Cascadia Capital

Sales & Marketing

Tech Industry Report
1H 2024

ATLANTA
AUSTIN
LOS ANGELES
MINNEAPOLIS
NASHVILLE
NEW YORK
SEATTLE
Disclaimer
This presentation is being furnished by Cascadia Capital, LLC (“Cascadia”) to the recipient and is intended as an outline of matters for informational and discussion purposes only. The
information contained in this presentation, including any market data and industry information, has been derived entirely from material supplied by public sources, which Cascadia believes to
be accurate; however, no independent verification of such material has been made and any estimates made by Cascadia based on material from such sources are by their nature inherently
inexact. Accordingly, Cascadia does not make any representation or warranty, nor is any such representation or warranty implied, as to the accuracy or completeness of the information
contained herein, and Cascadia is not responsible for any misstatements or omissions in this presentation. Cascadia has no obligation to update the information contained herein.

This presentation may include certain statements, estimates and projections with respect to a company, or industry, including certain forward-looking statements. Any such statements,
estimates and projections reflect various assumptions, which may or may not prove to be accurate or correct, concerning anticipated results and are subject to significant business, economic
and competitive uncertainties and contingencies, all of which are beyond the control of Cascadia. Accordingly, there can be no assurance that such statements, estimates and projections will
be realized. Such statements, estimates and projections are likely to vary from actual results and those variations may be material. No such statements, estimates or projections constitute a
guarantee, promise, forecast or prediction of the future and Cascadia does not represent or warrant that any estimates or projections will be achieved. Cascadia neither: (i) accepts
responsibility for or makes representations as to the accuracy or completeness of any forward-looking statements, estimates or projections contained in this presentation, nor (ii) undertakes
any obligation to update or revise any forward-looking statements, estimates or projections for any reason after the date of this presentation. All financial data in this presentation is provided
for informational and discussion purposes only.

Past performance is not necessarily indicative, or a guarantee, of future results. There can be no assurance that any Cascadia project will achieve comparable results as those presented
herein.

The information contained in this presentation is strictly confidential and may not be reproduced, distributed, disclosed or disseminated, in whole or in part, to any third party without the prior
written consent of Cascadia.

2
 Cascadia Capital Overview

Table of Contents • Founded in 1999, Cascadia is an independent advisory only investment bank, partnering with clients across the nation to deliver
outcomes globally. We have completed over 495 transactions globally and have seven office locations
• Cascadia leverages our bankers’ deep sub-vertical industry expertise to deliver a more highly specialized degree of knowledge,
positioning and process, resulting in premium valuation in a highly efficient process.

1
• Our commitment is to deliver a customized and unique process for each client. We integrate storytelling and positioning with best-in-
Macroeconomic Trends class financial and process rigor
• Cascadia focuses on optimizing outcomes, not just getting deals done. Often this includes advice to go to market later when the
combination of company and market elements are more ideal. We pride ourselves on delivering direct advice focused solely on the
Broad Sales and Marketing
2
best interests of our clients
Cascadia’s Sales & Marketing Technology Practice
Technology Trends • With a focus on innovative software solutions and differentiated technology, our expertise spans across the sales & marketing
landscape from omnichannel marketing & analytics to content marketing & events, eCommerce & customer experience and loyalty &
Omnichannel Marketing &
3
customer engagement

Analytics Subsector Omnichannel Marketing & Analytics: Omnichannel solutions facilitate seamless customer engagement across
diverse channels, including online, offline, social, and voice platforms. Analytics tools offer invaluable insights into
Content Marketing & Event
4
customer behavior and campaign performance, empowering businesses to make data-informed decisions and optimize
their marketing efforts, thereby increasing ROI
Subsector
eCommerce & Customer Content Marketing & Events: Solutions that empower businesses to effectively generate, curate, and distribute their

5 Experience Subsector
messaging across a variety of mediums including blogs, videos, social media and email communications as well as
virtual and in-person events/meetings, thereby fostering enriched interactions with customers, prospects and channel
partners in order to drive sales and cultivate deeper brand awareness

Loyalty & Customer

6 Engagement Subsector
eCommerce & Customer Experience: Solutions that facilitate online sales and enhance the overall customer
experience while shopping on digital channels. This includes eCommerce platforms for seamless shopping,
personalized experiences tailored to individual preferences, conversion optimization tools to maximize engagement
M&A and Capital Raise
7
and sales as well as comprehensive post-purchase customer support tools for ensuring satisfaction

Transactions
Loyalty & Customer Engagement: Solutions enabling businesses to engage customers across their journey, from
Cascadia Capital
8 Overview
pre-purchase to post-purchase. Incorporating loyalty, voice of the customer, social media, ratings & reviews, and
influencer marketing, these strategies drive sales and help engage with customers through a multitude of channels,
thereby fostering lasting relationships, amplifying brand presence and driving sales

3
Executive Summary
We are pleased to share our 1H • Despite market optimism, recent inflation data signals rate cuts might be further delayed as consumer prices rose 3.5% YoY in March.
2024 Sales & Marketing Mixed Signals Amid an Kathy Bostjancic, chief economist at Nationwide, said the “lack of moderation in inflation will undermine Fed officials’ confidence…” 1
Increasingly Patient
Technology Industry Report • However, the US job market remains robust with 275,000 jobs added in February, topping expectations as the unemployment rate has
Economic Outlook remained below 4% for two years, the longest such stretch in over 50 years 2
In this report, we cover
macroeconomic trends, broad sales
& marketing technology and • The sales & marketing technology industry is expected grow at a 17.1% CAGR reaching $1,393B by 2027. Strong growth is driven by
Robust Growth
subsector trends as well as an the proliferation of nascent technologies including AI as well as changing customer behavior, and increased focus on customer
Forecasted for Sales &
experience, and strained marketing budgets which are driving a renewed focus on analytics and efficiency
overview of the current M&A and Marketing Technology
• As the sales & marketing landscape continues to rapidly expand, competition increases leading to more innovation and differentiation
capital raise market including
multiples, recent transactions,
commentary and accompanying Increasing Competition
• As eCommerce competition continues to increase and customers are inundated with an influx of marketing content, businesses
analysis look to differentiate by leveraging personalization and enhancing the customer experience throughout their journey
Leads To Personalization
• Personalized marketing content and shopping experiences elevate customer satisfaction and brand loyalty, while also optimizing
& A Focus On CX
conversion rates and marketing efficiency, providing a unique advantage for businesses navigating heightened competition

• The continued proliferation of social media and the rise of influencers and the creator ecosystem has led to a significant acceleration
Teague Collins Social Commerce of social commerce. This trend is reshaping the way consumers discover, evaluate, and purchase products both online and offline
Managing Director Accelerates As Customer • Brands are increasingly leveraging social channels to directly engage with customers, tapping into the vast potential of social
Behavior Evolves commerce to drive sales, enhance brand awareness, and foster deeper connections with their audience in an increasingly digital-
TCollins@cascadiacapital.com
centric landscape

• With the rapid proliferation of generative AI, as well as advancements in ML and automation, the sales and marketing landscape is
Advancements In
undergoing a transformative shift by providing enhanced customer support, content creation, and customer engagement solutions
New Technologies
• Despite the popularity of generative AI, reliability continues to be an issue with a recent Purdue study showing that 52% of
Including Gen AI
Nikko Hellstern ChatGPT’s answers were incorrect – underscoring corporate concern over adopting AI on a wide-scale

Associate
NHellstern@cascadiacapital.com • Both capital raise and M&A transaction volume and multiples remain largely subdued compared to the peaks experienced in
M&A and Capital Raise
2021. However, in Q4 2023 both M&A and capital raise activity increased pointing towards a potential recovery in market activity
Transaction Volume
• There were 97 M&A transactions in Q4 2023 compared to 85 in Q3 2023. Capital raise volume also increased slightly with 80
Increased in Q4 2023
transactions in Q4 2023 compared to 73 in Q3 2023. For more details, refer to section 7 on slides 50-65

1 AP News
2 Reuters 4
Section 1

Macroeconomic
Trends

5
Macroeconomic Indicators (1/3)
Changes in consumer spending, inflation trends, and employment rates are reshaping the sales and marketing sector,
with implications for industry innovation, investment volume, and valuation multiples
Real Personal Consumption Expenditure (PCE) ($B) 1 Annual Inflation Rate in the US (%) 2
The Bureau of Economic Analysis reported a $84.3B (0.5%) rise in real PCE from The Federal Open Market Committee foresees a decline in US inflation in 2024, following a
December 2023 to November 2023, reflecting an increase in offline and online retail sales gradual shift downward from 8.5% in July 2022 to 3.2% in February 2024. This implies a
which in turn, impacts the sales and marketing landscape. As consumers continue to strong potential for the Federal Reserve to cut interest rates, which would positively impact
spend, businesses are compelled to adapt their strategies to cater to evolving consumer consumer spending, retail pricing, and overall conditions within the sales & marketing sector
preferences and capitalize on emerging market opportunities
$18,000 10.0% Annual Inflation Rate
$16,000 (Not seasonally adjusted)
$14,000 5.0%
$12,000
$10,000 0.0%

Nov-18

Nov-19

Nov-20

Nov-21

Nov-22

Nov-23
Aug-18

Aug-19

Aug-20

Aug-21

Aug-22

Aug-23
May-19

May-20

May-21

May-22

May-23
Feb-19

Feb-20

Feb-21

Feb-22

Feb-23

Feb-24
Aug-18
Nov-18

Aug-19
Nov-19

Aug-20
Nov-20

Aug-21
Nov-21

Aug-22
Nov-22

Aug-23
Nov-23
May-19

May-20

May-21

May-22

May-23
Feb-19

Feb-20

Feb-21

Feb-22

Feb-23

Feb-24
Unemployment Rate in the US – Sales and Related Occupations (%) 3 Federal Funds Effective Rate in the US (%) 4
The unemployment rate for sales and related occupations in the US peaked at 15.5% in Q2 During the last year and a half, the Federal Reserve has raised interest rates 11 times,
2020, but has since come down. Lower unemployment rates signal a stable job market, bringing the federal funds rate to a target range of 5.25% to 5.5% – marking the highest
currently fueling potential growth in consumer spending. This surge in consumer spending levels since early 2001. The last time the Federal Reserve raised rates at this velocity was
is presently driving demand for a wide array of products and services, including tech in the 1980s. However, easing inflationary pressure signals potential near-term rate cuts
solutions provided by companies operating in the sales and marketing technology sector
15.5%
5.3% 5.3%5.3%
9.5% 4.5% 5.0%
3.7%
6.2% 6.5% 6.2% 5.6% 2.4%2.4% 2.2% 2.2%
4.7% 3.6% 3.5% 4.1% 4.0% 4.1% 4.0% 3.4% 4.0% 3.7% 3.9% 4.0% 4.6%
3.3% 4.3% 1.6% 1.3%
0.8%
0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%

Q2'`19
Q1'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Q1'21

Q2'21

Q3'21

Q4'21

Q1'22

Q2'22

Q3'22

Q4'22

Q1'23

Q2'23

Q3'23

Q4'23

Q1'24
Q1'19

Q2'19

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q4'20

Q1'21

Q2'21

Q3'21

Q4'21

Q1'22

Q2'22

Q3'22

Q4'22

Q1'23

Q2'23

Q3'23

Q4'23

Q1'24

Unemployment Rate - Sales and Related Occupations, Not Seasonally Adjusted Federal Funds Effective Rate, Not Seasonally Adjusted

1 FRED Economic Data: Real Personal Consumption Expenditures

*The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with
2 U.S. Bureau of Labor Statistics: Annual Inflation Rates
3 FRED Economic Data: Unemployment Rate - Sales and Related Occupations
each other overnight
6
4 FRED Economic Data: Federal Funds Effective Rate
 Macroeconomic Indicators (2/3)
The shift in consumer behavior, digital commerce trends, and increased digital ad spending impacts the sales and
marketing sector – providing opportunities to innovate and adapt to changing market conditions
US Social Network Users, by Generation, 2023 - 2027 (Millions of People) 1 US Retail eCommerce Sales ($T), (%) 2
Over the next 4-5 years, Gen Z will likely lead in social media usage, showcasing habits that The retail and eCommerce sectors in the US are witnessing a stabilization in growth trends
both respond to and diverge from earlier generations. Projections indicate Gen Z will following three turbulent years. Analysis of product categories and digital buyer trends reveals
experience the fastest growth in social network users, with an approximate 4% CAGR from potential avenues for expansion within the digital commerce landscape. Forecasts suggest
2023 to 2027, while other generations may see slower growth or decline. Meanwhile, that trends in US retail and eCommerce sales will revert to their pre-pandemic trajectories,
millennials, with their substantial purchasing power and population size, continue to be a with online sales increasing 9.5% in 2023, reaching a total of $1.1T
vital demographic $1.7
$2.00

$0
$1.5 $1.80

$1.3 $1.4
$1.60

70 Baby Boomers (1946 – 1964) $1.0 $1.1 20.6%

$1.40

$1.0 17.8% 19.1%

16.6%
$1.20

60 14.7% 15.6% $1.00

Gen X (1965-1980) 14.7%

$0

$0.80

50 11.0% 11.3%
$0.60

17.3% 8.6% 9.5% 10.5% 10.8%

40
$0.40

Millenials (1981-1996) $0.20

30
$0 $0.00

2023 2024 2025 2026 2027 Gen Z (1997-2012) 2021 2022 2023 2024 2025 2026 2027
Note: Internet users who use a social network via any device at least once per month eCommerce Sales ($T) % of Total Retail Sales % Change

Digital Ad Spend in the US ($B) 3 US Curbside Pickup Sales, 2019 - 2026 ($B) 4
The recent deceleration in the growth of US digital ad spend mirrors a cautious economic From 2019 to 2022, the US experienced growth in curbside pickup sales, increasing from
outlook as many businesses have experienced a slowdown in sales and thus, reduced their $35.7B to $90.1B with levels projected to increase further to $131.7B by 2026. Although
marketing spend. However, ad spend is expected to rebound in 2024 growing 11.2% and the pace of growth is expected to decelerate slightly post-2023, it will continue at a robust
reaching $294B. This points towards an increase in optimism and a resurgence in activity double-digit rate, reflecting a strong and ongoing market demand. This sustained
as increased ad spend serves as powerful tailwind in the sales and marketing sector expansion underscores the importance of the development of technologies that enable
efficient click-and-collect processes
70.1% 71.8% 74.6% 76.5% 79.0% 80.6% 82.4% 90.0%

$450

$395
80.0%

$109.4 $120.1 $131.7

$325 $359 70.0%

$99.4
$294 $82.2 $90.1
$72.8
60.0%

$300

$221 $245 $264 50.0%

$35.7
40.0%

37.6% 10.6% 11.2% 10.9% 10.3% 10.0%

30.0%

7.8%
$150

20.0%

10.0%

2019 2020 2021 2022 2023 2024 2025 2026

$0 0.0%

2021 2022 2023 2024 2025 2026 2027

Note: Includes products or services ordered using the internet, regardless of payment method, for pickup in a store, curbside, or from a locker
Digital Ad Spending % Change % of Total Media Ad Spending in a retail location or pickup hub; excludes travel and event tickets, payments such as bill pay, taxes, or money transfers, food services and
drinking place sales, gambling and other vice goods sales.

