posted by Paul Davenport
These days, there seem to be about as many stats and predictions about the future of MarTech as there are MarTech solutions. As with any nascent tech sector, it’s widely agreed that the industry is about to enter the tail end of the “expand-and-contract” portion of its life cycle. Rather than balance -- and budget for -- an array of solutions, marketers will begin to hone in on the tools and technology they leverage for success in the coming years, indicating that the industry is on the verge of a major inflection point.
Take demand-side platforms (DSPs), for instance, which a few years ago were all the rage in the advertising space, but have seen their popularity decline by roughly 40 percent since 2016, according to research from ad-tracking firm Pathmatics.
At the same time, other areas of the MarTech space -- specifically, those that deliver data and automation (ahem, Localytics) -- are projected to experience a compound annual growth rate (CAGR) of roughly 10 percent over the next half decade, a recent report from Forrester Research found.
All said, the industry as a whole can expect to see an average investment of $682,000 on MarTech in 2019, if the latest study from Wipro Digital holds true, with only 8 percent of the more than 500 marketers surveyed planning to trim back on their MarTech budgets next year.
So what do all of these numbers add up to? One big takeaway is that marketers have a lot of money to spend on new tools and solutions, and maybe too many products to choose from. This all supports an even more glaring metric from research firm Warc: 45 percent of agency marketers polled indicate that the primary barrier to their firm’s investment in MarTech is a “lack of understanding of the technology available.”
While this may sound like a case of MarTech companies failing to effectively do their own marketing, the confusion among marketers really stems from an over-saturation of ineffective products within the space.
Take the transition from DSPs toward more data-driven products discussed above -- the market is still flooded with offerings that shout at consumers rather than listening to them. In the coming years, more brands are likely to abandon products that “cast the widest net” for ones that help them drive tailored, personalized experiences.
Enter Localytics. Our goal is to help marketers see the forest for the trees by empowering them with the data they need to craft messaging that appeals to their targets, rather than shouting at them. We understand that the future of marketing is digital, and our unique suite of tools is perfectly aligned with the goals of any marketer that’s embraced the digital age.
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