The period also saw a sharp slowdown in investment activity, with only one major acquisition (Evergage purchased by Salesforce) and one large funding round ($45 million for mParticle). There were no significant acquisitions made by CDP vendors and no CDP vendors left the industry. The preceding six month period saw six major funding events, three acquisitions of CDP vendors, four acquisitions by CDP vendors, and four CDP vendors ceasing to exist.

“The CDP industry was entering a transitional phase even before the pandemic, with increased competition from CDP capabilities embedded in larger systems,” said CDP Institute CEO David Raab. “The pandemic has accelerated this development and put increasing pressure on small CDP developers. But the need for CDP capabilities remains strong and many firms are prioritizing CDP investments as they prepare for the post-pandemic world. We expect that industry growth will accelerate as economic activity picks up and buyers have a chance to assess the new options that are now becoming available.”

A free copy of the complete report is available here.

SOURCE: EuropaWire

CDP Industry in Europe 2020 report: number of vendors grew by 73%; employment by 80% in 2019

SWARTHMORE, PA, U.S.A., 9-Mar-2020 — /EPR INTERNET NEWS/ — Europe’s base of home-grown Customer Data Platform vendors grew rapidly in 2019, according to the CDP Industry in Europe 2020 report from the Customer Data Platform Institute. The number of vendors grew by 73% and employment grew by 80% during the year. Estimated revenue for Europe-based firms reached €260 million.

Europe-based Customer Data Platform Industry growth

The high growth came despite a near-total lack of outside funding for new CDP ventures. Only one Europe-based CDP announcing funding during 2019, for €10 million, compared with €450 million for eleven non-European vendors. One result is that European industry growth came primarily from established firms adding a CDP product, rather than new CDP start-ups. Another is that most European vendors are substantially smaller than their external counterparts and are more likely to serve a single national market.

The European industry remains highly fragmented, no single vendor exceeding 10% market share and the top five vendors combined accounting for one-third of total employment. A dozen European countries have at least one native CDP although the United Kingdom, France, and The Netherlands are home to half of all European CDP vendors and 60% of employment.

The report also lists non-European vendors with a presence in the European market. The CDP Institute estimates these firms earned €100 million in Europe in 2019 and will reach €135 in 2020. It expects that 2020 revenue for Europe-based CDP vendors will reach at least €350 million. Revenue may grow even more quickly as global software firms including Salesforce, Adobe, Oracle, Microsoft, and SAP start selling their own CDP products in Europe.

The new study also includes market-by-market analyses from local vendors. Their consensus is that buyers now have a clearer understanding of the value provided by CDPs. But vendors say that buyers are still cautious, with longer purchase cycles in Europe than other markets and relatively few completed implementations. They expect that sales to accelerate in 2020 as CDPs become increasingly familiar and global software vendors further educate the market.

A free copy of the complete CDP Industry in Europe 2020 report is available here. The CDP Institute’s latest global CDP Industry Update is available here.

SOURCE: EuropaWire

The CDP Institute expects Customer Data Platform Industry revenue to be at least $1.3 billion in 2020

SWARTHMORE, PA, U.S.A., 11-Feb-2020 — /EuropaWire/ — Established Customer Data Platform vendors prepared for industry consolidation even as new firms entered industry during the second half of 2019, according to the CDP Institute’s semi-annual Industry Update. The industry added fourteen vendors and $236 million in new capital during the period while employment was up 64% over the previous year.

The CDP Institute estimates industry revenue for the 2019 at $1 billion and expects at least $1.3 billion in 2020. Growth will be driven by expansion outside the U.S. and entry of enterprise marketing vendors. Adobe, Microsoft, and Oracle all released RealCDPTM-compliant products during the period and Salesforce is expected to release one in mid-2020. RealCDP is the CDP Institute’s standard for capabilities required to provide expected CDP functions.

The dominant theme of the period was change. The period saw three acquisitions of CDP vendors by larger firms, four acquisitions of other firms by CDP vendors, seven major funding events, and the exits of nine firms through asset sales or repositioning. The trend continued in early 2020 with Salesforce’s February 3 acquisition of CDP Evergage. These developments show vendors positioning themselves to succeed in a crowded marketplace where no company has yet established a dominant position. The transactions were notably concentrated in the second tier of CDP vendors: eleven of the fourteen non-exit events involved firms ranking between 13th and 30th in the 101-company industry.

Significant CDP Industry Events, June 2019 – January 2020

Vendor Categories

The CDP Institute assigns CDP vendors to four categories based on the functions provided by their systems. Categories are:

  • 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.
  • These systems provide data assembly, analytics, customer treatments, and message delivery. Delivery is typically through email, Web site, CRM, or several of these. Products in this category often started as delivery systems and added CDP functions later.

A free copy of the complete report is available at https://lp.cdpinstitute.venntive.com/DL2129-CDPI-Industry-Update-January-2020

CDP Industry Update July 2019: Fifteen of the nineteen new CDP vendors are from outside the U.S.

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.

SOURCE: EuropaWire

CDP Institute Europe (CDPIE): European revenue for all CDP vendors will total at least €200 million in 2018, including €130 million for EU-based vendors

AMSTERDAM, 06-Sep-2018 — /EPR INTERNET NEWS/ — European companies that have deployed Customer Data Platforms are highly satisfied with their systems, according to a study released today by the CDP Institute Europe (CDPIE).

The survey found that the CDP was delivering “significant value” for 80% of CDPIE members who had completed a deployment. In total, 24% reported a CDP in place, another 34% had a deployment in process or planned within the next twelve months, and the balance had plans to deploy after the next twelve months, no plans to deploy, or didn’t know.

Other findings in the report include:

  • large consumer companies (over €100 million revenue) have a much more pressing need for CDPs, with 68% saying they had many disconnected marketing systems. This group is the core of the CDP marketplace worldwide. Only 26% of business-to-business companies have many disconnected systems.
  • large consumer companies are more likely to connect their systems with a CDP. A total of 86% had a CDP in place or were planning a deployment. By contrast, 52% of business marketers had no CDP deployment plans, reflecting the greater existing integration those groups reported.
  • Interest in CDPs extends well beyond marketing departments. Marketers accounted for just 40% of respondents at B2C companies, with IT (23%) and corporate management (17%) also heavily represented.
  • Over-all, CDP deployment in Europe is in early stages. Only 14% of CDPIE members at large consumer companies had completed their CDP deployment. We believe deployment rates are substantially lower among non-CDPIE members.

The full report can be downloaded here.

Customer Data Platforms are packaged software that builds a unified customer database which can be shared with other systems. The CDP Institute estimates that European revenue for all CDP vendors will total at least €200 million in 2018, including €130 million for EU-based vendors, and is growing above 50% per year. For details, see the CDP Institute’s CDP Industry in Europe Report and worldwide CDP Industry Update, both published in July 2018.

SOURCE: EuropaWire