In today’s competitive landscape, businesses have poured billions into marketing technology (martech) systems. Yet, a remarkable 99% of them plan to update their setups in the upcoming year. This striking statistic, drawn from an Acxiom study surveying 200 marketing leaders across the UK and US, highlights a trend where practicality reigns supreme. While companies have historically focused on brand awareness and customer acquisition, a solid martech strategy is increasingly taking precedence. So why this rush to modernize?
A significant 35% of companies are prepared to abandon their current martech tools altogether, while many aim to refine or complement what they already have. As marketing’s role expands within businesses, C-suite executives are paying closer attention to martech investments. This shift underscores that marketing technology is no longer confined to the marketing department; it is a crucial aspect of overall business strategy.
One area receiving attention is the ongoing evolution of AI in marketing. Yet, only 21% of respondents consider marketing AI implementation a primary objective, which suggests a cautious approach to integrating sophisticated technology. While AI has been a hot topic, practical concerns often rank higher on the agenda. For many businesses, ensuring support for new communication channels, improving performance, and enhancing customer experience are the immediate goals for upgrading martech systems.
Economic uncertainty has not deterred growth in martech budgets. In fact, 65% of respondents expect their budgets to rise by 5% to 20% over the next year, with only 10% anticipating cuts. The willingness to invest further indicates that businesses recognize the importance of staying competitive in this landscape.
Despite the enthusiasm for budget increases, the integration of AI into martech remains low. Over half (54%) of surveyed businesses have yet to incorporate AI into their systems, and even among those using AI, many are still only utilizing basic features, such as content recommendations. More advanced applications, like customer segmentation and real-time personalization, remain scarce. This hesitation to adopt advanced capabilities reflects a broader challenge: the majority of martech solutions currently in use are outdated, with 53% of respondents admitting their tools no longer meet their needs.
The struggle with measuring effectiveness and attribution remains prevalent, as highlighted by 37% of respondents who identified it as their top challenge. This hurdle is often compounded by disconnected data systems. Siloed data poses a significant barrier; 29% of businesses report that unifying customer data is a key challenge. An overwhelming 68% agree that fragmented data restricts their ability to deliver personalized and timely customer experiences.
Interestingly, the Agility Marketing Strategy report shows that well-integrated martech can lead to a staggering increase in conversion rates. For example, companies that use centralized data repositories to manage customer interactions report up to a 35% improvement in engagement metrics. This data demonstrates the critical role that unified, accessible information plays in shaping successful marketing strategies.
The Acxiom report draws a vital conclusion: brands are committed to modernizing their martech stacks to leverage emerging technologies and maintain competitiveness. However, slow progress is evident due to challenges such as martech complexity, delays in cloud migration, and insufficient internal expertise. To navigate these issues efficiently, organizations should consider forming a dedicated internal team focused on martech. Additionally, collaborating with experienced service partners can help address skill gaps and expedite modernization efforts.
The modern marketing landscape will continue to evolve as businesses prioritize the integration and enhancement of their martech stacks. By addressing obstacles like data fragmentation and implementing advanced technologies, companies can provide better, more relevant customer experiences. As firms turn their focus to practical and measurable objectives for 2024, the integration of technology and data becomes not just a competitive advantage but a necessity.
As we move into 2024, the marketing landscape will be shaped by how companies respond to these challenges and opportunities. The commitment to refining martech tools promises to enhance not only marketing outcomes but also overall business success.
