Brands will spend just shy of $100 billion on marketing technology (martech) this year, with money to fund the expansion being pulled from traditional media activity. That’s a key finding in a new report from WARC and Moore Stephens.
According to the study, “Martech budgets have increased by 44 per cent this year – 23 per cent of marketing budgets are now spent on martech in the UK and North America, giving an estimated global market size for martech as $99.9bn for 2018.”
Amy Rodgers, Research Editor, WARC, said “There has been no discernible sign that the rate of growth within the martech space is slackening. With data volumes continuously increasing, this research shows that data, analytics and automation are key focuses for martech investment globally as marketers look for help with metrics and measurement. “
Rogers also reveals that understanding of the technology available continues to be an issue for brands. “Many planning to move tech in-house over the next year, agencies will have to adapt to a changing, advisory role in the martech strategies of their clients.”
The research suggests spending is focused on email and social media marketing tools, and for more than half of marketers globally, this spend is to the detriment of media spend, who say that increased martech spend has caused their media spend to decrease, say the authors of the report.
And the outlook for further investment looks solid, according to the study.