Marketers might bemoan their martech systems as too complex – or even inefficient – but the global market is now worth $344.8bn (£251bn), due in part to the pandemic, which has forced companies to fast-track digital transformation to match rapidly changing customer behaviour.
So says a new report by UK multidisciplinary professional services firm Moore Kingston Smith, in collaboration with the MarTech Alliance, which gauges the range of digital tools and software that marketers use across a range of industries, spanning the finance, entertainment, automotive, media and travel sectors.
The report reveals a huge increase in take up since 2019, when the market was valued at an estimated $121.5bn (£88bn), by international accountancy and business advisory firm BDO and WARC.
Moore Kingston Smith claims its methodology gives martech professionals more accurate insight than ever before on budgets, sector maturity, skills, knowledge and talent, as well as future and current trends. It insists the size of the market underlines the importance of marketing technology to organisations, with martech now central to most strategies.
And, with growing M&A and investment activity, the report predicts further growth to come: more than 61% of respondents expect marketing technology budgets to increase over the next 12 months.
However, the rapid adoption of tech has its challenges, the study warns, and many companies have yet to reach martech maturity.
The growth of the marketing operations role, and the use of training to develop the skills and knowledge required to make the most of martech investments will be a key solution.
Marketing and advertising agencies also face a challenge to keep up with this growth, but Moore Kingston Smith reckons there is opportunity to fill skills and knowledge gaps to help companies deliver a return on their martech budgets.
At the centre of this sits the importance of adapting to changing behaviour, and providing the best customer experience. In a digital-first world, this cannot be achieved without an effective martech strategy, the report maintains.
Moore Kingston Smith corporate finance partner Damian Ryan said: “Since 2020, practically every discussion with private equity, venture capital and high net worth individuals has martech on the agenda. Investors are more engaged than ever.
“I feel we are now seeing the longer term impacts of not just GDPR but also Covid and Brexit. This is against a positive backdrop for adspend which saw a surge in the US market of 23% in 2021 and is forecast to maintain double digit growth in 2022.”
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