1 eMarketer, May 2023

2 eMarketer, June 2023
3 eMarketer: US Ad Spending 2023 ​ 7
4 eMarketer, Dec 2022
Macroeconomic Indicators (3/3)
Fluctuating consumer confidence and significant D2C eCommerce sales growth highlights the pivotal role of sales
and marketing technology in adapting to changing market dynamics and consumer behaviors
US D2C eCommerce Sales for Established Brands vs Digital Native Brands ($B) 1 Global Consumer Confidence Index 2
In 2023, direct-to-consumer (D2C) eCommerce sales of well-known brands in the US hit $134.6B, with sales from The Global Consumer Confidence Index has experienced
digitally native vertical brands (DNVBs) reaching $34.8B. The surge underscores a broader embrace of D2C significant fluctuations amid unstable market conditions. Despite
approaches by established companies such as Nike and Lululemon, inspired by the pioneering efforts of online- reaching an all-time high in Dec 2021, levels have significantly
first entities like Dollar Shave Club and Warby Parker. As a result, there is a growing need in sales and marketing decreased, pointing towards an improved market outlook.
technology for platforms and tools tailored to meet the unique needs of established brands, encompassing Nonetheless, historical volatility has spurred businesses to
solutions in eCommerce enablement, omnichannel marketing, and data analytics embrace advanced technologies and refine digital strategies,
striving to maintain agility and responsiveness to evolving
consumer preferences and to ensure a smooth customer
Established Brand D2C eCommerce Sales Digitally Native Brand D2C eCommerce Sales experience amidst fluctuating market conditions

5
$39.9

4
$37.4
$186.6 3 Index
$34.8 Value
$34.2
2
$159.8
$32.4
1
$27.1 $134.6
$115.8
0
$19.3
$95.9
(1)
$75.2
$57.1
(2)

Sep-18

Sep-19

Sep-20

Sep-21

Sep-22

Sep-23
Jan-18

Jan-19

Jan-20

Jan-21

Jan-22

Jan-23

Jan-24
May-18

May-19

May-20

May-21

May-22

May-23
2019 2020 2021 2022 2023 2024 2025

1 eMarketer, March 2023

2 U.S. Bureau of Labor Statistics: Annual Inflation Rates
8
Section 2

Broad Sales &

Marketing Trends

9
Sales & Marketing Technology Industry Insights
The Sales & Marketing market is expected to reach $1,393B by 2027, demonstrating a 17.1% CAGR, driven by
nascent technologies, changing customer behavior, increased competition, and a focus on customer experience

Sales & Marketing Technology Industry ($B) 1 Growth Drivers

Nascent technologies such as generative AI, advancements in ML, and powerful
automation are transforming the sales & marketing landscape
$1,393B
$742B An increased focus on customer experience, as a way to differentiate, has led to
$622B
more investments in customer support, success and loyalty solutions

Leveraging advanced analytics to make data informed decisions and better

understand customer behavior, thereby improving customer experience
2022 2023 2027
• The sales and marketing technology industry was valued at $742B in 2023 and is The continue proliferation of social media and the outsized influence it has on
purchasing decisions has led businesses to invest in social commerce tools
anticipated to reach $1,393B by 2027, growing at a 17.1% CAGR
• Strong growth is driven, in part, by nascent technologies such as Gen AI, changing Key Challenges
customer behavior, increased competition, and a focus on customer experience 2
As marketing budgets remain strained amid an uncertain macroeconomic
• The global omnichannel marketing subsector is growing at a 21.3% CAGR and is
environment and companies face investor pressure to reach and maintain
expected to reach $77.5B by 2027 while the global marketing analytics software profitability, executives are scrutinizing marketing spend more heavily and
subsector is growing at a 12.8% CAGR and is expected to reach $11.5B by 2029 looking to increase efficiency and focus on the most essential marketing tools
• The global content marketing subsector is growing at a 16.9% CAGR and is expected
to reach $902B by 2027 while the US corporate events market is growing at a 17.3% Concerns over data privacy have led to shift in marketing strategies as the
CAGR and is expected to reach $511B by 2030 significant reduction in cookies has made targeting and attribution more difficult,
resulting in increased focus on first-party data as well as other work arounds
• The global eCommerce platform market is growing at a 12.7% CAGR and is expected
to reach $9.9B by 2027 while the global customer experience management market is Increasing eCommerce competition has led brands to differentiate by enhancing
growing at a 17.9% CAGR and is expected to reach $43.4B by 2029 the customer experience with personalization, customer support and post-
• The global loyalty management market is growing at a 22.3% CAGR and is expected purchase engagement. The rapid increase in new sales & marketing solutions
to reach $14.5B by 2027 while the global customer engagement market is growing at has expanded the ecosystem and led to increased competition, thereby
a 10.8% CAGR and is expected to reach $32.2B by 2027 accelerating innovation and providing a more competitive environment

1 Estimated market size

2 Sources referenced throughout the report
Note: The global sales and marketing technology market size has been estimated by consolidating the sub-sectors' market sizes, incorporating estimated CAGR, and other relevant data. 10
The Modern Customer Journey
In today’s digital age, the modern customer journey is dynamic and multifaceted encompassing a variety of
touchpoints and channels – thus, emphasizing the importance for businesses to adopt a thoughtful strategy

Pre-purchase Discovery & Consideration Post-purchase Retention & Loyalty

jdsf
Awareness Education Evaluation Conversion Success & Support Advocacy & Loyalty

The initial phase where consumers Consumers seek After researching the The decision is made to Customers are onboarded Happy customers become loyal
become acquainted with a brand, information & knowledge product or service, purchase the product or and receive post-purchase advocates, promoting the brand
product, or service in order to make an consumers assess and service, and the customer support and assistance to through word-of-mouth and
informed decision compare options moves forward with the ensure a successful positive reviews, thereby helping
• Email marketing transaction experience to grow brand identity
• Event sponsorships • Blogs & articles • Ratings & reviews
• Public relations & media • Search & SEO • Consultations with sales • Personalized • Self-service & FAQ • Creating UGC & social posts
• Video marketing • Whitepapers & case representatives recommendations • Account managers • Loyalty & referral programs
• Outbound marketing & SDRs studies • Free trials & demos • Upsell & cross-sell • Customer support • Affiliate Links
• Social & influencer marketing • Webinars & events • Word of mouth • Seamless checkout • Email & chatbots • Exclusive offers
• Content marketing • Customer reviews & • Blogs & articles • PDP optimization • Onboarding experience • Blogs & articles
• Word of mouth testimonials • Organic search • Discounts & pricing • Training & education • Online and offline reviews
• User-generated content • Directories & listings • Research relations • Conversion optimization • Configuration support • Word of mouth

11
Digital Transformation in Sales & Marketing
As consumer behavior continues to shift and technological advancements enable powerful tools, digital
transformation in the sales & marketing sector is accelerating, leading to a diverse and fragmented landscape
Enhancing Marketing with Digital Transformation Marketing Automation Tools
• In the current fragmented sales & marketing landscape, businesses have a plethora of solutions • AI-powered automation has revolutionized digital marketing, streamlining
to chose from as they continue to ramping up their spend on digital solutions intricate processes like content creation, lead generation and email
• The evolution of digital technologies enriches customer insights, facilitating targeted strategies campaigns in order to increase efficiency and drive growth
and enhanced outcomes through actionable data
• This advancement aids businesses in achieving greater alignment between marketing and sales Marketing
Automation
teams, thereby optimizing opportunities for success in both the current and future landscapes
Tools Available
in the Industry
Based on a recent industry research, 58% of marketing leaders have reallocated budgets
from traditional to digital channels to enhance online visibility 1
Furthermore, the study indicated that 71% of senior marketers and 61% of mid-level Key Features of Marketing Automation in Digital Marketing
marketers bear the responsibility for driving digital transformation within their organizations,
indicating a growing emphasis on digital transformation within senior decision makers 1
CRM Systems Email Marketing
1
Global Digital Ad Spend ($B) 2 2 Marketing
Social Media Automation Digital
• The surge in digital ad spending reflects the acceleration of digital transformation in marketing, in Digital
Marketing Advertising
with businesses investing in analytics, automation, and personalization to meet changing Marketing
consumer behavior and to optimize digital channels
Content Marketing Sales Automation
$855 $910 $965
$740 $799
$614 $680
$569
$433 • Integrating marketing automation with CRM enhances customer journey
$366
management and unifies sales and marketing for an improved experience

• For instance, in 2023, Salesforce 3 enriched its CRM

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 platform with Einstein AI analytics, providing businesses
Video Advertising Search Advertising Influencer Advertising with tailored customer insights and ensuring robust data
security and adherence to privacy laws
Classifieds Banner Advertising Audio Advertising
1 Digital Marketing Institute - ‘The Marketing 2 Statista
Evolution- Leadership, Transformation, Skills, 3 Salesforce
Challenges & the Future’ 2022 Research 12
Generative AI is Bolstering Sales & Marketing Technology
Generative AI is transforming sales & marketing through continuous innovation, driving customer experience,
growth, and productivity, with industry adoption and investment on the rise

Revolutionizing Sales & Marketing Tech with Gen AI

• The emergence of Gen AI is reshaping sales technology as it becomes increasingly integrated into
solutions, driving innovation and efficiency in sales processes Commercial Leaders' Expectations for Gen AI Across Use Cases
in Sales & Marketing 1
McKinsey suggests that around 20% current sales-team functions, such as customer outreach,
lead identification, sales presentations, and customer service, could be automated, potentially % of survey respondents
According to 2023
opening the door for the further integration and adoption of Gen AI 1 Lead identification 60%
McKinsey survey,
• Gen AI is also transforming marketing as businesses leverage advanced algorithms and data Marketing optimization 55% commercial
analytics to gain deeper insights into consumer behavior, personalize marketing strategies, and Personalized outreach 53% leaders foresee
optimize campaign performance, ultimately leading to more effective customer engagement Gen AI making
Dynamic content 50%
significant impacts
‒ However, Gen AI is not without its drawbacks. Despite the rise in popularity, reliability continues Up/cross-selling recs 50% in lead
to be an issue with a recent Purdue study showing that 52% of ChatGPT’s answers were
Success analytics 45% identification,
incorrect – underscoring corporate concern over adopting AI on a wide scale
Marketing analytics marketing
45%
optimization, and
A BCG study conducted in 2023 indicates how deeply and extensively Chief Marketing Officers Journey Mapping 45% personalized
(CMOs) are exploring Gen AI’s transformative power, benefits, and potential risks 2 Automated marketing 35% outreach, with over
Sales analytics 50% expecting
30%
of participants report their substantial
of CMOs plan to launch new Sales coaching 25%
organizations implemented Gen improvements
70% AI in core marketing functions
84% products and business models
enabled by Gen AI technology 2 A recent industry study revealed that 90% of commercial leaders expect to
utilize Gen AI solutions “often” in the upcoming two years 1
GenAI-Driven Marketing Automation
• Gen AI-driven marketing automation platforms empower marketers with predictive analytics to forecast trends, • According to a 2023 Gartner survey, 63% of marketing leaders
uncover opportunities, and preempt customer needs, refining strategies with insights from historical data intend to invest in generative AI within the next two years 4
• For instance, in 2024, Insider's predictive segmentation yielded a 381% increase in conversion rates for – Just over half of those believe the potential rewards of Gen AI
Facebook Ad campaigns without raising budgets while also attracting new customers 3 surpass its risks 4

1 Mckinsey
2 BCG
3 Insider.com 13
4 Gartner Survey
Strained Sales & Marketing Budgets
Chief Marketing Officers (CMOs) face budget shortfalls, driving a strategic shift toward digital strategies and AI-
driven martech investments to enhance ROI
CMOs’ Pivot to Digital Strategies amid Strained Budgets
• The evolution of marketing budgets in recent years has been notable, shaped by a multitude Marketing Budgets as Percent of Total Revenue (2019-23) 1
of economic factors and prevailing industry trends
• According to industry studies, in 2023, 71% of CMOs did not have sufficient budgets to fully 11.0%
10.5%
execute their marketing strategies 1

Post-pandemic
9.5%

Pre-pandemic
9.1%
• Despite increasing marketing expenses attributed to factors such as inflation, rising customer

Covid-19
acquisition costs and pressure for enhanced efficiency, marketing budgets have remained
6.4%
relatively stable recently, representing 9.1% of the total company revenue in 2023 1
– The slight decline from a 9.5% in 2022 underscores the pressure on CMOs to
efficiently manage their resources and navigate economic uncertainties stemming from
2019 2020 2021 2022 2023
the COVID-19 pandemic, all while working with tight budgets
– In 2022, marketing budgets recovered much of their losses from the prior year as pandemic-
driven budget cuts eased to some extent. However, in 2023 marketing budgets remained Share of Martech in Total Marketing Budgets, 2023 3
below the pre-pandemic levels
• As per a study by LXA, the share of
o This has led marketers to adopt efficient solutions and strategies in order to streamline
martech in marketing budgets has
operations and optimize resource allocation 21%
30% reached 30%, increasing 6% compared
o Despite reduced budgets, marketers need to adapt to evolving consumer behaviors and to 2022 3
preferences, leveraging the strengths of various channels to maximize reach and
• However, amidst this rapid expansion,
effectiveness in a dynamic market environment
experts advocate for a harmonious
28% blend between AI's capabilities in data
• According to the latest IPA Bellwether report, in Q4 2023 marketing budgets 21% analysis and automation, coupled with
surged with a 14.7% of companies increasing spending, the highest in nearly a human creativity and strategic thinking
Surge in decade, showing commitment to growth despite economic uncertainty 2 – This underscores the importance of
Marketing
Martech Agency/Services strategic marketing expertise and
Budgets • Businesses are optimistic about their 2024 and 2025 marketing investments,
thoughtful AI integration to uphold
in Q4 prioritizing events and direct marketing to strengthen their brand presence and Staff/Labor Media
effectiveness and brand image
2023 expand their market share

