Martech Adoption Surges, Yet Discontent Deepens
New findings from the latest CMO Survey shed light on current marketing strategies. A vital takeaway from the survey is the intensifying expectations placed on Chief Marketing Officers to prove their value and return on investment, especially amid a transforming marketing environment.
The Fall 2024 survey posed different questions compared to the spring edition, limiting the ability for direct, side-by-side comparisons. Instead, this analysis will emphasize the martech segment of the survey while referencing other areas to provide context and insights regarding the results.
Trends in Budgeting and Challenges
While there has been a rise in budgets for CMOs, the percentage of total company budgets allocated to marketing has decreased, falling to 10.1% in Fall 2024 from a high of 13.8% in September 2022.
Similarly, marketing budgets as a percentage of total revenue dropped from 10.1% in spring 2024 to 7.7% in Fall 2024, marking the lowest level seen in over three years.
When firms need to trim expenses to boost revenue, marketing budgets bear the brunt, as executives slash these budgets 44.6% of the time—more than in any other department.
Explore further: Strategies for aligning processes to enhance martech utilization
Investments and Trends in Martech Usage
CMOs have made a slight reduction in martech expenditure as a portion of the overall marketing budget, decreasing by 0.9% since spring 2024.
Conversely, martech utilization has risen by 1.4% during this period, indicating a potential trend toward consolidating tools or swapping platforms to save costs.
The Effects of Martech on Performance and Expectations
The role of marketing technology is still viewed as significantly impacting business performance, rated 4.8 on a scale from one (minimal significance) to seven (major impact)—a number that has remained stable since spring 2024.
However, many are left underwhelmed by its results, with 54.9% of survey respondents expressing dissatisfaction regarding its return, marking an increase of over 6% since spring.
Explore further: The correlation between martech and corporate value
Adoption of Martech Tools in Marketing Operations
The survey results further clarify how CMOs are engaging with martech platforms:
- Martech tools enable 55% of marketing initiatives, leaving 45% relying on other methods.
- Only half of martech tools are utilized in operations, diminishing from 56% in the spring, even though martech is closely tied to marketing functions.
- A smaller number of CMOs are prioritizing the enhancement of data strategies and the elimination of data silos, decreasing from 51% to 48%.
- Marketing experimentation has experienced a slight drop, falling from 35.6% to 32.7%.
These developments point toward a possible correlation between the increasing dissatisfaction with martech and the reduced frequency of martech use across marketing and operational functions.
Advice for Marketers: Optimizing Martech ROI
Marketers encounter various challenges that extend beyond their technology arsenal, yet they hold a crucial position in enhancing the value and return of martech investments.
Reassess the Influence of Martech on Marketing Operations
CMOs should evaluate each martech platform (e.g., CRM, MAP, CDP) by considering:
- Can this platform reduce reliance on outside vendors?
- For instance, drag-and-drop tools enable internal teams to create and publish assets like social media posts, template emails, and SMS campaigns without the need for third-party assistance.
- Can my team deliver improved outcomes with this platform?
- Could user-friendly templates enhance the frequency of email communications?
Improve Customer Data Gathering
Since marketers are closest to data collection methods (such as website forms and in-app surveys) and their application in customer engagement (like campaign development and execution), they can have a significant impact on data integrity. High-quality data is simpler to process and integrate across platforms (CDP, CRM, data warehousing), thus minimizing the need for substantial operational or IT support and allowing for quicker utilization.
Key queries to keep in mind include:
- Do we have procedures in place to collect customer data in the most efficient manner possible?
- Is data governance accessible for marketers and relevant stakeholders?
Aligning Martech Investments with Performance Goals
While the Fall CMO Survey provides intriguing insights, it also prompts further inquiries regarding how organizations assign budgets for martech and optimize the use of these tools. The growing relevance of martech usage is undisputed. Even though all questions may not have clear answers, marketers can enhance martech value by concentrating on improving processes and refining data quality, as discussed above.
Explore further: Tips for marketers to enhance martech utilization
Email:
View terms.
OptiPrime – Global leading total performance marketing “mate” to drive businesses growth effectively. Elevate your business with our tailored digital marketing services. We blend innovative strategies and cutting-edge technology to target your audience effectively and drive impactful results. Our data-driven approach optimizes campaigns for maximum ROI.
Spanning across continents, OptiPrime’s footprint extends from the historic streets of Quebec, Canada to the dynamic heartbeat of Melbourne, Australia; from the innovative spirit of Aarhus, Denmark to the pulsating energy of Ho Chi Minh City, Vietnam. Whether boosting brand awareness or increasing sales, we’re here to guide your digital success. Begin your journey to new heights with us!