The marketing technology market around the world grew 22% last year and is presently valued at an estimate of $121.5 billion, according to a new report released by WARC. This report also highlights an increased need for associated data analysis skills.
Martech: 2020 and beyond, published recently in association with BDO, an accountancy and business advisory firm is based on an annual survey of over 750 brands and agencies in Europe, North America and Asia-Pacific to assess the current state and future expectations of the marketing technology industry, including analytics tools, automation software, and emerging tech such as AI and database skills amongst the marketers.
Some key findings :
1. Steady Martech Budget
The majority of marketers around the world expect martech budgets to stay the same throughout the following year, however, a significant proportion i.e. around 43% of them expect an increase; only 4% expect budgets to decrease. On average, brands in North America and the UK are spending 26% of their financial budgets on martech compared to 23% last year.
The split between in-house and outsourced technology is around 50:50 in all regions, a ratio that offers space for growth in both the markets, outsourced as well as in-house tech vendors.
Marketing technology is enabling marketers to enhance their media spend. Previous year most brands felt that increased investment in martech had caused their media spends to decrease, but this year that number has dropped to under a third; a majority of the respondents feel that media spend has been unaffected by martech investment.
2. Capabilities of Martech
Over three-quarters of brands use martech to help them with email and social media, and around two-thirds of brands utilize martech for CRM, content, and analytics. But as brands focus on customer experiences over specific media, the tech that empowers marketers with experience optimization and tracking are developing areas in the martech space.
The overall picture is one that has not yet reached maturity; only 24% of marketers worldwide, 27% of UK marketers and 15% of marketers from North American think they have all the martech tools they require.
3. The need for data integration skills
68% of brands and 83% of agencies around the globe have seen an increased need for data integration skills associated with the use of marketing technology. Creativity was selected by 49% of brands as a priority over strategy and data, of which 21% considered it to be a top priority. In contrast, only 25% of agency respondents feel creativity should be the focus, prioritizing instead of strategy and data.
A key driver of the requirement for outsourcing marketing technology functions to agencies is a lack of expertise on the brand side; skills are a much-discussed topic, whether in terms of upskilling internally or hiring discipline specialists, and opinions on which skills should be the priority differ among businesses.
3. Increased focus on customer experience
The customer experience (CX) has become a strategic priority for businesses competing for customer attention in an omnichannel world. Despite 96% of brands surveyed stating Customer experience is significant both offline and online, under 50% are using martech to track customers between channels. But 73% feel that they have the technology in place to optimize the customer experience over most, if not all, channels and touchpoints.
4. Growth lies in the adoption of technology and data input skills
Less than 40% of the brands that responded are currently utilizing the Internet of Things (IoT) or connected devices, and a further 36% have no plans to use the tech in the following year.
Artificial intelligence (AI) and cross-device identification (XDID) are referred to as emerging technologies that aid marketers in the focus on customer experience. Biometrics and facial recognition are the least-planned by respondents.
Managing Editor, Research & Rankings, WARC, Amy Rodgers, stated that “The wealth of technology available presents a myriad of choices for marketers, who have to decide where to place budget – a decision that carries risk when it comes to nascent technologies. This perception of risk is reflected by 29% of respondents selecting a lack of understanding of the technology available. The fact that this proportion has not decreased since last year illustrates the constant change in the industry and reinforces the need for specialist martech data input skills to ensure effective budget allocation.”
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ABOUT THE AUTHOR
Chandrima Samanta
Content-Editor at MartechCube
Chandrima is a Content management executive with a flair for creating high quality content irrespective of genre. She believes in crafting stories irrespective of genre and bringing them to a creative form. Prior to working for MartechCube she was a Business Analyst with Capgemini.