Juniper Research, the renowned experts in mobile messaging, has revealed the two dominant markets fueling the rapid adoption of Customer Data Platforms (CDPs) in 2023 as Retail and Digital Media Enterprises.
Together, these two sectors are projected to account for an impressive $1.5 billion in global spending this year, surpassing 70% of the total market value. Moreover, the research forecasts this value to skyrocket to a staggering $5.2 billion by 2028.
The driving force behind this exponential growth lies in the increasing integration of CDPs, which identify users and their preferences, into Communication Platforms-as-a-Service (CPaaS) platforms. This integration is set to revolutionize the way enterprises offer personalized services, including content recommendations and upselling opportunities.
The recently released report titled “Customer Data Platforms: Market Forecasts, Business Strategies & Country Readiness Index 2023-2028” emphasizes the need for CPaaS vendors to fully integrate CDPs into their platforms.
By doing so, enterprises can effectively centralize the management of outbound communications and marketing campaigns, ultimately maximizing their return on messaging expenditure.
Elisha Sudlow-Poole, the author of the report, highlights the significance of CDPs for enterprises, stating, “Enterprises will not be able to fully realize the benefits of a CDP unless it has full access to user traffic data provided by CPaaS platforms. The retail and media spaces are prime examples as CDPs provide targeted communication and personalized recommendations; a key differentiator in these highly competitive markets.”
One key takeaway from the report is the debate between buying pre-built CDP solutions versus building bespoke CDP solutions for CPaaS platforms.
According to Juniper Research, if a CPaaS platform chooses to buy an off-the-shelf CDP solution, it may not meet all the unique business requirements of that particular platform. Instead, the report recommends that CPaaS players develop their own customized CDP solutions to ensure a perfect fit.
However, it also warns that the bulk of the investment in building a CDP lies in real-time data collection from multiple channels to deliver maximum value to enterprise users.
As the retail and digital media industries continue to drive the expansion of the CDP market, companies are advised to take a proactive approach to leverage this technology fully.
Integrating CDPs into CPaaS platforms will enable enterprises to stay ahead in their respective competitive landscapes and capitalize on the opportunities presented by personalized services.
