Majority of CDP spend driven by retail and digital media enterprises: Juniper Research

Customer data platform (CDP) spend is being driven by two markets, retail and digital media enterprises according to a new Juniper Research study.

According to the new report, these two factors will account for US$1.5 billion of global spending in 2023; exceeding 70 percent of the global market value.

Juniper Research forecasts that this will rise to $5.2 billion by 2028.

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

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.

Elisha Sudlow-Poole, report author at Juniper Research said 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,” she said.

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.