Juniper Research, the foremost experts in mobile messaging, has identified the two leading markets driving CDP (Customer Data Platform) adoption this year. These are:
1. Retail
2. Digital Media Enterprises
Together, they will account for USD 1.5 billion of global spend in 2023; exceeding 70% of the global market value. Juniper Research forecasts that this will rise to USD 5.2 billion by 2028.
The new report predicts that the increasing integration of CDPs, which identify users and their preferences, into CPaaS (Communication Platforms-as-a-Service) platforms, will enable enterprise users to provide personalised services, such as content recommendations and upselling opportunities.
CDPs Must Be Integrated into Core CPaaS Solutions
CDPs have historically been positioned as additional services that sit alongside CPaaS platforms; however, the report urges CPaaS vendors to fully integrate CDPs into their platforms. This will enable enterprises to centralise the management of outbound communications and marketing campaigns, and thus increase return on messaging spend.
Report author Elisha Sudlow-Poole commented: “Enterprises will not be able to fully realise the benefits of a CDP unless it has full access to user traffic data provided by CPaaS platforms. The retail and media spaces are prime examples, as CDPs provide targeted communication and personalised recommendations; a key differentiator in these highly competitive markets.”
Also Read: The Role of Social Media in Building Brand Communities and Driving Sales
Buy vs Build
The report determined that if a CPaaS platform chooses to buy a pre-built CDP solution, it is unlikely that this solution will be able to meet all business requirements, as each CPaaS platform has unique data inputs. Instead, the report recommends that CPaaS players build their own bespoke CDP solution to ensure that it can adhere to the exact specifications of the CPaaS platform. However, it warns that the bulk of investment when developing a CDP will be in data collections from multiple channels in real-time, to ensure the CDP provides maximum value to enterprise users.
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