1 Gartner Survey
2 Marketing week
3 Performance marketing world – LXA’s 2024 Predictions 14
for Marketing & Sales Technology
Changing Landscape of Data Privacy
Amid increasing customer concerns, privacy regulations, and enforcement measures, digital marketers are adjusting
their data collection methods and privacy policies to ensure compliance
Rise in Enforcement Actions Due to Stringent Privacy Regulations Case Study: Growing Privacy Concerns Around TikTok
Stringent privacy regulations and US Adults Concerned & Confused About • In March 2023, Shou Zi Chew, the CEO of TikTok, testified at a House
consumers’ increasing desire for data How Their Data is Being Used 2 Energy and Commerce Committee hearing, addressing growing
protection are driving rapid changes in concerns about the platform’s potential threats to data privacy, national
industry practices % of US adults who say they are concerned security, and the online safety of children
about how the following entities use their data
• In 2023, a report by the International • These concerns and the fear that ByteDance (TikTok's China-based
Association of Privacy Professionals Companies 81% parent company) might be forced to share user data with the Chinese
revealed that 68% of global consumers government have led the federal government, as well as many states in
are either somewhat or very concerned the US, to ban the app on government devices
The Government 71%
about their privacy online 1
• The Consolidated Appropriations Act, 2023 (P.L. 117-328) has prohibited
the use of TikTok and other ByteDance services on devices belonging to
• A rise in privacy awareness has led to the implementation of comprehensive consumer
executive agencies. Various state governments have also adopted this
data privacy laws in several states across the US. Some of these laws, including
measure, banning the app on some or all state-owned devices
California's Privacy Rights Act, Montana’s Consumer Data Privacy Act, Oregon’s
Consumer Privacy Act, and Connecticut's Data Privacy Law, came into effect recently 3
– These laws give consumers more control over their personal data and impose new Shift Toward First-Party Data
compliance requirements on businesses
In the midst of growing concerns regarding data privacy, the use of third-party data for
– To comply with these new regulations, digital marketers are forced to change their
targeted advertising came under scrutiny, amidst a total spending of $22B in 2021
data collection methods and update their privacy policies

• In Sep 2022, Ireland’s Data Protection Commissioner fined Instagram ~$400M for • The vulnerability of such data to hacking underscores the need for a shift to first-party
violating children’s privacy under the General Data Protection Regulation (GDPR), data collection methods
prompting Meta to appeal despite updates to privacy settings 4 – Shifting to first-party data enhances reliability and allows tailored suggestions,
bolsters brand loyalty, and enables advertisers to optimize spending by targeting
– Further, child safety advocates emphasized the significance of effective
specific audiences
enforcement in protecting young users online, underlining the regulatory
– Proactively transitioning from third-party cookies fosters a competitive edge,
efforts such as such as the Children's Online Privacy Protection Act (COPPA)
maximizing advertising resources for sustainable growth amid changing policies
1 IAPP’s Privacy and Consumer Trust Report 5 Congressional Research Service
2 Pew Research Centre 6 Lifesight.io
3 Osano.com 15
4 csoonline.com
Shift from Third-Party Data to First-Party Data
Advancements in data collection, analytics, and privacy regulations are prompting businesses to prioritize first-party
data for personalized marketing, while privacy concerns lead to the discontinuation of third-party cookies

Use of First-Party Data for Enhanced Marketing and Data Privacy Rising Potential of First-Party Data
• Technological advancements pertaining to advancements in data collection, analytics, and privacy • Transition to first-party data enables businesses to gain detailed insights
regulations have transformed customers’ purchasing behaviors in both B2C and B2B realms, into customer behavior, leading to enhanced accuracy, increased
emphasizing the importance of gaining a deeper sense of customers’ needs reliability, improved conversion rates, and revenue growth

• The rising significance of first-party data stems from a departure from reliance on third-party cookies – This prompts a shift toward using Customer Data Platforms (CDPs)
for tracking and targeting, driven by escalating privacy concerns and regulatory shifts to ensure privacy compliance and optimize marketing spend by
̶ This underscores the imperative for businesses to effectively gather, manage, interpret, and targeting high-value customers through unified data profiles
protect customer-provided data for better decision-making
• EY, in collaboration with Adobe, has developed the
According to a 2022 report by Acquia, 88% 1 of marketers believe that the importance of Adobe Real-Time Customer Data Platform to
88% first-party data has increased since 2020 empower businesses, particularly B2B companies,
EY & Adobe to harness the value of first-party data for informed
Alliance5 decision-making
In January 2024, Google initiated 2 the process of gradually eliminating third-party
cookies in Chrome. As part of the testing phase, Chrome has implemented default
restrictions on third-party cookies for 1% of Chrome Stable clients and 20% of Canary,
Dev, and Beta clients. This represents a significant step forward in the journey towards • Marketers can rely on the accuracy of first-party data for precise
completely phasing out third-party cookies, with plans to extend these restrictions to segmentation and targeted advertising, thereby creating more effective
100% of users in the second half of 2024 campaigns based on purchase likelihood
• Furthermore, businesses face challenges while transitioning to third-party cookies, prompting a shift
• In 2021, the New York Times leveraged its largely
toward reliance on first-party data for targeted sales and marketing, driven by real interactions and
subscription-based model to gather valuable first-
engagement Increase in party data, creating more personalized experiences
Digital Ad and boosting digital ad revenue by over 20% 6
̶ This strategic pivot not only enhances privacy but also levels the advertising playing field,
Revenue
benefiting consumers through improved user experiences and fostering trust
Due to First-
̶ According to a Deloitte report, 73% 4 of participants believe that employing first-party data can Party Data
mitigate the effects of growing privacy concerns
1 Venture Beat 5 EY
2 Google 6 Ad Exchanger
3 Google 16
4 Deloitte
 Sales & Marketing Technology Market Map – Representative Landscape
Diversified Sales & Marketing Technology

Omnichannel Marketing & Customer Engagement & eCommerce & Customer Content Marketing &
Analytics Loyalty Experience Events
Emerging
Established

17
Section 3

Omnichannel
Marketing & Analytics
Subsector

18
Omnichannel Marketing & Analytics Industry Insights
The global omnichannel marketing and analytics market is experiencing significant growth, driven by advancements
in technology and consumers' expectations for cohesive brand experiences across platforms
Global Omnichannel Marketing Market Size and Growth ($B) 1,2 Global Marketing Analytics Software Market Size and Growth ($B) 3

$77.5B
$35.7B
$29.6B
$10.2 $11.5
$8.0 $9.1
$6.3 $7.1

2024 2025 2026 2027 2028 2029

2022 2023 2027
Forecast period 2023-27 Forecast period 2024-29

• The global omnichannel marketing market experienced significant growth, surging from • The global market for marketing analytics, which is valued at $6.3B in 2024, is
$29.6B in 2022 to $35.7B in 2023. Projections suggest a continued upward trajectory, anticipated to grow at a 12.8% CAGR reaching $11.5B by 2029
with an CAGR of 21.3% from 2023 to 2027, culminating in a market value of $77.5B by • Recent advancements in Gen AI and ML models have enabled real-time intelligence and
2027 predictive analytics, which is expected to be one of the most significant advantages of
– This growth is propelled by several key factors including advancements facilitating employing AI-based marketing analytics
data-driven marketing strategies as well as increasing demand by consumers for
• The proliferation of digital channels presents growth avenues for comprehensive
seamless brand experiences across various platforms assessment of marketing campaigns through analytics. This enables companies to
• Given these market dynamics, a cohesive approach to marketing is imperative, garner insights and conduct comparative analyses for refining strategies effectively
particularly integrating both online and offline channels to cater to the evolving
‒ For example, in May 2023, Mixpanel, an event analytics platform, introduced
preferences of today's digitally-oriented consumers
• During 2023, mobile marketing, as a subset of omnichannel marketing, held sway over Marketing Analytics, offering insights into user acquisition channels, optimizing
the entire market, leading to heightened product revenue and profit margins return on advertising spend (ROAS), and refining targeting through cohort analysis
– Mobile marketing leverages on-demand structures, omnichannel purchasing, and • As marketing budgets remained at suppressed levels, leveraging advanced marketing
consumer customization trends, emphasizing its essential position in contemporary analytics will continue to be key – thereby helping businesses optimize their resources,
marketing strategies identify cost-effective strategies, and maximize the impact of their marketing efforts

1 Fortune Business Insights Note: The global Omni-channel market size has been estimated by consolidating the sub-segments' market sizes, incorporating
2 Future Market Insights 4 Industry Arc estimated CAGR, and other relevant data. Additionally, the charts have been rescaled at some points to reflect historical trends
3 Mordor Intelligence 5 Spherical Insight wherever exact figures were not available 19
Omnichannel Strategy for Consistent Brand Communication
Leveraging an omnichannel strategy with unified communication ensures consistent brand messaging across all
platforms, thereby enhancing customer experience and brand trust

Omnichannel Strategy for Consistent Brand Communication

• In the current digital landscape, consumers engage with brands through an array of channels ranging from physical stores to websites, apps, and social media platforms – often being
heavily influenced by content creators and influencers
‒ The complexity of today's shopping environment requires embracing an omnichannel strategy to maintain cohesive messaging across all platforms, preventing brand message
fragmentation (i.e., the risk of messaging becoming inconsistent or disjointed across different channels and platforms) and maximizing campaign effectiveness
‒ An omnichannel strategy promotes communication consistency across all platforms, enhances brand identity, and fosters meaningful connections while allowing for smarter, data-
driven decisions tailored to audiences’ needs
According to a 2022 industry study, 75% of customers desire a consistent experience, regardless of how they engage with a company – for example, through
social media, in-person or by phone 1

Unified Approaches to Enhance Customer Experience Industry Use Cases

Consistent
Messaging A consistent messaging approach ensures that a brand's messaging remains consistent Nike uses a consistent approach across all its
Across across all channels, enabling seamless communication and engagement no matter how channels with a unified messaging strategy,
customers interact with the brand Unified
Platforms underlined by its “Just Do It” slogan, that
Messaging
promotes inspiration, innovation, and inclusivity,
Strategy
A unified communication platform centralizes various messaging tools and allows users to bolstering its position in the sportswear industry 2
Unified
manage them through a single interface. It enhances organizational efficiency,
Communication
streamlines user access, and eases data retrieval, thereby fostering collaboration and
Platforms Coke has consistently maintained its branding for
consistency
Consistent decades, with its iconic logo, color scheme, and
CDPs are centralized hubs that manage diverse customer data, offering unified profiles – Branding bottle shape remaining largely unchanged. This
Customer Data
comprehensive and consolidated records of individual customers, categorization of and Visual consistency has built an unparalleled global trust
Platforms
customers based on shared characteristics, behaviors, or attributes, and integration of Identity and presence 3
(CDPs)
this data into marketing tools to enable personalized experiences across channels
As technology progresses and customer expectations evolve, the outlook for unified business communication appears promising. Today's customers demand seamless, prompt,
and reliable communication across diverse channels. Unified communications meet these demands by seamlessly integrating a range of communication tools like messaging, video
conferencing, and collaboration platforms, offering a unified and intuitive experience
1 Zapier.com
2 Medium.com
3 Strikepoint media 20
Navigating a Cookie-less Future for Digital Marketing
As digital marketing approaches a cookie-less future, new tools and solutions have become essential for executing
personalized campaigns as well as accurate tracking and attribution

Embracing Cookie-less Marketing Strategies Cookie-less Attribution Techniques

• The digital marketing landscape is evolving as the reliance on cookies for • For effective marketing in a cookie-less world, businesses must adopt cookie-less attribution
data collection and personalization decreases techniques, such as Device Fingerprinting and Google Analytics server-side tracking, to ensure user
anonymity while providing valuable insights into web traffic sources and marketing metrics 4
– Driven by a stronger desire for data privacy among consumers,
marketers are adopting cookie-less marketing strategies, prioritizing – These techniques offer marketers greater control and accuracy than traditional cookie-based
first-party data and personalization to optimize ad campaigns approaches, where data-sharing with competitors is commonplace
effectively
• However, a 2022 study by Twilio’s revealed that: 1
• Device Fingerprinting involves compiling various data points, such as
of companies said they screen resolution, browser, and preferred color scheme, to assign distinct
were not fully prepared of companies were still Device user IDs to website visitors
55% for the impending
81% reliant on third-party Fingerprinting
cookies • Users undergo monitoring in a manner similar to the process with cookies
cookie-less world
while ensuring compliance with privacy regulations

• In January 2024, Google introduced Tracking Protection, which restricts • Server-side tracking involves sending data directly from a website's backend to a
third-party cookies by default, to 1% of Chrome users 2 server, bypassing the need for cookies and ensuring accurate tracking

– The move comes after years of anticipation for the end of • For instance, Google Analytics 4 (GA4) emerged as a pivotal tool amid the
third-party cookies transition to a cookie-less future in digital marketing 4
Server-
– One significant advantage is its ability to provide holistic insights across both
Side
• Granify, a conversion optimization platform, eliminates reliance on app and website-based tracking, enabling marketers to gain a comprehensive
Tracking
cookies and enhances online retailer sales through personalized smart view of user interactions regardless of the platform they engage with
messages triggered based on real-time visitor behavior analysis 3
– The company collects user behavior data, prioritizing user ID and In a cookie-less environment, marketers have the option to utilize alternative techniques for
timestamp to eliminate cookie usage monitoring user activity, including API-based tracking, which leverages data from web servers
or customer relation management (CRM) systems for advertising and marketing purposes

1 Twilio 4 Pathmonk.cmo
2 Campaign Asia
3 Granify 21
Advanced Attribution and Analytics to Measure Marketing ROI
Advanced attribution models and analytics tools help identify key revenue-impacting touchpoints in a complex
multi-channel environment, thereby simplifying the measurement of marketing ROI

Marketing ROI Measurement Amid Multi-Channel Interactions Advanced Attribution Models

