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

Conversations over a cuppa with CMO: Microsoft's Pip Arthur

​In this latest episode of our conversations over a cuppa with CMO, we catch up with the delightful Pip Arthur, Microsoft Australia's chief marketing officer and communications director, to talk about thinking differently, delivering on B2B connection in the crisis, brand purpose and marketing transformation.

More Videos

JP54,D2, D6, JetA1 EN590Dear Buyer/ Buyer mandate,We currently have Available FOB Rotterdam/Houston for JP54,D2, D6,JetA1 with good and w...

Collins Johnson

Oath to fully acquire Yahoo7 from Seven West Media

Read more

Great content and well explained. Everything you need to know about Digital Design, this article has got you covered. You may also check ...

Ryota Miyagi

Why the art of human-centred design has become a vital CX tool

Read more

Interested in virtual events? If you are looking for an amazing virtual booth, this is definitely worth checking https://virtualbooth.ad...

Cecille Pabon

Report: Covid effect sees digital events on the rise long-term

Read more

Thank you so much for sharing such an informative article. It’s really impressive.Click Here & Create Status and share with family

Sanwataram

Predictions: 14 digital marketing predictions for 2021

Read more

Nice!https://www.live-radio-onli...

OmiljeniRadio RadioStanice Uzi

Google+ and Blogger cozy up with new comment system

Read more

Blog Posts

A Brand for social justice

In 2020, brands did something they’d never done before: They spoke up about race.

Dipanjan Chatterjee and Xiaofeng Wang

VP and principal analyst and senior analyst, Forrester

Determining our Humanity

‘Business as unusual’ is a term my organisation has adopted to describe the professional aftermath of COVID-19 and the rest of the tragic events this year. Social distancing, perspex screens at counters and masks in all manner of situations have introduced us to a world we were never familiar with. But, as we keep being reminded, this is the new normal. This is the world we created. Yet we also have the opportunity to create something else.

Katja Forbes

Managing director of Designit, Australia and New Zealand

Should your business go back to the future?

In times of uncertainty, people gravitate towards the familiar. How can businesses capitalise on this to overcome the recessionary conditions brought on by COVID? Craig Flanders explains.

Craig Flanders

CEO, Spinach

Sign in