We didn’t need a study to tell us, but it sure is nice to have the validation. Martech is where it’s at for businesses in the US and UK. Global spending on digital marketing is approaching $100 billion this year, with a resounding majority of that budget spent within the US and Britain. This number marks a 44% growth in just one year.
The study, “Martech: 2018 and beyond” conducted by Moore Stephens in conjunction with WARC surveyed more than 500 brands in the UK and North America to assess their marketing technology behaviors and expenditures. We’ve summarized 3 key takeaways and how they should impact your 2019 planning.
Takeaway 1: Budgeting
You should already be spending about 16% of your marketing budget on martech. (If we lost you at “martech,” we’re talking about things like social media, SEO, SEM, voice assistants, content marketing, etc.) This is spending that is separate from traditional media, traditional marketing, and even traditional digital marketing such as online advertising place through intermediaries. To keep in line with current practices, businesses should be spending approximately 16% of their overall marketing budget on martech tools.
Takeaway 2: Increasing your budget
As we look into 2019, that 16% you should already be spending on martech—that should increase by 10%. Moore Stephens’ study found that a large portion of participants expect their martech budgets to increase over the next 12 months by at least 10%. So, as you prepare your 2019 budget, make sure you allocate funds enough to grow your martech expenditures thereby allowing your business to stay competitive in your market.
Where is the increase budget likely to go? For a third of respondents, they’re looking to spend more on optimizing user experience. From mobile optimization of websites, to personalized communications consumers are coming to expect experience optimization—and businesses are responding.
Takeaway 3: Using the right martech tools
This is perhaps—in our minds—the biggest takeaway from the study. Based on responses from the over 500 brands who participated, over half don’t think they have the right tools or skillset necessary to fully leverage martech to grow their business. Many will take the next 12 months to focus on partnering with providers to access the right martech tools for the job at hand, and in addition a majority of survey participants feel the need to access partners with the skills associate with martech use.
This is where Vivial has found our sweet spot. Martech tools without the skillset to back them up are virtually useless. Partnering with a company such as Vivial gives businesses access not only to cutting-edge, award-winning martech tools, but also the expert, on-demand service and expertise that power meaningful growth for your business. To learn more, contact us.
Click here to read the full Moore Stephens Report.