• Marketing ROI is a crucial indicator that allows companies to assess the efficacy of their
Data-Driven Attribution (DDA)
marketing strategies and compare the performance of different campaigns Multi-Touch Attribution Models
Models
– However, understanding ROI and effectiveness of marketing campaigns can be Multi-touch attribution models assign
challenging due to complexity of tracking customer interactions across multiple channels DDA models use machine learning conversion credit across various
(ML) to dynamically assign credit touchpoints with different schemes, such as
to touchpoints based on data linear attribution, time decay, and
According to an eMarketer report, the average online customer analysis, offering accuracy for position-based attribution. These schemes
interacts with a brand 7.6 times before making a purchase, those with ample data but limiting determine how credit is distributed among
highlighting the complexity of the modern customer journey 1 small businesses with less data* touchpoints based on their roles in the
customer journey
Understanding multiple-touchpoint interactions is crucial for
marketers to properly allocate resources effectively across various • In 2023, Google discontinued four attribution models in Ads and Analytics,
channels, optimize campaigns, and ultimately enhance the overall namely First-click, Linear, Time decay, and Position-based 2
return on investment (ROI) • This stemmed from a notable decline in the utilization of rules-based attribution
models, primarily attributed to the introduction of DDA three years prior
• The difficulty in measuring marketing ROI can also be linked to the complexity of • Currently, less than 3% of conversion actions in Google Ads employ these
discontinued models. DDA stands out with the widest adoption and
attribution modeling
accessibility, as it is open to all businesses without any specific
‒ As customers engage with brands through various channels, it can be difficult to data prerequisites
attribute conversions to specific marketing efforts
Data Analytics Tools
o For example, direct interactions such as clicking an affiliate link after an ad are
easily traceable, but indirect paths, such as seeing a social media ad and later • Businesses can also address challenges related to marketing ROI
searching for the product on Google, complicate the measurement of campaign- measurement by leveraging data analytics and advanced tracking solutions
specific ROI such as Google Analytics and CRM systems
– For example, Marketing Evolution, an advanced analytics tool, helps
• To address these challenges, marketers adopt advanced attribution models, such as data-
marketers master the omnichannel landscape and generative attribution as
driven and multi-touch attribution models, and analytics tools that offer a unified and
well as improve customer insights and ROI 3
detailed view of customer interactions across channels
1 lifesight *While these models provide high accuracy for entities with substantial data, they may pose limitations for small businesses with
2 Google less data. This is because machine learning algorithms often rely on extensive datasets for training and may face challenges in
3 Marketing evolution.com effectively capturing patterns and insights in scenarios where data is limited, potentially affecting the precision of credit assignment 22
in smaller-scale businesses.
Cross-Device Attribution Models
Cross-device attribution models have become critical for accurately tracking customer journeys, optimizing
marketing strategies, and display campaigns across various customer channels
Optimizing Display Campaigns with Cross-
Adoption of Cross-Device Attribution Models by Businesses Device Attribution
• As customers interact with brands across multiple devices and channels, the need for accurate cross-device attribution
models has increased • Cross-device attribution became increasingly important
for display campaigns as of 2023
Cross-Device Attribution Model
– Data by Jemsu reveals that over 50% of digital ad
impressions span multiple devices, underscoring the
need for advertisers to assess campaign
Customer performance across devices 1
Display Ad Email Search Engine Social Media Affiliate Conversion
Journey
• Furthermore, cross-device attribution informs budget
allocation by revealing ad performance across devices,
• Cross-device attribution assigns credit to marketing touchpoints across devices like smartphones, tablets, and essential for optimizing marketing strategies
desktops, revealing their role in the customer's path to purchase
• In 2023, Gartner reported an 85% adoption rate of cross-
– This process enables marketers to optimize strategies based on which interactions most effectively drive device attribution among marketers, facilitating a
conversions and subsequent sales comprehensive evaluation of campaign effectiveness
• Sophisticated analytics platforms utilize diverse techniques to accurately attribute conversions across different devices and allowing for strategic optimization across devices 1
and channels, offering valuable insights into the efficacy of each interaction point
Microsoft Advertising’s Cross Device
Deterministic Attribution Probabilistic Attribution Algorithmic Modeling Attribution Model
• This attribution method uses • This approach uses algorithms • It involves the use of custom
personal identifiers such as email and ML to analyze data such as algorithms on large cross-device • In 2023, Microsoft Advertising updated its cross-
addresses, phone numbers, and IP addresses and browsing datasets to detect complex device attribution model to enhance tracking of the
login data to track actions across history, linking devices through patterns and achieve high match customer journey and connect customer journeys
devices. However, its use is statistical behavior patterns. Its rates. However, its transparency across devices 2
constrained by users' willingness accuracy hinges on data volume and accuracy is based on data • Microsoft reported that the model’s improved accuracy
to log in or share personally and quality and algorithm quality can lead to a small increase in the number of
identifiable information conversions in performance reports

1 Jemsu.com
2 Search Engine Land
23
Enhanced Engagement via Analytics
Adoption of visual and predictive analytics is reshaping omnichannel marketing, offering deep insights into
customer behavior, preferences and trends – thereby helping improve communication for enhanced the CX
Use of Visual and Predictive Analytics for Customer Engagement
• The increasing adoption of visual analytics tools and the enhancement of predictive analytics A key advantage of omnichannel analytics is its ability to provide
capabilities has transformed omnichannel marketing predictive insights, which enhances personalization and engagement –
– This transformation is driven by a need to understand and engage with customers across an thereby enabling businesses to tailor their marketing strategies more
ever-expanding array of channels and touchpoints effectively and strengthen connections with their target audience

• Visual data analysis tools, equipped with predictive analytics capabilities, facilitate quick visualization $31.3B
and analysis of complex data across channels, enabling marketers to anticipate customer needs
Global Visual
– These tools offer a comprehensive view of the customer journey, from first contact to the post- Analytics $6.9B
purchase journey, facilitating improved decision-making Market ($B) 2
– It also helps in optimizing omnichannel marketing by providing predictive insights into customer
preferences and enabling immediate campaign adjustments through cross-channel data 2023 2032

– A 2023 study by Dresner Advisory Services has revealed that 53% of organizations consider data During the forecast period from 2023 to 2032, North America is expected to
visualization and visual analytics a components of their business operations, underscoring the generate the highest revenue in the global visual analytics market, primarily
potential importance of visual tools in enhancing marketing-related decision-making 1 due to the growing emphasis on data analysis

Visual Analytics and Predictive Analytics Tools

Adobe Marketo Engage, a leading visual analytics tool, enables precise marketing
optimization by analyzing customer interactions at every touchpoint and identifying
the most effective strategies, with visually engaging reports 3

The increasing adoption of visual and predictive analytics in omnichannel marketing is driven by the need to understand and engage with customers across multiple
channels. These tools facilitate rapid data visualization, offer a comprehensive view of the customer journey, and empower marketers to optimize campaigns through
predictive insights – thereby underscoring the pivotal role of visual tools in decision-making and revenue growth

1 Dresner Advisory Services

2 Polaris market research
3 Adobe.com 24
Customer Data and Marketing Analytics
Tools such as Adobe's Real-Time CDP enhance personalization and strategy by leveraging comprehensive customer
data and analytics, enabling brands to tailor their marketing efforts based on individual customer preferences
Use of Customer Data and Analytics to Enhance Omnichannel Marketing CDP Tools for Customer Engagement and Ad Targeting 3
• In the evolving omnichannel marketing landscape, the trend of harnessing customer data and • Customer Data Platforms (CDPs) are centralized systems that collect,
analytics is gaining unprecedented momentum organize, and manage customer data from various sources to create unified
‒ A 2023 report from Martech.org revealed a significant number of marketing organizations and comprehensive customer profiles
consider their data and analytics capabilities to be at an early stage, with 47% viewing
themselves as "emerging“ players and only 10% as "leaders” in the data and analytics usage 1 • CDPs simplify omnichannel marketing by offering real-time data linkage and
integration across technologies, ensuring cohesive channel management
• The integration of customer data and analytics into marketing strategies has become essential
for meeting consumer demands and offering personalized experiences across various channels
• In 2023, Adobe unveiled upgrades in Adobe Real-Time CDP,
• Marketing analytics tools transform the way businesses establish and execute their marketing offering over 600B annual predictive insights from real-time
strategies customer profiles
– Unified Marketing Tools: These tools centralize multi-channel data for real-time strategy • Leading brands including Chipotle, The Dow Chemical Company,
optimization and comprehensive analysis, boosting campaign effectiveness and Novo Nordisk are using Adobe Real-Time CDP
• Meta has enhanced Facebook ad targeting and analysis by using
Adobe’s tool for privacy-compliant, personalized customer
According to Improvado, marketing analytics tools save 80-100 hours for sales and marketing engagement with first-party data
executives weekly by streamlining data collection and analysis and eliminating the need for • Adobe's Real-Time CDP analyzes 30T daily audience evaluations
manual data export and harmonization across platforms 2 to activate personalized, cross-channel campaigns for growth
‒ Budget Optimization: These tools identify high ROI strategies and highlight inefficiencies,
guiding businesses to reallocate budgets from low-performing to more productive initiatives CRM Tools for Centralizing Customer Data
• Customer Relationship Management (CRM) tools enhance omnichannel
Improvado also suggests that the adoption of an advanced marketing analytics solution can lead marketing strategies by centralizing customer data for personalized campaigns
to as much as a 30% improvement in marketing budget efficiency 2 and optimizing marketing performance through data-driven insights
‒ These analytics tools optimize decision-making and future planning by identifying effective HubSpot is a leading omnichannel marketing tool
strategies and market trends through data analysis renowned for its ease of use and comprehensive
features, including customer management, email
‒ 54% of companies that extensively use marketing analytics earn higher profits than the campaigns, sales automation, and detailed analytics
average 2 for effective strategy refinement 2
1 Martech.org
2 improvado.io
3 Businesswire 25
Section 4

Content Marketing &

Events Subsector

26
Content Marketing and Events Industry Insights
The content marketing and events industry is witnessing rapid growth, fueled by increased content consumption,
technological innovations, and the increasing adoption and importance of hybrid events

Global Content Marketing Industry Size and Forecast ($B) 1 Global Corporate Event Industry Market Size and Forecast ($B) 2
$902.1B

$483.0B
$413.2B
$511
$435
$316 $371
$230 $270
$143 $167 $196
$95 $122

2022 2023 2027 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Forecast period 2023-27 Forecast period 2021-30

• The global content marketing industry experienced significant growth, increasing from • In 2020, the US corporate event market was valued at $95B and is expected to grow at
$413B in 2022 to $483B in 2023 and is expected to climb to $902B by 2027 – a 17.3% CAGR reaching $511B by 2030
demonstrating a 16.9% CAGR. This surge in growth is partly attributed to the increased
• Corporate events help win new customers, strengthen relations with existing customers,
adoption of digital platforms and heightened consumption of content, particularly driven
by long-lasting changes from the pandemic manage channel partners, and enhance corporate culture and connectivity

• Video platforms made up the largest market share in the content marketing industry in ‒ Serving as a live form of content, corporate events play a pivotal role in sales and
marketing strategies, offering invaluable opportunities for networking, showcasing
both 2022 and 2023 – signifying the continued importance of video as a key channel
products or services, and fostering meaningful interactions with clients and
– According to HubSpot, social media marketers aimed to intensify their focus on short- prospects
form video content in 2023, with 33% of over 1,000 marketers intending to allocate
• The pandemic-driven shift towards hybrid and virtual events allows businesses to
their resources predominantly to this relatively new format 3
increase reach, reduce costs and gain more attendees by eliminating barriers
‒ Furthermore, in 2023, YouTube Shorts witnessed a substantial increase in monthly
users, surpassing 2B, up from 1.5B in 2022, indicating the widespread popularity of ‒ The launch of 'Production Studio’ by US-based Zoom Communications in August
2023, aims to equip event professionals with tools for creating refined virtual event
short-form video content on the platform 4
layouts, thereby guaranteeing engaging experiences for attendees

1 Allied Research 4 Techcrunch Note: Virtual Events Market does not cover in-person events
2 Research & Markets
3 Statista 27
AI-Based Tools Transforming Content Creation
Gen AI tools are revolutionizing content creation for marketing through automation and advanced capabilities,
allowing companies to deliver engaging content more efficiently and cost effectively
Revolutionizing Marketing with AI-Driven Use Cases: Companies Enhancing Content Creation through AI-Based Tools
Content Creation In October 2023, Canva introduced Magic Write, a part of its Magic Studio suite,
• Companies are increasingly harnessing AI to automate comprising Gen AI technologies including image creation tools like DALL E and
content creation across various formats such as emails, Imagen. Magic Write specifically facilitates the generation of on-brand text for
videos, and images with tools like GPT API for text social media posts and ads, streamlining content creation and reducing time and
generation and DALL E for image creation effort required by users 2
– These tools not only help save time and resources but
also ensures consistency in delivering marketing content In March 2023, Adobe introduced Firefly, an AI-based image-generation tool for
• For example, AI-based tools below facilitate the rapid designers and marketers
• The tool enables users to create custom images and graphics for marketing
production of high-quality content
collateral, social media, and ads, eliminating the need for extensive design skills 3

In March 2023, Coca-Cola developed an AI-powered platform, Create Real Magic, in

– By ensuring a consistent flow of engaging content, these partnership with OpenAI and Bain. This platform facilitates personalized interactions
tools allow marketers to save time and focus more on between fans and the brand by enabling users to generate their own AI-driven
strategic initiatives creative content 4
• According to research, 85.1% of AI users leverage the
technology for article writing and content creation 1 In November 2022, OpenAI introduced ChatGPT, a powerful AI chatbot that
• By leveraging AI algorithms, marketers can tailor content to revolutionized content creation by automating the creation of emails, articles, and
individual consumer preferences and behaviors, thereby code, along with other intriguing functionalities 5
enhancing customer engagement and experience • Businesses have been using this AI-based tool to automate the creation of
• To optimize the outcome of marketing content, companies content, chat responses, and business productivity
must strike a balance between automation and human input
in content creation
According to a ResumeBuilder.com survey of 1,000 US business leaders, 66% of leaders use ChatGPT for
– Marketers must augment AI-generated content with
writing code, 58% for copywriting/content creation, 57% for customer support, and 52% for creating summaries of
human creativity and expertise to ensure compliance
meetings or documents 6
with legal and ethical standards

1 Authority Hacker 4 Marketing Dive

2 Canva 5 OpenAI
3 TheVerge 6 Resume Builder 28
Increasing Adoption of Hybrid Models for Events & Webinars
Post-pandemic, the event marketing industry has experienced a resurgence of in-person gatherings alongside
growing demand for a hybrid model in order to cater to a more geographically diverse landscape
Navigating the Evolving Landscape of Marketing Events
• Pandemic-driven changes have resulted in long-term shifts in the events and webinars market As hybrid work continues to expand and consumers live in diverse locations,
• Recently, there has been a resurgence of in-person events as pent-up demand has led to a strong event management software is needed to address increasingly complex
desire for in-person gatherings events with more attendees, multiple locations, and different time zones
• Alongside a growing preference for in-person events, there remains a strong demand for tools that
facilitate virtual events, helping to increase attendance and provide measurement and analytics
$14.1B
• Considering that virtual events are a cost-effective and accessible means for corporations to
Global Event $7.0B
connect with their audience, organizations are increasingly seeking effective tools to help mitigate
Management
the complexity of modern virtual events
Software Market 2
– This is crucial in maximizing the success of virtual events and generating promising leads for
businesses 2021 2026
– By blending virtual and physical elements, companies can create immersive experiences that
 More attendees  Difficulty coordinating  Different time zones
drive meaningful connections with their audience
 Multiple locations  Complex events  Conflicting schedules
• Platforms such as Google Analytics offer specific features such as engagement reports and
events reports which provide insights into attendance, engagement rates and session popularity
Driven by the increasing importance of events and demonstrating tangible ROI,
– These insights and analytics help event organizers gauge what works and what doesn’t,
marketers expect event budgets to increase in the coming years. The corporate
enabling them to enhance future events and increase efficiency
event market makes up a notable portion of revenue with Cvent estimating 1-3%
of an enterprise’s total revenue is spent on meetings and events 3
Platforms that Facilitate Virtual Events, Networking, and Attendee
Engagement Measurement • AI technologies like ChatGPT are transforming event planning by offering
automated assistance for RSVP management, scheduling, and real-time
attendee interaction
• The events industry is moving towards hybrid models, emphasizing
technology that enhances human-like interactions in virtual settings,
| reflecting the changing landscape of post-pandemic events

