The Great Marketing Software Disruption: Why Salesforce and Adobe Should Be Worried

Research Report | October 2025

Axum Group of Companies - Investment Research Division

The marketing software industry is experiencing a seismic shift that reminds me of the early days of cloud computing disruption. After analyzing the latest financial data and market trends, I'm convinced we're witnessing the beginning of a massive market share transfer from legacy giants like Salesforce and Adobe to AI-native upstarts.

The numbers tell a compelling story: despite generating nearly $60 billion in combined annual revenue, these industry titans face an existential threat from companies like Zeta Global, which just delivered its 16th consecutive "beat and raise" quarter with 35% year-over-year growth.

The Legacy Giants: Powerful but Vulnerable

Salesforce: Dominant but Showing Cracks

Salesforce remains the undisputed CRM king with 21.8% global market share and $37.9 billion in fiscal 2025 revenue. But dig deeper, and concerning trends emerge:

• Growth deceleration: 9% year-over-year growth represents a significant slowdown

• Complexity crisis: Customers increasingly complain about implementation nightmares and sky-high total cost of ownership

• AI latecomer: Their Agentforce initiative, launched in late 2024, feels reactive rather than revolutionary

The company's $13.1 billion operating cash flow shows it's still a money-making machine, but velocity matters in technology, and Salesforce is losing speed.

Adobe: Creative Powerhouse, Marketing Laggard

Adobe's $21.5 billion fiscal 2024 revenue (11% growth) masks deeper strategic challenges:

• Late to the AI party: Their AI Agents announcement came in September 2025 – months behind competitors

• Platform fragmentation: Multiple disconnected tools (Creative Cloud, Experience Cloud, Marketing Cloud) create integration headaches

• Subscription fatigue: Customers are increasingly resistant to Adobe's complex pricing and product maze

The AI-Native Disruptors: Built Different

Zeta Global: The Most Dangerous Competitor

Here's why Zeta Global ($4.38 billion market cap) represents an existential threat to legacy providers:

Financial momentum that matters:

• $308 million Q2 2025 revenue (35% YoY growth)

• 114% net revenue retention

• 16 consecutive quarters of beating guidance

Data network effects:

• Tracks 245 million U.S. consumer profiles with digital permissions

• Each new client improves targeting for all existing clients

• Creates switching costs that protect market share

Enterprise credibility:

• Serves 44 of the Fortune 100

• Proves AI-native platforms can compete at the highest levels

True AI-first architecture:

• Unlike retrofitted AI, Zeta built intelligence into its core from day one

• Processes billions of data signals in real-time

• Enables predictive capabilities legacy batch-processing systems can't match

HubSpot: The Mid-Market Menace

Don't sleep on HubSpot's enterprise ambitions:

• $2.6 billion 2024 revenue across 216,000+ customers

• Named #1 Marketing Software for enterprise, mid-market, and SMB on G2

• Unified platform eliminates integration nightmares that plague Salesforce implementations

• Transparent, scalable pricing vs. legacy licensing complexity

The Specialist Threat

Beyond these major players, specialist AI companies are picking off specific use cases:

• Braze dominates mobile-first customer engagement

• Klaviyo owns e-commerce marketing automation

• Emerging AI tools like Rad AI and Infloso AI outperform generalist platforms in focused applications

Why This Time Is Different

1. AI-First vs. AI-Retrofitted

The fundamental difference isn't about having AI features – it's about architectural DNA:

• Legacy approach: Bolt AI onto existing systems

• Native approach: Build AI into the foundational architecture

This isn't just a feature gap; it's a structural advantage that compounds over time.

2. Platform Unification vs. Tool Proliferation

Legacy providers grew through acquisition, creating integration nightmares:

• Salesforce reality: Multiple disconnected tools requiring expensive specialists

• Upstart advantage: Unified platforms with consistent data models and real-time sync

3. Transparent vs. Complex Pricing

Pricing models reveal strategic philosophy:

• Legacy model: Complex licensing with unpredictable costs

• Disruptor model: Usage-based pricing that scales with business growth

When you factor in implementation, integration, and maintenance costs, newer platforms often cost significantly less.

The Disruption Math

I analyzed eight key disruption factors and scored legacy vs. upstart companies:

Legacy providers average score: 3.1/10

Upstart companies average score: 8.6/10

That 5.5-point disruption gap represents a massive competitive vulnerability.

Market Share Shift Indicators

Several trends confirm accelerating disruption:

Enterprise Adoption

• Zeta Global's Fortune 100 penetration proves AI-native platforms can win at the top

• HubSpot's successful move upmarket challenges Salesforce directly

Investment Patterns

• AI startups captured 31% of global venture funding in Q3 2024 (up from 13% in Q3 2022)

• AI-native marketing companies trade at premium valuations vs. legacy providers

Technology Cycles

• Legacy providers need years to integrate AI meaningfully

• Native platforms deploy new AI capabilities in months

• Innovation gap is accelerating, not narrowing

Strategic Implications

For Legacy Providers

The window for meaningful response is narrowing:

• Accelerate AI integration beyond current efforts

• Simplify product portfolios and pricing structures

• Address technical debt that limits innovation speed

For Upstart Companies

Maintain momentum while building enterprise credibility:

• Scale enterprise capabilities without losing core advantages

• Expand market coverage to capture share from generalist providers

• Sustain innovation pace – first-mover advantages can be temporary

For Enterprise Buyers

Don't get caught behind the curve:

• Evaluate total cost of ownership, not just license fees

• Prioritize AI-native capabilities for long-term competitive advantage

• Plan migration strategies from legacy platforms

The Bottom Line

We're not witnessing gradual market evolution – this is disruption in fast-forward. Companies like Zeta Global aren't just competing with Salesforce and Adobe; they're redefining what marketing software should be.

The legacy giants have massive resources and established customer relationships, but they're fighting architectural limitations and customer friction that worsen over time. Meanwhile, AI-native competitors get stronger with each client added to their data flywheel.

My prediction: Within three years, we'll see significant market share shifts that reshape the entire marketing software landscape. The companies that recognize and act on this disruption will thrive. Those that don't risk becoming the next Blackberry or Kodak – former industry leaders who couldn't adapt to fundamental technological change.

Disclaimer: This content is for informational purposes and is not investment advice. Past performance does not guarantee future results. All investing involves risk. Consult a professional before making major investment decisions.

About Axum Holdings: Founded in 2012, Axum is a private investment holding company focused on steady cash flow and long-term value through diversified holdings.