CDPs remove bottlenecks that prevent marketers from building a complete view of each customer. As more marketers recognize what CDPs can do, the industry will grow very quickly.
Swarthmore, PA (PRWEB) January 18, 2017
Customer Data Platform vendors had more than $300 million revenue in 2016, according to a report released today by the Customer Data Platform Institute. The industry is expected to grow at least 50% per year in the near future, reaching over $1 billion total revenue by 2019.
The report is the first published analysis of the size of the Customer Data Platform (CDP) industry. CDPs let marketers build persistent, unified customer databases which can easily be accessed by other systems. The report covers 27 firms whose primary business is providing CDPs. It is based on public and private data, including confidential information provided by the vendors.
Other key findings in the report include:
- total funding for CDP vendors has exceeded $700 million
- CDPs are deployed at 2,500 or more companies
- average price per installation is close to $100,000 per year
“We were aware anecdotally that CDPs were becoming more common, but these are the first figures that show the actual industry size,” said CDP Institute CEO David Raab. “They confirm that many organizations have already recognized the value of these systems and adopted them. There’s no doubt that the industry’s momentum will grow as the benefits of CDPs become more widely understood.”
Raab said that CDPs are uniquely attractive because they solve problems faced by alternative approaches to building a unified customer database, often called a Single Customer View. Among the advantages he cited are:
- marketer control, compared with data warehouse and data lake solutions typically managed by corporate IT departments
- central, permanent data storage, compared with integration hubs that send data to local systems that may not be designed to store it properly
- open access to data by external systems, which is often not possible with integrated products that are designed to use data internally
Easy access to customer data is especially important because of the proliferation of marketing systems, Raab noted. Companies cannot expect a single system to generate all their customer data or to execute all marketing programs. This means they need an independent customer data repository that is designed to work equally well with whatever systems a marketer has today or in the future.
The Customer Data Platform Industry Profile report is available for free in the CDP Institute Library at http://www.cdpinstitute.org.
About the Customer Data Platform Institute
The Customer Data Platform Institute is a vendor-neutral organization that educates marketers and marketing technologists about customer data management. Activities include publishing of educational materials, news about industry developments, creation of best practice guides and benchmarks, a directory of industry vendors, and consulting on related issues. For more information visit http://www.cdpinstitute.org.