1 LinkedIn
2 Markets And Markets
3 Cvent 29
Rise of Interactive and Immersive Content
Amidst the evolving landscape of digital marketing, interactive content formats are emerging as powerful tools for
boosting audience engagement and gathering valuable consumer insights
Transformation of Digital Engagement with Interactive and Immersive Content Industry Use Cases
• Visual content, particularly on social media platforms, excels in capturing attention due to its inherent appeal
A study conducted by Ion Interactive in 2023
• Interactive content formats such as quizzes, polls, and interactive videos are gaining popularity as they revealed that incorporating interactive elements
enhance audience engagement and allow marketers to gather valuable insights into consumer preferences
within digital marketing content and strategies can
‒ These types of content not only pique audience interest but also serve as low-cost and efficient methods increase participation rates by up to 70% 3
to promote events and collect information about attendees
• Industry research indicates that interactive content yields 2x the conversions of passive content and it is • Cosmetic giant Sephora uses interactive quizzes on
shared twice as much as traditional content 3
its website to personalize product recommendations
‒ This heightened engagement can result in increased brand visibility and ultimately drive more sales for its customers

• Similarly, BuzzFeed's quizzes have become a

A report by Demand Gen revealed that interactive quizzes can boost cultural phenomenon, driving significant traffic to
50% conversion rates by as much as 50% 1 their site and fostering deep user engagement

• Brightwave incorporated interactive elements like

In 2022, 47% of marketers considered interactive videos one of the top animations, quizzes, and polls into their email
47% three video types for maximizing engagement as it encourages active marketing campaigns to engage customers and
participation 2 provide them with interactive content experiences

• In the domain of event marketing, AR/VR technologies are gaining traction, enriching both physical and
As technology continues to evolve, the future of
virtual events in distinct ways
content is poised to become even more engaging
‒ For physical events, AR/VR technologies introduce immersive experiences, enhancing engagement with advancements in AR/VR, AI/ML, and
through unique and interactive moments
interactive storytelling offering creators and
‒ Conversely, virtual events, conducted entirely online, leverage AR/VR to provide global access to marketers new ways to connect with audiences
immersive content and interactive experiences, which can match or even surpass the engagement levels through personalized and immersive experiences
seen in traditional, in-person events

1 Paracore
2 Outgrow
3 LinkedIn 30
4 Adact
Repurposing of Sales & Marketing Content
Content repurposing is a cornerstone of efficient marketing as it streamlines resource use and enhances campaign
success across platforms and formats
Maximization of Marketing Efficiency Through Content Repurposing Industry Use Cases

• Repurposing involves adapting content for different formats and platforms, allowing marketers to • Adidas effectively leverages content repurposing
maximize the value of their existing content strategies to enhance the impact of its marketing
‒ Content repurposing leads to more efficient use of resources as it reduces the need for creating efforts 3
new content from scratch for every campaign or platform • For instance, the brand repurposes content into
‒
According to a poll conducted by Referral Rock in 2022, 46% of marketers believe that recycling downloadable PDFs that showcase collections and
existing content is more effective than producing entirely new content in achieving their marketing promotions. It distributes these as part of its email
goals 1 marketing campaigns
94% of marketers repurpose
Most Cost-Effective Content Creation Methods 1 content for different channels and
Updating existing mediums 1
• HubSpot has transformed a blog
content without post in web form into an
changing medium or
channel (33%) engaging eBook with the help of
6% of those who did not repurpose collaboration with Gravity Forms
Repurposing
existing content for content in 2022 were considering • This transformation has
different mediums Creating new doing so in future 1 enhanced content depth,
or channels (65%) content (2%) engagement, traffic, and
diversified offerings 4

• Moreover, repurposing content is not just a matter of cost savings, but also an effective tactic for
achieving marketing effectiveness • Semrush repurposed a blog post from 2022 into an
‒ This is further supported by findings from Semrush’s State of Content Marketing Report which found Instagram carousel in 2023. Converting it into an
that 42% of marketers stated that repurposed content has played a crucial role in the success of infographic helped the platform’s Instagram audience
their marketing campaigns 2 better understand the content while driving traffic to its
• These findings underscore the significance of content repurposing in optimizing content marketing website 4
efficiency, eliminating the need to start each project from scratch and maximizing resource utilization
1 Referral Rock
2 LinkedIn 4 Inioluwa Ademuwagun
3 Brand Credential 31
Emergence of Video Marketing
Video marketing boosts brand reach, sales growth, and customer loyalty with its unmatched engagement and ROI,
thereby dominating the advertising space in recent times
Short-Form Video as a Key Driver of Marketing Success

As per HubSpot’s 2023 Video Marketing Playbook, 83% of marketers suggest

videos should span less than 60 seconds, indicating the rising
popularity of short-form videos to captivate consumers 4

Video Ads are Shared 12x More Video Marketing Elevates

than Image-Based Ads 1 Customer Engagement
− 88% of marketers believe that video content − According to Buzzsumo, videos on Facebook
significantly improves their ROI 1 generate 12x as many shares as text and
images combined 3
− As per a 2023 Wyzowl study, 88% of Most Gen-Z (57%) and a significant portion of Millennials (42%) prefer
marketers recognize video as a cornerstone − In 2023, US adults spent an average of ~45 short-form videos over other formats to learn about products and their features 4
of their marketing strategy 2 monthly hours on TikTok 6

% of Businesses That See Video as an Important Part of Their

User Generated Content Drives Marketing Strategy 7
Marketing Success Advantages of Video Advertising
and CPV-Based Models +18%
− TikTok's success relies on UGC, signifying
the importance of authentic content in an − Video ads have a lower CPV and retarget of 78% 96%
age dominated by generic corporate ads viewers based on their interactions

− In 2023, Glossier's UGC Instagram hashtag − Google's AdWords implemented CPV-based

campaign effectively engaged its audience video advertising; advertisers are only
with customer-submitted content, building charged if viewers watch their ad for a
brand credibility and personal connections 7 minimum duration
2015 2023

1 Personify 6 Tagembed
2 Wyzowl 7 Buzzhubsocial
3 LinkedIn
4 HubSpot 32
5 Colormatics.com
Section 5

eCommerce &
Customer Experience
Subsector

33
eCommerce & Customer Experience Industry Insights
Strong growth in the eCommerce and customer experience market is fueled by the rise in online shopping and an
increased focus on customer experience as a way to differentiate in a highly competitive market

Global eCommerce Platforms Market Size and Growth ($B) 1 Global Customer Experience Management Market Size and Growth ($B) 2

$9.9B
$6.2B
$5.5B
$43.4
$36.8
$26.5 $31.2
$19.0 $22.4

2022 2023 2027 2024 2025 2026 2027 2028 2029

• The Global eCommerce Platforms Market, valued at $6.2B in 2022, is • The Global Customer Experience Management Market is expected to reach $19.0B in 2024 and
projected to grow at a 12.7% CAGR reaching $9.9B by 2027 is projected to grow to $43.4B by 2029 at a CAGR of 17.9%
‒ This growth is driven by the rapid expansion of online shopping, – The increasing emphasis on personalized and seamless interactions across multiple
increasing adoption of mobile commerce, strong demand for touchpoints, fueled by advancements in technology and rising consumer expectations, is
omnichannel solutions and a focus on customer experience helping to drive growth
• Key players like WooCommerce, Shopify, Magento, OpenCart, and • In today’s digital age, increased competition has led to a plethora of optionality as consumers now
BigCommerce focus on enhancing customer experience, integrating new have more options than ever for products and services
technologies and expanding their global reach
– As competition continues to increase, brands and stores look to customer experience as a
‒ These players invest in data analytics, cybersecurity, and supply chain way to differentiate and win customers. This has led to increased investment in customer
optimization to meet the evolving needs of online shoppers and ensure experience management solutions as businesses continue to improve the customer
efficient operations experience in hopes of winning new customers and creating loyal existing customers
 For example, Shopify invested in enhancing its data analytics, • Businesses are recognizing that delivering exceptional customer experiences isn't just a
cybersecurity, and supply chain capabilities for efficient operations – competitive advantage, it has become a fundamental requirement for long-term success
catering to evolving shopper demands, and empowering businesses
to thrive in an increasingly digital environment
1 Verified Market Research
2 Mordor Intelligence
34
Hyper-Personalization in Sales & Marketing
The use of AI and real-time data for hyper-personalization is transforming sales & marketing, helping to enhance the
customer experience and ultimately drive more sales
Leading Examples of Hyper-Personalization for
Emergence of Hyper-Personalization Brands & Retailers
• Hyper-personalization is revolutionizing sales & marketing by tailoring shopping experiences to individual • Starbucks leverages AI for hyper-personalization in its
preferences, behaviors, and demographics, driving increased engagement and conversion rates eCommerce platform, analyzing real-time data to tailor
offers based on user preferences and past purchases
• This tactic transcends traditional personalization through the use of advanced technologies such as AI and
recommendation engines to analyze extensive data sets ‒ With over 400,000 hyper-personalized message
variations, Starbucks ensures uniquely customized
• As a result, hyper-personalization tailors experiences to consumer preferences more accurately, thereby
interactions with its loyal customers 4
enhancing customer satisfaction, fostering loyalty, and boosting overall marketing effectiveness
– In 2023, Evergage, a Salesforce subsidiary, revealed that 88% of companies have observed significant
improvements in business results due to hyper-personalization 1 • Amazon stands out as a leader in hyper-personalized
Use of Hyper-Personalization by Brands 2 marketing, employing a sophisticated algorithm
backed by predictive analytics and using item-
Predictive Personalization based collaborative filtering. This recommendation
Limit of hyper-personalization by
most businesses engine contributes to 35% of Amazon's total revenue 4
Omnichannel
Revenue

Optimized – For instance, if a customer buys a dog chew and

Single Field Segmentation Behavioral
has a history of watching Pixar films, Amazon
Message Insertion Rules Based Recommendations
might suggest Toy Story-themed dog toys
Mailing

Personalization Maturity

• Prominent brands like Amazon, Spotify, and Starbucks have incorporated predictive personalization into their eCommerce platforms, utilizing AI/ML to
analyze a diverse range of factors that power their recommendation engines. These factors supply valuable data and insights, enabling the customization of
recommendations for individual users
• In contrast, most businesses focusing on personalization typically limit themselves to segmentation without delving into more advanced approaches

1 LinkedIn
2 Instapage
3 Kensium 35
4 Wedia
Balancing Data Privacy and Personalization
As marketers leverage customer data for personalized strategies, they also face challenges in balancing privacy
with the need for creating a personalized experience
Navigating Personalization, Privacy, and Data Sharing in Marketing Strategic Moves to Balance Data Privacy and Personalization

• Effective personalization hinges on marketers understanding their audience through

• Using a broad mix of marketing channels helps companies collect
customer data while creating strategies that enhance customer experience and earn trust diverse first-party data for data privacy
– As per a 2023 Gartner study, managing 11 or more channels has led
of respondents view privacy rules as obstacles to scaling personalized marketing
67% strategies, according to a 2023 survey by LXA 1
nearly 50% of marketers to enhance their first-party data acquisition 4

• Implementing data control and privacy policies enhances loyalty and

• An organization’s marketing and data privacy policies should be aligned so that marketing enables personalized marketing that adheres to customers’ specific
is carried out in tandem with secure data practices and compliance with privacy regulations privacy preferences
• As per research from Cisco, over 75% of companies investing in strong
– 67% of the respondents from LXA’s 2023 survey strongly agree that their organizations’ data privacy protections witness higher customer loyalty and trust 5
marketing activities and data privacy policies are completely aligned 1
• Adoption of a privacy by design approach, which includes integration
of US consumers desire personalized marketing and want to share data for of privacy into initial planning, data minimization, pseudonymization, and
71% targeted messages, highlighting the need for need for effective data privacy in use of non-personal data for targeted campaigns, ensures
order to create transparency and build trust in marketing strategies 2 personalization along with data protection

• A 2023 Gartner survey revealed that 60% of marketing leaders expect the complexity of • Companies like Netflix and Spotify align their marketing strategies
balancing customer value and privacy in collecting first-party data to increase in 2023 3 with data privacy by leveraging recommendation algorithms to
provide personalized suggestions to users 7
• Despite 85% of respondents indicating that their organizations have implemented formal • These algorithms analyze user preferences and behaviors based
policies to oversee the collection, storage, processing, and sharing of customer data for on the data voluntarily shared with the platforms
effective data management, the challenge of ensuring privacy remains prevalent 3 • By focusing on providing value to users through personalized
recommendations, these companies can encourage users to
– The survey also highlighted a shift toward enhanced personalization, with 42% of share more data willingly
marketers aiming for one-to-one personalized communications, emphasizing the need • By respecting user privacy while offering enhanced personalized
for strategies that balance data collection and privacy 3 experiences, these companies build trust and strengthen their
core value propositions
1 The State of Data Privacy and Trust 2023 report by LXA 5 Cisco
2 McKinsey 6 BCG Research
3 Gartner Survey 7 GSPANN for Data Privacy 36
4 Gartner
Emergence of Social Commerce
Social commerce, which includes the integration of shopping and social media, has transformed customer
experience, allowing users to discover and purchase products directly within their social media feeds

Impact of Social Commerce on Customer Experience Social Commerce Sales in the US ($B) 3
• With the seamless integration of shopping and social media, social commerce is reshaping the
$126.5 $149.6
eCommerce customer experience by offering a frictionless journey from product discovery to $107.1
$76.6 $90.6
final checkout $64.8
‒ A surge in social media usage along with substantial investments in social media advertising
has resulted in a significant uptick in global social commerce sales
• Social commerce is transforming every interaction within platforms such as TikTok, Facebook, and 2023 2024 2025 2026 2027 2028
Instagram into revenue-generating opportunities, streamlining the shopping process and providing
Transformation of Social Commerce Through AI
a more convenient and engaging experience for customers
– Instagram’s live streaming is interactive and allows customers to shop during the streams, • The AI eCommerce market poised to reach $16.8B by 2030, growing at a
boasting up to 40,000 comments in a single session 2 15.7% CAGR over the next six years 4
– Similarly, on an average, a live shopping event on TikTok boosts sales and enhances – AI has reshaped social commerce with features such as voice search,
customer experience with instant interaction, product demos, and Q&A sessions 2 personalized recommendations, and enhanced content creation through
AI-powered content reaction tools

