November 5, 2019

The Rise and Rise of Marketing Technology

Thought Leadership by Jeremy Whale

There’s a new kid in town and he goes by the name of “Martech”. Martech, of course, is short for marketing technology which happens to be one of the newest and fastest growing industries here in Australia, as well as in North America and the United Kingdom.

Not to be confused with digital marketing, marketing technology can be described as a collection of technologies that digital marketers use in order to improve their online marketing efforts and activities. Think of it this way: if the digital marketing industry were hardware, then marketing technology would be the software that digital marketing needs to function properly.

According to a report published recently entitled “Martech: 2020 and Beyond” produced by marketers WARC, BDO, and the University of Bristol, an estimated $121.5 billion is currently being spent worldwide on marketing technology alone.

In fact, just as recently as 2017, that figure was much lower at only $34.3 billion in the sample markets of North America and the UK. So in a span of only two years, it basically doubled to $65.9 billion in those two markets alone, thus forming the basis to compute the estimated global martech spend of $121.5 billion.

So, what exactly do these numbers tell us?

One clear indication is that more and more brands are starting to realise tech giants such as Facebook and Google are not the only mediums to reach and engage consumers in the digital realm. With global marketing technology spending on the rise, it just goes to show that companies are seeking out new ways to be competitive, whilst operating more efficiently at the same time.

As with virtually all specialisations, marketing technology can be applied by brands either in-house or via a third party. Regardless of how you choose to incorporate martech to your monthly or annual marketing plan, the numbers from the study paint a clear and consistent picture.

Brands are now spending 26% of their budgets on marketing technology, compared to 23% just last year. That’s equivalent to a 13% increase in a span of just one year!  What’s more, this new thirst for marketing technology doesn’t show any signs of becoming satiated anytime soon.

Shifting trends show that more brands are favouring platforms over suites—that is, the preference of working with just one marketing technology vendor that allows more flexibility by augmenting the scope of work via a variety of specialist apps or providers.

Platforms are the format that Cloud Happy has adopted from the get go. This has allowed for seamless transitions among clients who were already familiar or proficient with certain technologies and applications, as well as freeing them from having to waste precious time on the learning curve and wrestling with new technologies all over again.

The good news for marketing technology is that for as long as brands are engaging their market online, this relatively new industry will continue to prosper and go from strength to strength. As digital marketing managers around the world continuously slug it out with their competition, each of them vying for a larger slice of the pie, the thirst for knowledge about the best marketing technology tools and how to use them will only grow more and more insatiable… and only the most informed marketing warriors will survive.