Wednesday, June 12, 2024

    70% of customer data platform spend driven by retail and digital media, and CPaaS will reap the rewards

    Juniper Research has identified the two leading markets driving CDP (Customer Data Platform) adoption this year: Retail and Digital Media Enterprises. Together, these two sectors will account for $1.5 billion of global spend in 2023; exceeding 70% of the global market value. Juniper Research forecasts that this will rise to $5.2 billion by 2028.

    The new report predicts that the increasing integration of CDPs, which identify users and their preferences, into CPaaS (Communication Platforms-as-a-Service) platforms, will enable enterprise users to provide personalised services, such as content recommendations and upselling opportunities.

    Find out more about the new report: Customer Data Platforms: Market Forecasts, Business Strategies & Country Readiness Index 2023-2028, or download a free sample

    CDPs must be integrated into core CPaaS solutions

    CDPs have historically been positioned as additional services that sit alongside CPaaS platforms; however, the report urges CPaaS vendors to fully integrate CDPs into their platforms. This will enable enterprises to centralise the management of outbound communications and marketing campaigns, and thus increase return on messaging spend.

    Report author Elisha Sudlow-Poole explains: “Enterprises will not be able to fully realise 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 personalised recommendations; a key differentiator in these highly competitive markets.”

    The report determined that if a CPaaS platform chooses to buy a pre-built CDP solution, it is unlikely that this solution will be able to meet all business requirements, as each CPaaS platform has unique data inputs. Instead, the report recommends that CPaaS players build their own bespoke CDP solution to ensure that it can adhere to the exact specifications of the CPaaS platform. However, it warns that the bulk of investment when developing a CDP will be in data collections from multiple channels in real‑time, to ensure the CDP provides maximum value to enterprise users.

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