Total social media users around the world reached approximately 5B as of January 2024, – In 2023, AI advancements led to a 30% increase in monetization
roughly equivalent to 62.3% of the world's population. This highlights the significant impact of efficiency on Instagram and a 40% increase on Facebook 5
social commerce in the sales and marketing sector 6 • By leveraging AI for content creation, brands are continuously engaging
social media users with hyper-targeted content

3.5B users 2.0B users 482M users • AI tools enhance the monetization efficiency of Instagram Reels by
providing targeted advertising opportunities based on user behavior,
preferences, and engagement patterns

– AI-driven advertising can increase click-through rates by up to 50%

2.5B reach 2.0B users 1.6B users and reduce customer acquisition costs by 30% 7

1 Businesswire
5 Marketing Dive
2 McKinsey & Company
3 Statista
6 Datareportal
7 eMarketer, 2023
37
4 Simplicity DX
AI-Powered Customer Support
AI-powered chatbots improve customer experience and reduce costs by mitigating labor expenses linked to staffing,
training, supervising support teams and overhead costs for maintaining physical support centers

The Rise of AI Chatbots and Conversational AI in Customer Support AI Chatbots for Customer Support
• The rise of online shopping and omnichannel retail has increased the popularity of AI • In May 2023, Aisera collaborated with Microsoft to introduce an AI
chatbots by necessitating efficient customer support across various digital platforms copilot for enterprise services, integrating ChatGPT and Azure
OpenAI Service capabilities into its AI Service Experience Platform.
‒ AI chatbots offer scalable 24/7 assistance which significantly improves customer This move aims to improve customer service through advanced AI
engagement and satisfaction in an evolving eCommerce landscape chatbot functions having produced impressive results so far
• The use of generative AI boosts conversational tools by enabling text-based chatbots
Reduction in
and voice bots to generate more nuanced and contextually relevant responses, making Auto-Resolution
them more effective in handling complex interactions
75% Rate 2
80% customer
operations costs 2
• AI chatbots have evolved into indispensable assets for customer support, playing a
pivotal role in elevating the customer experience while driving cost reductions • Zowie, an AI-powered customer service platform, offers a shopping
assistant and a chatbot that can personalize interactions using
‒ According to Indeed, chatbots cost on average between $500-$5,000 per month customer data, helping to increase conversions and order value 3
compared to ~$3,900 per month for the average salary of one customer service
representative in the US 1, 2 • Tidio offers Lyro, a conversational AI tool that engages with
customers and answers their questions solely based on support
‒ Given that chatbots can handle an unlimited number of support requests while content
still costing less than two human agents, they allow organizations to streamline
support-related expenses and maximize operational efficiency – Tidio solves up to 70% of customer problems in seven languages
on any live channel, while its AI Agent answers customers in six
‒ These tools empower eCommerce enterprises to not only meet the evolving needs seconds using only stored data 4
of consumers, but also craft personalized journeys and provide prompt responses
of visitors do not
Decrease in
Given the recent advancements in Gen AI, many companies are leveraging open-
source models and APIs to quickly integrate into their existing platforms. However,
59% waiting time 4
76% request transfer to
investors and strategic buyers place more value on proprietary language models which
a human agent 4
have been trained on custom data sets

1 Aisera
2 Faye Digital
3 Zowie 38
4 Tidio
Transforming Customer Communication (1/2)
In the modern digital era, businesses place a strong focus on optimizing every customer interaction through the use
of powerful customer communication tools

Customer Engagement Through Contact Center as a Service (CCaaS)

• Amidst the digital era, tools that improve and enable customer communication are
pivotal for facilitating real-time interactions between businesses and customers
$149.6B
• Serving as a cornerstone for marketing, support, and sales teams, these tools
facilitate dynamic dialogues across various channels, fostering connections that
drive company success $33.4B
Global Contact Center
• In the current sales and marketing environment, businesses are rapidly increasing Software Market ($B) 4
their investments in customer service and support

– This intensified focus on customer service initiatives is yielding concrete

positive results, including heightened customer satisfaction, enhanced brand
loyalty, increased conversion rates, and improved business performance 2023 2030

of consumers have noticed improvements in The modern consumer expects efficient resolutions of their questions and concerns, making it
their support experiences, a trend reflecting
57% the strides made in customer communication
imperative for businesses to optimize customer support procedures and remove any hindrances
that could disrupt a seamless customer experience
by businesses, per a recent from Zendesk 1

• In the continually evolving landscape of customer service, the ubiquity of

smartphones has intensified consumer expectations, prompting significant As a result, 60% of leaders in customer experience are prioritizing
transformations in contact centers investments in digital tools such as CCaaS software that enable
businesses to engage with customers quickly and easily 3
– Legacy systems are being replaced by CCaaS alternatives to meet demands
for efficiency and effectiveness in providing outstanding and seamless support

1 Zendesk
2 Lumoa
3 Whatfix 39
4 Grand View Research
Transforming Customer Communication (2/2)
Customer communication tools are being modernized by incorporating cloud technology, Gen AI, and other
advancements in order to improve customer experience

Revolutionizing Customer Communication with CCaaS Solutions

• CCaaS empowers businesses with cloud-based solutions, providing enhanced scalability, flexibility, and
improved satisfaction through efficient management of customer interactions across multiple channels
Notable Providers of CCaaS Solutions

– Another benefit is the ability to streamline operations and reduce costs for businesses by eliminating
the need for on-premises hardware and maintenance

What Does CCaaS Offer?

Interactive Voice
Call Routing
Response (IVR)

Omnichannel
Call Handling
Support

• CCaaS is empowering businesses to comprehensively address customer questions, ensuring prompt

responses and effective solutions that enhance satisfaction

– Real-time customer data is leveraged to optimize agent performance, while business analysis tools
are used to track essential metrics for informed decision-making

• These solutions serve as cost-effective alternative to legacy solutions, as they eliminate the need for
expensive hardware, maintenance costs, software purchases, and in-house IT resources

1 Zendesk
2 Lumoa
3 Whatfix 40
4 Grand View Research
Conversion Rate Optimization (CRO)
Small adjustments to the product detail page (PDP) such as optimizing various elements to enhance user experience
and increase engagement, can lead to incremental improvements which drive significant revenue growth

Conversion Optimization in eCommerce Some CRO Tools Used By eCommerce Platforms

• Using CRO to boost eCommerce sales involves crafting a personalized shopping journey to boost • Granify is a conversion rate optimization platform
conversions and enhance the overall customer experience that leverages AI/ML to analyze shoppers’
behavioral and contextual data to create a highly
‒ According to industry leaders, typical eCommerce conversion rates hover between 2.5% and 3%, personalized and engaging experience
which means even small incremental improvements can lead to significant revenue growth 1
• HotJar, a product experience insights platform,
‒ Online stores are now aiming to achieve a conversion rate of 3% or higher 1 allows eCommerce companies to refine their
conversion rate optimization strategy 4
• eCommerce players can significantly boost conversion rates and sales by providing personalized
‒ By delving into user behavior, collecting
recommendations based on shopper data and browsing history on product detail pages (PDPs)
insightful feedback, and implementing A/B
• With global mobile eCommerce sales exceeding $2T in 2023, optimizing PDPs for mobile web browsers is testing for informed decision-making, Hotjar
essential for unlocking significant sales and revenue growth 3 equips platforms with the tools to optimize
customer journeys effectively, ultimately
‒ PDPs are crucial in the conversion funnel for eCommerce shopping. They provide detailed information maximizing conversion rates
about individual products, including images, descriptions, specifications, pricing, and reviews

‒ Optimizing PDPs ensures they are visually appealing, easy to navigate, and informative, thus reducing Other CRO Tools Used By eCommerce Websites
friction and enhancing the overall shopping experience

• A frictionless customer experience is crucial for improving conversion rates

‒ According to Forrester Research, companies that prioritize a seamless journey see a 1.6x increase
in customer lifetime value and a 1.4x boost in revenue compared to their counterparts 2

‒ A seamless customer journey involves breaking down barriers, making every section of the website
quick to navigate, introducing effective product detail pages, and strategically placing product
recommendations at the checkout stage

1 Big Commerce
2 Five9
3 Shopify 41
4 LinkedIn
Rising Focus on Data Security in Online Shopping
With the increasing adoption of online shopping, eCommerce platforms are focusing on strengthening data privacy
through advanced security measures, such as encryption and multi-factor authentication

Data Privacy and Security eCommerce Security: Threats, Solutions, and Industry Standards
• The growing adoption of online shopping has fueled concerns about data privacy and • During peak sales periods such as Black Friday or Cyber Monday, online businesses
security in the eCommerce space are exposed to security threats including competitor bot attacks, Man-in-the-Middle
(MITM) intrusions, and disruptive Distributed Denial of Service (DDoS) attacks that
– To address these concerns, eCommerce sites are implementing enhanced security
overwhelm the websites with requests
measures such as advanced encryption and multi-factor authentication to protect
customer data and foster trust

o According to Expert Insights, over 90% of small businesses operating online

experience with data breaches, underscoring the critical need for robust
security measures across the digital landscape 1
• To fortify security, eCommerce platforms implement measures such as firewall
protection, HTTPS encryption, anti-malware, and anti-virus software, along with
• Since eCommerce systems store valuable personal data, companies need a robust
routine data backups
defenses against hacking attempts to prevent unauthorized access and theft consumer
of information
‒ These measures help mitigate risks, avoid data breaches, and build strong
consumer trust

• eCommerce platforms must align with industry standards such as Open Web
91% 98% $206B Application Security Project (OWASP), ISO 27001, and Payment Card Industry Data
Security Standard (PCI DSS)

of organizations disclosed of all cyber attacks in estimated global cost of ‒ These standards ensure that platforms establish a secure online environment,
at least one cyber attack retail have financial online payment fraud by safeguarding customer transactions and data, and contributing to an optimal
incident in 2022 2 motives 2 2025 3
shopping experience

1 Login Radius
2 itransition
3 Stripe 42
Section 6

Loyalty & Customer

Engagement Subsector

43
Loyalty & Customer Engagement Industry Insights
The loyalty management and customer engagement industry is experiencing strong growth as consumer attention is
increasingly scarce, digital shopping continues to accelerate, and businesses focus on the post-purchase experience

Global Loyalty Management Market ($B) 1 Global Customer Engagement Market ($B) 2

$14.5B

$6.5B
$5.3B
$32.2
$19.3 $21.4

2022 2023 2027 2022 2023 2027

• The global loyalty management market reached $6.5B in 2023 and is projected to grow • The global customer engagement market reached $21.4B in 2023 and is projected to grow
at a 22.3% CAGR reaching $14.5B by 2027 at a 10.8% CAGR reaching to $32.2B by 2027
• This growth is largely driven by the adoption of emerging technologies including ML/AI- • The customer engagement market is fueled by an increased focus on customer
driven loyalty management solutions. These solutions offer personalized incentives satisfaction as well as consumers increasingly scare attention given the influx of ads
which boost sales and enhance customer engagement
‒ Further, customer engagement strategies aim to retain and expand the customer base,
‒ Retailers are responding by investing significantly in loyalty management programs reduce grievances, and foster enhanced interactions
and forming cross-brand partnerships for improved customer retention
‒ For example, in 2024 Target announced it was upgrading its Circle loyalty program • Today’s attention economy is saturated with corporate ads as consumer attention is
with automatic checkout discounts and free two-day shipping, showcasing a trend increasingly scarce – thereby emphasizing the importance of optimized customer
among retailers as they look to strengthen customer retention strategies engagement strategies in order to cut through the noise and forge meaningful connections
with customers
• Due to rising marketing costs, retaining existing customers and preventing churn is
significantly more cost effective compared to acquiring new customers ‒ According to a recent study, 66% of consumers surveyed want fewer marketing
messages and 27% feel they are bombarded by marketing messages 4
‒ It is estimated that acquiring a new customer can cost 5x – 7x more than retaining an
existing customer 3

1 Fortune Business Insights

2 Polaris Market Research
3 Forbes 44
4 PR Newswire
Social Proof in Marketing
Social proof plays a pivotal role in marketing as it provides authentic validation and credibility, influences
purchasing decisions, and reduces content marketing costs compared to traditional advertisements

Dominance of Social Proof in Marketing Over Traditional Corporate Ads Examples of Brands Leveraging Social Proof
• Social proof, which involves leveraging authentic user-generated content, significantly impacts customer loyalty and
purchase decisions. This includes UGC photos and videos, ratings & reviews, social media posts, and more Amazon leverages social proof by prominently
• Given the increased level of competition and optionality consumers face, many shoppers are turning to ratings & displaying customer reviews, star ratings, and
reviews in order to research products and gain a deeper understanding product images. The review system captivates
customers’ attention and helps to build trust 3
– Social proof not only fosters credibility but also cultivates trust among potential customers, impacting
consumer behavior and the decision-making process
Apple harnesses UGC by inspiring customers to
A recent study revealed that 86% of businesses believe that verified reviews significantly
showcase their creative endeavors with Apple
influence customers’ purchase decisions 1
products. The "Shot on iPhone" campaign, an
Factors Influencing US Adults Decisions to Choose Furthermore, as confidence in conventional advertising advertising initiative that showcases the
a Brand or Product (%) 5 dwindles, the credibility of social proof is ascending photographic capabilities of iPhones based on
user content, not only highlights product
A brand I already know and trust 57% versatility but also strengthens Apple’s
65%
of consumers search for innovative and artistic brand image 3
Recommendations from 12% reviews and testimonials before
friends/family 11% 75% making a purchase 1
Stories about that company or 7%
photos featuring those clothes/shoes 2% Patagonia has demonstrated a committed to
eco-friendly products, showcasing the Fair
Ads I have seen 4%
2% Trade Certified tag on its X (formerly Twitter)
Recommendations of an in—store 1% handle. This product certification not only builds
of customers prefer brand-
salesperson buyer trust but also targets environmentally
43% related content generated by
19% individual users 2 conscious audiences seeking environmentally
None of the above
20% conscious brands 4
August 2023 Total Adults 55+
CivicScience survey

1 Wiser Notify 5 eMarketer, August 2023

2 Gartner
3 Sprinklelr 45
4 Social Champ
The Rise of Influencer Marketing
The surge in influencer marketing is fueled by increasing consumer desire for authentic content and
recommendations from trusted and known sources, propelling brands to leverage influencers to engage audiences

