Martech systems might be notoriously difficult to get in tune with marketing strategy but it seems there is no stopping CMOs from splashing cash, with strong digital transformation efforts and advancements in AI driving demand for sophisticated marketing tools worldwide.
According to a new study by Imarc Group, the global martech sector is set to soar in value to reach $2.43 trillion by 2033, with a compound annual growth rate of 18.41% during the forecast period.
North America dominates the market with a share of over 35.8% in 2024, primarily due to advanced digital infrastructure and technological innovation.
Perhaps unsurprisingly digital marketing commands 63.5% market share and leads over offline marketing, while social media tools hold the largest product segment with 25.8% market share in 2024.
Meanwhile, healthcare leads application segments with 20.8% market share, driven by digital patient engagement needs.
Globally in 2024, the main driver of martech adoption was the desire to enhance marketing processes, raise process efficiency, and establish closer relationships with customers, although as one recent McKinsey & Co study confirmed, “the best laid plans of mice and men often go awry”.
McKinsey, which estimated martech spend will reach $215bn by 2027, claimed most systems fail to deliver due to fragmented stacks, data silos and an inability to measure return on investment. In fact, not one of the senior CMOs it interviewed for its report was able to quantify the ROI of their martech stack; the very measure most systems are designed to show.
But with AI coming into the mix many tasks, such as carrying out repetitive ones, are being handled more efficiently while simultaneously enabling predictive analytics and chatbots. This, Imarc maintains, gives marketers the freedom to focus on campaign improvements and innovations.
Perhaps unsurprisingly, then, the report points to AI as the main reason behind the growth, with 77% of marketers already using or investigating AI tools. In fact, some 83% of organisations rank AI as one of their most significant investment areas.
With AI-powered tools having the potential to sift through data, make campaigns personalised, and also do the creative work of content generation, Imarc reckons this will ultimately increase the performance of the campaigns and give marketers the opportunity to finally measure the ROI of ads. It points out that Microsoft Advertising introduced AI-powered suggestions for video and connected TV ads in July 2024.
The use of customer data platforms to consolidate customer data and fuel omnichannel personalised marketing is another factor driving growth. However, 85% of marketers claim that they deliver personalised experiences but only 60% of customers say that they receive them.
McKinsey is in no doubt what is required, as senior partner Kelsey Robinson said recently: “We need to apply the same discipline and focus that has long guided media investment, to martech.
“By connecting spend directly to outcomes like revenue growth, conversion, and engagement, organisations can unlock far greater value. But it requires a rethink of the tech, reskilling of talent and C-suite sponsorship. Only then we can turn martech from a cost-centre to a growth driver.”
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