What is MarTech?
MarTech refers to the use of technology in the marketing of products and services. It is the union of marketing with technology. It includes the entire gamut of services which use various technologies for digital marketing, social media marketing, search engine optimization, email marketing, web analytics and all the other marketing tools which are based on technology. Such tools are used for the promotion of products and services, for understanding and analysis of customer data and eventually to deliver a superior customer experience. The entire set of tools which a marketer uses is called his MarTech stack.
What are the tools used in MarTech?
MarTech includes tools like Content Management Systems such as WordPress, Email Marketing platforms such as Mailchimp, Social Media Management platforms such as Hootsuite, Website Analytics tools such as Google Analytics and Fullstory, Online survey and feedback collection tools such as Typeform and many more. Marketers from large and small businesses make use of such tools to attract the attention of their audiences via blogs, websites, promotional emails, and social media campaigns. They also use these tools to study the behaviour of their audiences on their websites and blogs and also to monitor and study the response of their audience to social media campaigns and email campaigns. The range of MarTech tools that you can use for marketing is limited only by your imagination and access to information about the industry.
Size of the MarTech Industry.
The size of the global MarTech industry in 2021 was estimated at 345 billion US Dollars according to a study. The value of the MarTech industry in the US and UK was estimated at 150 billion US Dollars during the same period. There are an estimated 9932 MarTech solutions across 49 categories available in the market as of today. This has grown exponentially from just about 150 solutions available in 2011. The number of MarTech solutions available in the market is expected to grow at a much higher rate in the coming decade. The MarTech industry has grown at a rate of 24 percent in the last two years. While the industry as a whole grew by 24 percent, some categories within MarTech such as Content & Experience (34%) and Management (67%) grew at a much faster rate.
Trends in the MarTech Industry since the pandemic.
At the onset of the pandemic in 2020, it was believed that the MarTech industry would shrink and major exits were expected. However, the opposite happened. In the pursuit of giving customers a better customer experience, many large and small businesses turned to MarTech to streamline their services. This resulted in increased spending on MarTech and the entry of several new players in the industry. While there were 972 exits in the MarTech industry in the last two years mainly due to acquisitions, pivots and shutting down of failed units, the period also saw the entry of 2904 new MarTech solutions.
MarTech Industry Highlights 2022.
- Presence of Global as well as Local MarTech players.
- High level of acquisition and consolidation in the industry despite which the number of solutions continues to grow.
- Entry of a high number of specialist and custom apps at the top of the MarTech spectrum accompanied by the presence of a low number of Cloud, API and App platforms ( with a large market share) at the bottom of the spectrum which facilitate the development of custom apps and specialist apps.
- Platform consolidation at the lower level of the MarTech spectrum drives App Expansion at the higher levels.
- The exponential growth in the number of MarTech solutions in the last decade will continue in the coming decade.
- Scope of improvement in the number and degree of integration among apps.
- A lot of scope for aggregation in the industry. Aggregation means making a large number of things easier, safer and more effective to work with by integrating them through a common platform.
- Increasing cases of integration of the MarTech stack, with the broader business tech stack.
- The proliferation of domain-specific ops functions and the increasing interconnectivity among them with the use of aggregation technologies.
- Presence of a high number of SaaS-based applications in an organisation’s tech stack.
- MarTech stacks often evolve in a Hype-Cycle pattern. This means that organisations initially over-invest in MarTech, then realise their limitations in utilising all the tools, resulting in disinvestment. This is followed by reinvestment but with a better awareness of their ability to utilise the tools and a more cautious approach.
- Organisations with a high MarTech maturity have a larger MarTech stack.
- The MarTech landscape as well as the MarTech stacks of organisations exhibit a long-tail pattern. A long-tail pattern means that a small number of vendors have a large share in each product category while thousands of small vendors follow them with thin market shares. A few popular apps find a place in the MarTech stacks of all businesses while the use of the less popular ones is scattered across organisations.
- MarTech stacks of most organisations include an equal mix of ready to use and custom-built apps. Organisations are increasingly using a combination of off the shelf products and custom-built products in their tech stack.
- 75 percent of marketers admit to not having the technical ability to achieve their digital aspirations.
- 90 percent of marketers are focused on technology while only 10 percent focus on talent management and organisational development.
- Marketers will perform better if their organisations spend as much on organisational development and deployment as they spend on MarTech.
- 44 percent of marketers have not used their technology to the optimum level during the pandemic.
- The integration of the existing MarTech stack was found to be the biggest challenge in improving ROI.
- While the adoption of new MarTech solutions can solve problems, it can also create new data silos and result in inadequate investment in important areas.
- 72 percent of the marketers are more inclined to spend resources on managing existing data than to acquire new data.
- 76 percent of marketers are communicating with their customers through personal multi-touch emails and multi-channel communication. Just 9 per cent are engaging in hyper-personalised communication.
- Many companies are planning to increase their marketing budget by 5-15 percent over 2021.
- Technology migrations and deployment are not slowing down.
The MarTech industry has grown exponentially since its beginnings over a decade ago. But the pace of growth has not slowed down. The next decade is expected to be even more rewarding for the industry, with many more solutions entering the marketplace and wider adoption of the tools by businesses and organisations. MarTech will continue to serve businesses with better tools to simplify processes, increase market share and improve customer experience.