Influencer Marketing Specific Use Cases of Influencer Marketing

• In the rapidly evolving marketing landscape, influencer • A mishandled influencer campaign, where an influencer marketing campaign is executed poorly or fails to
marketing has emerged as a highly effective strategy for achieve its intended goals, could risk tarnishing the image of brands such as Cruise America, a recreational
companies to connect with customers in their desired vehicle dealer which targets the niche market of recreational vehicle rentals 2
demographics and foster brand loyalty – The mishandled influencer campaign of Cruise America involved TikTok influencer Marc Sebastian, a
– Consumers are increasingly seeking genuine and model and influencer with 1.6 million followers, who promoted a book during a 9-month cruise
personalized recommendations from trusted individuals, – Criticisms arose due to the lack of book promotion, exclusion of other authors, focus on the influencer
marking a shift toward authenticity in brand promotion over content, ineffective promotion, and questionable marketing strategy, emphasizing the importance of
aligning influencer strategies with clear objectives to engage the audience effectively and drive desired
US Marketers Leveraging Influencer Marketing 1 outcomes
• It is crucial for such brands to meticulously select influencers whose values align seamlessly with their brand
78.6% 82.7% 86.0%
69.7% 74.5% identity
64.5%

• H&M’s collaboration with influencers such as Gigi Hadid have yielded significant success. For instance,
Hadid’s Instagram video showcasing various H&M outfits garnered nearly 3 million likes 3
– This partnership underscores how brands can effectively amplify their message, increase visibility, and
2020 2021 2022 2023 2024 2025
drive consumer interest and engagement, ultimately leading to enhanced brand awareness
and increased sales
• A misalignment between influencers’ endorsements and their
followers' preferences not only risks damaging influencers’ • Glossier, a leading makeup brand, actively collaborates with micro-influencers to amplify its presence 4
reputation but also exposes the brand partners to scrutiny – The brand markets itself through content created by real customers to create a strong brand community.
People garner the attention of Glossier by tagging the brand in their Instagram posts and sharing their
– This underscores the need for careful collaboration,
experiences with the brand’s products
ensuring that influencer partnerships align seamlessly
– This shows how Glossier’s marketing strategy is centered around building a strong community and
with the values and interests of both the audience and
fostering authentic engagement with its customers
the brand

1 eMarketer
2 Cruiseamerica
3 Favikon 46
4 Teachable
Use of UGC for Brand Loyalty and Promotion
The focus on UGC is driven by consumers' trust in authentic content generated by their peers as opposed to generic
corporate ads – thereby fostering heightened brand loyalty and enhanced customer engagement

Increased Brand Loyalty through UGC

• In an era of media saturation, authenticity has become the distinguishing factor for brands UGC Tools
rather than the sheer size of their marketing budgets
• Tools such as TINT and Taggbox are specialized platforms designed to
– Consumers often distrust polished advertisements and seek genuine, unfiltered views
streamline the creation, curation, and management of UGC
shared by their peers instead
• By collecting content from diverse social media channels, they provide a
• UGC acts as a bridge between brands and their consumers by showcasing real-life
centralized hub for UGC
experiences, including photos, reviews, videos, and comments, online

– It highlights the authentic usage of products and services, thereby fostering brand loyalty
through social media platforms

UGC Use Cases for Brand Promotion

• Through written UGC, including blogs and other content, customers are able to express their experiences with a brand's products and services in depth, allowing for
nuanced insights and authentic testimonials to be shared

– Tommy Hilfiger’s website has a dedicated section for showcasing blogs where customers endorse the brand’s fashion offerings 1

• UGC creation through live sessions on platforms such as Instagram, Facebook, and YouTube provides a powerful tactic for enabling real-time engagement and
participation from audiences

– Origins, a renowned cosmetic brand, effectively utilizes Instagram's live session feature for promotional purposes

• Sephora, a major player in the beauty industry, has embraced UGC through its Beauty Insider Community, an online digital community 2

– The company encourages its community to share photos and experiences, as well as provide tutorials, conduct Q&A sessions, and showcase personal stories
for authentic feedback

1 Social Champ
2 Bazaarvoice
47
Post-Purchase Strategies for Lasting Brand Impact
In an era where customer experiences shape brand loyalty, companies are increasingly formulating post-purchase
strategies aimed at fostering brand advocacy and customer retention

Leveraging Post-Purchase Strategies for Enhanced Branding Instances of Post-Purchase Strategies

• To strengthen brand advocacy and loyalty, companies are increasingly leveraging post- • Casper, a popular mattress brand, sends a confirmation email featuring a
purchase strategies that harness the positive experiences of satisfied customers who countdown for a good night's sleep after a mattress purchase 1
share their recommendations with friends and family through word-of-mouth, referrals,
social media sharing, and user-generated content – By framing the email in a way that highlights the functionality of its products
and emphasizes the importance of a good night's sleep, Casper reinforces
– Strategies often involve incentives, rewards, or personalized communication to the value proposition of its brand
further motivate customers to advocate for the brand
– This not only enhances the overall customer experience but also fosters a
sense of satisfaction and trust in the brand

• Adidas, a globally acclaimed sportswear brand, offers exclusive rewards to its

loyal customers to cultivate a deeper connections and increase engagement 2

• Kate Spade, a luxury fashion brand, conducts insightful customer satisfaction

• The post-purchase experience is crucial to creating lasting positive impressions and
surveys post-purchase 3
encouraging repeat purchases

– By engaging customers through loyalty programs, email campaigns, referral – The brand provides discounts and exclusive offers for future purchases to
incentives, companies can turn more people into brand advocates survey participants, turning customer feedback into a mutually beneficial
interaction
• Post-purchase strategies include efforts such as:
– By soliciting feedback through customer satisfaction surveys and offering
– Expressing gratitude through personalized thank you emails following a purchase discounts and exclusive offers for future purchases, Kate Spade
to strengthen customer relationships and encourage repeat purchases demonstrates that it values its customers' opinions and is committed to
– Engaging in post-purchase marketing activities to upsell and cross-sell improving their experience
complementary products or services
– This fosters a sense of appreciation and loyalty among customers,
– Introducing loyalty programs that reward customers for their purchases through encouraging them to continue engaging with the brand and potentially
points, discounts, or exclusive benefits, which incentivizes repeat purchasing advocating for it among friends and family

1 Casper
2 thinkwithgoogle
3 Eshopbox 48
Section 7

M&A and Capital

Raise Transactions
Select Sales & Marketing Tech M&A Transactions
Acquisition multiples reflect scale, business models, growth and scarcity value – premium multiples are typically paid for
large platforms with recurring revenue, strong growth and unique technology

Dec 2023 Dec 2023 Oct 2023 Oct 2023 Sep 2023 Jun 2023 May 2023

Selected
Market Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by Acquired by
Activity

Transaction
Size $400M $150M $382M $835M $430M $12.5B $1.5B

Revenue
Multiple
13.3x 3.0x 2.6x 3.0x 1.6x 8.6x 3.1x

Provides AI-based Provides AI-based Provider of AI- Provides AI- Developer of an Developer of a Provides survey
sales commission marketing based contact powered digital AI-powered software for review software products
management intelligence SaaS center SaaS and commerce platform for better & feedback and purpose-built
software, related and APIs for related APIs with management SaaS optimizing brand analytics as well as solutions that
APIs, and mobile businesses. features for with features for marketing and brand tracking & enable
application with Software provides workforce market campaign tracking management to organizations to
Target features for sales features for lead engagement intelligence, through a suite of improve overall engage with their
Description
compensation, scoring and routing, management, reporting, content omnichannel customer key constituents
workflow customer analysis, virtual assistants optimization, solutions experience
management, conversion targeting and customer analytics, catalog
currency conversion, and advertisement analytics maintenance and
reporting, and targeting brand protection
analytics

Source: Pitchbook Data, 451 Research 50

Select Sales & Marketing Tech Capital Raises
Top venture capital and growth equity firms have backed Sales & Marketing platforms with established product-market fit, a
visionary and execution-focused leadership team and strong growth prospects

Dec 2023 Sep 2023 Sep 2023 Aug 2023 Jun 2023 Jun 2023 Jun 2023

Selected
Market
Activity

Amount
$65M $54M $100M $100M $191M $162M $90M
Raised

Investors

Provides social and Developer of a Developer of a Operator of a Developer of Provider of a AI video creation
media intelligence. By customer data generative artificial scalable revenue creative tools platform for platform for
examining millions of platform designed to intelligence platform engine and intended to bring marketing enterprises,
posts each day from empower marketers designed for account-based the benefits of AI to automation, email enabling simple and
social media to build complex business writing sales platform creative projects marketing and intuitive video
Target platforms, blogs and customer segments needs, enabling intended to allowing artists, various integrations production without
Description news sites, Meltwater and enabling brands users with content accelerate business designers, and to boost sales the need for
helps companies to develop that is consistent growth through filmmakers to use across various cameras or studios
make better, more personalization and on-brand customer data and an intuitive and platforms
informed decisions capabilities without engagement simple visual
based on insight from widespread data interface
the outside infrastructure

Source: Pitchbook Data, 451 Research 51

 Most Active Strategic Buyers
Strategic M&A: Acquisitions from 2020 – Q4 2023
Company # of New S&M
New S&M Investments
Name Investments

Ranked by number of new investments

Source: Pitchbook Data, 451 Research 52

 Most Active Private Equity Investors
PE: New Investments from 2020 – Q4 2023
Company # of New S&M
New S&M Investments
Name Investments

10

10

Ranked by number of new investments

Source: Pitchbook Data, 451 Research

Includes control and growth equity investments above $1M 53
 Sales & Marketing Tech M&A Overview
Sales & Marketing Tech M&A Activity Overview Median Multiple by Year M&A Transactions by Subsector as of 2023
• Sales & Marketing M&A transaction volume increased in Q4 2023, *EV / Rev
as activity points towards a potential rebound. However, transaction
volume and M&A multiples remain subdued compared to 2021 levels 6.3x eCommerce & Customer
5.8x 16% Experience
as economic uncertainty impacts activity and valuations
5.3x 17%
– Growth in M&A transactions was driven by prime market 5.0x
Omnichannel Marketing
conditions, an increase in the number of mature sales & 4.1x & Analytics
marketing companies and greater need for marketing tools
– While M&A multiples decreased in 2023, companies with strong 27% Loyalty & Customer
40% Engagement
products and outstanding metrics still yield outsized valuations
• Notable recent transactions include: Content Marketing &
– Salesforce’s $400M acquisition of Spiff in December 2023 Events

– HubSpot's $150M acquisition of Clearbit in December 2023

2019 2020 2021 2022 2023

Sales & Marketing Tech M&A Transactions
150

112 109 108 109

106
97
100 89 85
76 75 76 80
73
67 66
56 51
47 46 42
50

0
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
eCommerce & Customer Experience Omnichannel Marketing & Analytics Loyalty & Customer Engagement Content Marketing & Events

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia 54
 Sales & Marketing Tech Capital Raise Overview
Sales & Marketing Tech Fundraising Overview Median Multiple by Year Capital Raises by Subsector as of 2023
• Continuing the upward trend from last quarter, Sales & Marketing *EV / Rev
capital raise transaction volume increased again in Q4 2023
• Platforms that provide eCommerce & customer experience and eCommerce & Customer Experience
11.4x
loyalty & customer engagement are the top subsectors of interest for 21%
investors by transaction volume 24%
• Capital raise multiples have decreased substantially in 2023 but are Omnichannel Marketing & Analytics
7.7x 7.9x
expected to rebound as economic conditions improve in 2024 7.1x
6.0x
• Notable recent financings include: Loyalty & Customer Engagement
32% 23%
– TheyDo’s $34M growth raise in March 2024
– Meltwater’s $65M growth raise in December 2023
Content Marketing & Events
– Stensul’s $35M Series C raise in November 2023

2019 2020 2021 2022 2023

Sales & Marketing Tech Capital Raise Transactions
120 108
92 90 92
85 84 86
90 80
70 73
64
54
60

30

0
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
eCommerce & Customer Experience Omnichannel Marketing & Analytics Loyalty & Customer Engagement Content Marketing & Events

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia
Capital Raise Transactions below $1M are not included 55
M&A Transactions by Deal Size
2022 2023

$500M+ 6 9% $500M+ 7 18%

100-500 15 21% 100-500 7 18%

25-100 21 30% 25-100 10 26%

10-25 9 13% 10-25 5 13%

5-10 4 6% 5-10 4 10%

0-5 15 21% 0-5 6 15%

Mean / Median Mean / Median

$390M / $52M $485M / $45M
Transaction Size Transaction Size

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia 56
Capital Raise Transactions by Deal Size
2022 2023

$500M+ 0 0% $500M+ 0 0%

100-500 21 5% 100-500 2 1%

25-100 69 13% 25-100 24 9%

10-25 70 16% 10-25 37 15%

5-10 74 14% 5-10 57 20%

1-5 266 51% 1-5 149 55%

Mean / Median Mean / Median

$20M / $5M $11M / $5M
Transaction Size Transaction Size

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia
Capital Raise Transactions below $1M are not included 57
 Loyalty & Customer Engagement Deal Volume
M&A Capital Raise Volume
• M&A volume in the Loyalty & Customer Engagement sector remained relatively stable in • Loyalty & Customer Engagement capital raise volume declined in Q4 2023 after hitting a
Q4 2023, furthering the reversal of the upward trends seen in previous quarters peak the quarter before. However, the sector is still experiencing strong interest from
• Notable recent transactions include First Insight’s acquisition of SnapRetail in January investors as key industry tailwinds drive growth
2024 – In 2023, most of the transaction volume was in the Community & Reviews subsector
– SnapRetail provides online marketing software with features for email marketing, social • Notable recent raises include TheyDo’s $34M growth raise in March 2024
media marketing, consumer engagement, SEO management, calendar scheduling, – TheyDo provides a customer journey mapping platform designed to improve
marketing automation, and e-commerce management collaboration around customer experience and reduce time to market
• Notable recent transactions include IZEA’s acquisition of Zuberance in December 2023 • Notable recent raises include Meltwater’s $65M growth raise in December 2023
– Zuberance provides advocate marketing SaaS with features for influencer marketing, – Meltwater develops social and media intelligence software that examines millions of
content sharing, search engine optimization, and customer engagement posts each day from social media platforms, blogs and news sites, helping companies
make better and more informed decisions

Top Subsectors by Transaction Count (2019 - 2023) Top Subsectors by Transaction Count (2021 - 2023)
34
32
26
25 23
24 21 20 21 21
21 21
18 18 17 16
17 17 16 17
13 13 12
11 12
9 10 9
8 7
5 5

Advocacy Loyalty & Referrals Affiliate Marketing & Management Channel Partners and Local Marketing
Advocacy Loyalty & Referrals Affiliate Marketing & Management Channel Partners and Local Marketing
Community & Reviews Influencers Social Media Marketing
Community & Reviews Influencers Social Media Marketing
Social Media Monitoring
Social Media Monitoring

