by The global Employee Advocacy Tool Market is estimated to be valued at US$ 1.2 Bn in 2023 and is expected to exhibit a CAGR of 22 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Employee advocacy tools help businesses to empower their employees to share branded content, positive reviews, company news, products, and services through their personal and professional social networks. It allows companies to leverage their employees’ trusted relationships and social networks to authentically share brand messages with potential customers. Employee advocacy programs authentic marketing approach that builds awareness and trust through owned and earned tactics. With social media platforms becoming an integral part of personal as well as professional lives, employee advocacy tools enable businesses to expand their reach through employees shared networks in an authentic manner.
Market key trends:
One of the key trends in the employee advocacy tool market is the growing adoption of social media platforms. Penetration of social media is constantly growing with more users joining platforms like LinkedIn, Facebook, Twitter etc. With social becoming an integral part of everyday lives, companies are leveraging employee networks on these platforms to share branded content. Furthermore, modern employees expect to have social advocacy tools from their companies to showcase their pride and engage with contacts. This has propelled many businesses to adopt employee advocacy solutions to empower their distributed workforces to become brand ambassadors. Additionally, emerging technologies like AI and analytics enables precision and personalization further driving the adoption of employee advocacy tools.
Porter’s Analysis
Threat of new entrants: Low startup costs and lack of entry barriers pose a moderate threat to new entrants in the employee advocacy tool market. However, established players have strong brand loyalty and network effects that deter new competitors.
Bargaining power of buyers: Buyers have moderate bargaining power. They can negotiate on price and switch between vendors that provide similar tools. However, switching costs and need for integration limits their power to some extent.
Bargaining power of suppliers: Suppliers have low bargaining power given the availability of alternative component and technology providers. In addition, the buyer base of major vendors is large and diversified.
Threat of new substitutes: Substitutes like social media management tools pose a low threat given employee advocacy tools provide unique features like analytics and compliance capabilities.
Competitive rivalry: High as vendors compete based on pricing, performance, features and customer experience. Major players differentiate themselves in capabilities like analytics, reporting and channel support.
Key Takeaways
The Global Employee Advocacy Tool Market Demand is expected to witness high growth, exhibiting CAGR of 22.% over the forecast period, due to increasing need for employer brand building and performance tracking of advocacy campaigns.
The North America region currently dominates the market, accounting for around 40% share due to high social media usage in businesses across industries. Asia Pacific is expected to be the fastest growing market, growing at a CAGR of over 25% during the forecast period owing to growth of social media marketing in major Asian countries.
Key players operating in the employee advocacy tool market include EveryoneSocial, Hootsuite, Sociabble, PostBeyond, Dynamic Signal, Bambu by Sprout Social, Influitive, GaggleAMP, Rallyware, Ambassify, DrumUp, SocialChorus, Speakap, PostBeyond, Dynamic Signal, Sociabble, Bambu. These players are focused on enhancing their solutions capabilities and expanding into new markets to gain market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
