Marketing Technology Is Big (Really Big) Business

Spending on marketing technology is on the rise -- to the tune of $120 billion over the next decade, according to a venture capital firm.

Hold on to your hats, spending on marketing tech is about to take off -- US$120 billion over the next decade, up from $1.2 billion today. At least that's what Ashu Garg, general partner at Foundation Capital, sees when he gazes into his crystal ball.

"This is unprecedented growth in any software category I've ever come across," Garg says. "There's a fundamental shift, an irreversible trend, of consumers living in a digital world" that's causing a spike in demand for emerging marketing tech.

Foundation Capital, a Silicon Valley venture capital firm, follows more than a thousand marketing tech companies and has an impressive track record of investments in this market and has invested in companies such as Responsys, Tealeaf, Freewheel, Localytics and others. Garg came up with his $120 billion-in-marketing-tech prediction after many conversations with marketers and data analysis of spending trends.

Money Is No Object

And he's not alone in his rosy view of the market. Late last year, Gartner surveyed 300 companies and found that digital marketing spending averaged a quarter of the marketing budget in 2014. Half of the companies also plan to increase spending this year.

"Gartner's 2014 CEO Survey found that digital marketing was the No. 1-ranked CEO priority for technology-enabled business capability for investment during the next five years," says Yvonne Genovese, managing vice president at Gartner.

There's no question the CMO is the CEO's new best friend in the world of the digital consumer. The traditionally well-defined lines between sales, marketing and customer service departments are blurring, as digital marketers become the tip of the spear on virtually every customer interaction, including closing online sales.

In the world of the digital consumer, 80 percent of media will be consumed digitally, Garg predicts. The 30-second television commercial will fade into a bygone marketing channel, he says, underscored by Super Bowl spots costing half as much in a decade. Goodbye print media, replaced by digital displays and proximity-based advertising. And all media will be personalized to the consumer and bought and sold programmatically, Garg says.

"Marketing is a technical discipline now," Doug Milliken, vice president of global brand development at Clorox, told Foundation Capital. "We have to re-frame things we have been doing for 100 years."

Related: Why technology is now as important as creativity in marketing

Can Marketers Control the Message?

One of the top concerns among marketers is the changing nature of content.

Digital consumers have embraced an electric, chaotic word-of-mouth rapport with others online. These possibly crowd-sourced conversations are outside a marketer's control. Digital consumers share stuff on social media, participate on discussion boards, read blog posts, watch Youtube videos, scan customer reviews, and trust comments from strangers over marketing collateral.

Even worse for marketers, most of this "unowned" brand interaction occurs during the critical stage of passive shopping, not active shopping -- three out of four consumers will buy from a brand that rose to the top during passive shopping, says Foundation Capital.

Marketers competing with this unowned content can no longer simply deliver inspirational slogans and pretty pictures, rather marketing content must be chock full of customer stories, fact-based data or other relevant information that lifts it above the noise.

"Marketers must publish or perish," Garg says, as well as use marketing tech to identify the best unowned content and then find ways to amplify it.

While content creation, aggregation, analysis and delivery tools are important for marketers, they are only a piece of the larger marketing-tech puzzle. The many pieces, Garg says, are very complex for marketers to digest and incorporate into their workflow. Foundation Capital has identified some 20 tasks that marketers will need to rely on marketing tech to accomplish, ranging from stitching data together to programmatic buying to surfacing relevant insights at the exact right time to take action and help close the deal.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Are you sure they wont start a platform that the cheese is white, pretty sure that is racist

Hite

New brand name for Coon Cheese revealed

Read more

Real digital transformation requires reshaping the way the business create value for customers. Achieving this requires that organization...

ravi H

10 lessons Telstra has learnt through its T22 transformation

Read more

thanks

Lillian Juliet

How Winedirect has lifted customer recency, frequency and value with a digital overhaul

Read more

Having an effective Point of Sale system implemented in your retail store can streamline the transactions and data management activities....

Sheetal Kamble

​Jurlique’s move to mobile POS set to enhance customer experience

Read more

I too am regularly surprised at how little care a large swathe of consumers take over the sharing and use of their personal data. As a m...

Catherine Stenson

Have customers really changed? - Marketing edge - CMO Australia

Read more

Blog Posts

Brand storytelling lessons from Singapore’s iconic Fullerton hotel

In early 2020, I had the pleasure of staying at the newly opened Fullerton Hotel in Sydney. It was on this trip I first became aware of the Fullerton’s commitment to brand storytelling.

Gabrielle Dolan

Business storytelling leader

You’re doing it wrong: Emotion doesn’t mean emotional

If you’ve been around advertising long enough, you’ve probably seen (or written) a slide which says: “They won’t remember what you say, they’ll remember how you made them feel.” But it’s wrong. Our understanding of how emotion is used in advertising has been ill informed and poorly applied.

Zac Martin

Senior planner, Ogilvy Melbourne

Why does brand execution often kill creativity?

The launch of a new brand, or indeed a rebrand, is a transformation to be greeted with fanfare. So why is it that once the brand has launched, the brand execution phase can also be the moment at which you kill its creativity?

Rich Curtis

CEO, FutureBrand A/NZ

Sign in