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia
Capital Raise Transactions below $1M are not included 58
 Omnichannel Marketing & Analytics Deal Volume
M&A Capital Raise Volume
• M&A transaction volume in the Omnichannel Marketing & Analytics sector increased again in • Omnichannel Marketing & Analytics capital raise volume increased in Q4 2023, reaching its
Q4 2023, reaching the highest activity level in the sector since Q1 2019 highest level since Q1 2022
• In Q4 2023, the majority of transaction volume was in the Campaign/Lead Management and • In line with M&A trends, the Marketing Automation and Campaign/Lead Management
Marketing Automation subsectors subsectors have received the majority of interest from investors
• Notable recent transactions include Salesloft’s acquisition of Drift.com in February 2024 • Notable recent raises include Stensul’s $35M Series C raise in November 2023
– Drift.com provides AI-powered buyer engagement software, related APIs, and mobile – Stensul is a developer of an email creation platform intended to simplify communication by
application with features for conversational marketing, lead generation, campaign handling complex coding and design tasks that empower marketing teams to create mobile-
management, customer support automation, reporting, and analytics responsive, brand-compliant emails across all streams
• Notable recent transactions include Perion Network’s $100M acquisition of Hivestack in • Notable recent raises Adentro’s $13M Series C raise in November 2023
December 2023 – Adentro is a developer of a marketing platform designed to help businesses create stronger
– Developer of a location ad-serving platform designed to target custom audiences based on connections with in-store customers through tools that collect data on customer behavior,
physical-world behaviors enabling them to create targeted marketing campaigns that drive an increase in sales

Top Subsectors by Transaction Count (2019-2023) Top Subsectors by Transaction Count (2021-2023)
45 46 49 28 28
44 42
37 21 20
30 31 18 18 18 17
26 16
25 25 24 23 25
21 22 21 13
17 18 11
16
6

Account-Based Marketing (ABM) Campaign/Lead Management Email Marketing

Account-Based Marketing (ABM) Campaign/Lead Management Email Marketing
Marketing Automation Mobile Marketing Search Advertising and SEO Marketing Automation Mobile Marketing Search Advertising and SEO
Social Advertising Social Advertising

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia 59
 Content Marketing & Events Deal Volume
M&A Capital Raise Volume
• M&A volume in the Content Marketing & Events sector remained relatively flat in Q4 2023, • Capital raise volume in the Content Marketing & Events sector declined in Q4 2023,
marking a shift from the prior upward trend reversing the upward trend seen in previous quarters
• Notable recent transactions include Enghouse Systems’ $16M acquisition of MediaSite in – Content Marketing and Video Marketing platforms accounted for most of the
February 2024 transaction volume in Q4 2023
– MediaSite operates a cloud-based video platform that offers powerful features like • Notable recent raises include Contents.com’s $18M Series B raise in January 2024
video recording, live streaming, management tools, accessibility tools, engagement – Contents.com develops an AI-enabled SaaS platform intended to offer automated
tools, and virtual events content creation tools to support any business with its daily content marketing needs
• Notable recent transactions include Cvent’s acquisition of Jifflenow in January 2024 • Notable recent raises include AdPipe’s $6M Series A raise in December 2023
– Jifflenow provides B2B meeting scheduling automation software, APIs, and related – AdPipe operates a video marketing platform aimed at creating impactful content from
mobile application with features for tracking meetings, receiving alerts, updating existing videos by repurposing existing material into custom, bite-sized content like
information, viewing meeting details, and sending notifications gifs, graphics, and soundbites

Top Subsectors by Transaction Count (2019-2023) Top Subsectors by Transaction Count (2021-2023)
24 24 34

18
16 22 22
15 20 21
14
13 13 13 18 18 18
12 12
11 11 11
14 13
9 9 9 9
8 11
10
6

Content Marketing Interactive Content Video Marketing Events Meetings & Webinars Content Marketing Interactive Content Video Marketing Events, Meetings & Webinars

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia
Capital Raise Transactions below $1M are not included 60
 eCommerce & Customer Experience Deal Volume
M&A Capital Raise Volume
• M&A transaction volume in the eCommerce & Customer Experience sector increased in • eCommerce & Customer Experience capital raise volume increased in Q4 2023 as
Q4 2023, marking a positive shift from previous quarters transaction activity continues to keep in-line with modest pre-pandemic levels
• Notable recent transactions include ParTech’s $189M acquisition of Stuzo in March 2024 – eCommerce Platforms and Carts received the bulk of investor interest, consistent with
– Stuzo provides open commerce software with features for digital storefronts and historical trends
customer engagement, helping organizations manage contactless commerce • Notable recent raises include Fermat’s $17M Series A raise in December 2023
programs that support a wide variety of payment experiences – Fermat develops a creator-driven distributed eCommerce platform intended to help
• Notable recent transactions include Qoo10’s $173M acquisition of ContextLogic in creators embed brand-direct shopping experiences on their sites
February 2024 • Notable recent raises include Lily AI’s $12M Series B raise in December 2023
– ContextLogic is the operator of Wish.com, a customer-focused online eCommerce – Lily AI seamlessly injects customer-centric product attributes into Google Search, site
shopping site for global consumers, retailers and merchants search engines, recommendation systems, and more to drive exponential lifts in traffic,
conversion, revenue, and brand loyalty

Top Subsectors by Transaction Count (2019-2023) Top Subsectors by Transaction Count (2021-2023)
34
49
29 30 30
27 28 28
38
24 34 35
33
21
18 19 28
17 26
15 23
14 14 21
12 13 18
9 10 14
7 12

CMS & Web Experience Management eCommerce Platform and Carts Live Chat & Chatbots CMS & Web Experience Management eCommerce Platform and Carts Live Chat & Chatbots

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia
Capital Raise Transactions below $1M are not included 61
 Breakdown of Capital Raise Transactions by Series
64
65

52
46

39
31

26
16

13 10
6
4 4

0
2022 2023 2022 2023 2022 2023 2022 2023
Series A Series B Series C Series D

eCommerce & Customer Experience Omnichannel Marketing & Analytics Loyalty & Customer Engagement Content Marketing & Events

Capital Raise Overview

• With the exception of Series A, transaction volume decreased or remained flat in 2023 across all investment stages compared to 2022 as economic headwinds depressed overall
transaction volume
• As companies balance their fundraising needs amid uncertain economic conditions, the increase in Series A transaction volume signals that early-stage companies who delayed raising
capital due to market conditions are now seeking capital in order to maintain their cash position and fuel growth
• The eCommerce & Customer Experience sector accounts for the majority of overall capital raise volume, with an especially noticeable impact in later rounds

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia
Capital Raise Transactions below $1M are not included 62
 Capital Raise Transactions
Series A Series B
25 15
13
20
20 19 12 11
18 18
10
15 15
15 14 14 9
13 13 8
7 7 7
6 6
10 9
8 6 5

3
5 3 2

0 0
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
eCommerce & Customer Experience Omnichannel Marketing & Analytics eCommerce & Customer Experience Omnichannel Marketing & Analytics
Loyalty & Customer Engagement Content Marketing & Events Loyalty & Customer Engagement Tools Content Marketing & Events

Series A Observations Series B Observations

• Series A capital raise volume increased noticeably in Q4 2023, marking an increase in activity that now • Series B transaction count continued to increase in Q4 2023, but remains below historical levels
trends back towards historical levels as a result of high interest rates and macroeconomic pressure
• The Loyalty & Customer Engagement sector made up the bulk of investment volume in Q4 2023, a • Throughout 2021, eCommerce & Customer Experience transactions account for the majority of the
difference from Q4 2022 where eCommerce & Customer Experience and Omnichannel Marketing & Series B raises
Analytics dominated Series A activity • The decrease in Series B funding throughout 2023 is partially driven by the decrease in Series A raises
• Series A transaction volume in the Content Marketing & Events sector has held relatively steady over in 2022 leading to an overall decrease in maturing companies and less need for follow on capital. We
the past four quarters, but is now beginning to show an uptick in tandem with the other sectors expect to see an increase in Series B transactions in the coming quarters as the influx of companies
that raised a Series A round continue to grow and mature

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia
Capital Raise Transactions below $1M are not included 63
 Capital Raise Transactions
Series C Series D
10 5

8 4
8 4

6 6 3
6 3
5
4 2 2 2 2
4 2

2 1 1 1
2 1
1 1 1 1 1

0 0
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23
eCommerce & Customer Experience Omnichannel Marketing & Analytics eCommerce & Customer Experience Omnichannel Marketing & Analytics
Loyalty & Customer Engagement Content Marketing & Events Loyalty & Customer Engagement Content Marketing & Events

Series C Observations Series D Observations

• Series C capital raise volume remains depressed in Q4 2023 as macroeconomic pressure continues • Series D continues to remain limited as late-stage activity suffers from suboptimal conditions as well as
to impact late-stage activity as well as limited publicly available data limited publicly available data
• Like earlier series, eCommerce & Customer Experience and Omnichannel Marketing & Analytics • eCommerce & Customer Experience companies account for most Series D raises, continuing the trend
companies have retained most of the interest from investors observed throughout all series. However, in recent quarters the subsector has received limited later-
• Interest in Loyalty & Customer Engagement and Content Marketing & Events platforms wanes stage investments
considerably post Series B, indicating that these sectors are generally in an earlier stage of the • We expect overall investor appetite for late-stage capital raises to rebound over the next year as
startup lifecycle compared to other sectors economic conditions improve and companies continue to grow and seek follow on capital
• We expect Series C raises to return in the coming quarters with improving economic conditions

Source: Pitchbook and 451 Research; data includes US, Europe, and Asia
Capital Raise Transactions below $1M are not included 64
Section 8

Cascadia Capital
Overview
Cascadia Capital —
A National Investment Bank Platform
We combine sub-vertical expertise, a diverse platform, and a long-term partnership approach as we seek to create exponential
outcomes for our clients.

National Presence, Founded in 1999, Cascadia is an independent advisory only investment bank, partnering with clients across the nation to deliver
Global Reach transaction advisory services globally. We have completed over 495 transactions and have seven office locations.

A Highly Specialized Team Cascadia leverages our bankers’ deep sub-vertical industry expertise to deliver a more highly specialized degree of knowledge,
with Sub-vertical Expertise positioning and process, resulting in premium valuation in a highly efficient process.

Our commitment is to deliver a customized and unique process for each client. We integrate storytelling and positioning with best-
Customized Process
in-class financial and process rigor.

Cascadia focuses on optimizing outcomes, not just getting deals done. Often this includes advice to go to market later when the
Direct Long-term Partnership
combination of company and market elements are more ideal. We pride ourselves on delivering direct advice focused solely on the best
to Optimize Each Client Outcome
interests of our clients.

Across the industries we cover and products we deliver, the tie that binds us is a sole focus on serving growth companies. We
Growth Focused
know how to position growth to drive maximum value in any market.

Cascadia is a growth company. In October 2022, we received a large minority growth equity investment from an institutional
Institutional Growth Financing investor focused on financial services and are deploying this capital to expand our industry sub-verticals, add more products and
to Better Serve Our Clients services, expand our private equity coverage, and grow our geographical coverage, all to provide our clients with broader and more
comprehensive value-add.

66
Customized, Repeatable Approach
Drives Optimal Client Results

Sub-vertical Customized
Proven Results
Industry Expertise Approach

 With bankers across the nation, specialized  We are thoughtful advisors who deliver a  We have experience, industry focus and
in multiple industry verticals, we have the tailored process to suit the needs of our clients. a differentiated process that drives success.
experience to offer industry breadth while
maintaining sector depth.  We understand the differentiated strategies  Our transactions are built upon striving to deliver
of the counterparties, enabling us to tailor the best quantitative and qualitative terms with
 A dedicated resource model with positioning and tell them why they should the most desirable counterparty.
comprehensive vertical expertise from uniquely be interested.
Managing Director  We do not overpromise and underdeliver.
to Analyst.  We anticipate and preempt client-specific risks We strive to outperform our pitch range and
and areas of concern. exceed the valuation expectations of our clients.
 We know the market. We know the buyers.
We know the nuances, issues, and
opportunities.

67
Complementary and Integrated
Investment Banking Services

Mergers & Capital Strategic Financial

Acquisitions Markets Advisory Sponsors Group

 Sell-Side Representation  Acquisition Financing  Fairness Opinions  Private Equity

for Private Equity and
 Buy-Side Representation Private Companies  Corporate Valuations  Family Offices

 Management Buyouts  Structured Capital  Shareholder Rights Planning  Institutional Investors

 Leveraged Buyouts  Recapitalizations  Shareholder Value Analysis  Credit Managers

 Growth Equity  Strategic Partnerships &

Joint Ventures
 Unitranche

 Mezzanine/Subordinated Debt

 Preferred and Common Equity

68
We Drive Results
Cascadia’s most recent transactions:

69
Software Overview

Deep sub-vertical experience Domain experts

 Over 80 years of combined experience in Technology M&A and  Specialized knowledge of the Technology sector
financing
Strategic client positioning
Operational and corporate development expertise  Ability to effectively position clients with suitable partners or
 Prior and current experience in operational and corporate investor
development

Representative Transactions Principal Sector Focus

Application Software Infrastructure Software

 Compliance & eLearning  Public Safety
 Data
 Financial Technology  Sales, Marketing & Support
 Security
 Human Capital Management/ HR Tech  Supply Chain Technology
 Software Development & IT Operations
 Legal & Tax Solutions
 Retail & Commerce Technology Management (“DevOps”)
 Storage
Our Specialized, Expert Team

Teague Collins Jim Stone

Sales & Marketing Technology, Payments/FinTech,
Retail & Commerce Technology, Application Software, Legal/Compliance/
Supply Chain Technology Regulatory Tech

Matthew Riendeau
DevOps, Cybersecurity,
Data, Storage
70
Cascadia’s Sales & Marketing Tech Expertise

CX Platform for Virtual Event & AI-Based Conversion Queue-Based Sales UGC, Ratings, Reviews, and Video Automation Platform for Sales and Predictive Analytics
Customer Support Engagement Platform Optimization Platform Engagement Platform Influencer Marketing Platform Marketing Teams Marketing Platform

Premium B2B Wholesale Sales Accounts Content-based, AI-Powered, Retail Virtual Event Management AI-Driven Product Recommendation Go-To-Market Intelligence Influencer Product Discovery
Marketplace Engagement Platform Product Recommendation Engine Platform and Customer Experience Engine Platform and Reviews Platform

a portfolio company of

a portfolio company of

Digital Customer Experience Social Customer Feedback Technographic Intelligence Influencer Marketing Influencer Product Discovery Experiential Digital Go-To-Market Intelligence
Management Platform Management Solution Platform for Sales Teams Automation Platform and Reviews Platform Marketing Agency Platform

71