Gartner: How CMOs will spend more on technology than CIOs in 2017

Analyst firm looks at the state of martech deployment and where the dollars are being spent

Several years ago, Gartner gained notoriety for suggesting CMOs will be spending more than their IT counterparts on technology by 2017. Well, according to the research firm, that premise is set to come true, as marketers look to up spend on a host of capabilities across the martech stack.

In a research paper published in October, Gartner analysts reported marketing tech spending is on track to exceed CIO technology spend in 2017 as marketers increasingly gain responsibility for a number of customer touchpoints. The research firm noted CMO spending on technology in 2016 was 3.24 per cent of revenue in 2016, compared to the CIO’s tech budget of 3.4 per cent of revenue.

Marketing budgets were also found to be increasing for the third consecutive year, climbing to 12 per cent of company revenue, and one-quarter of marketing leaders surveyed expected their 2017 digital advertising budget to rise significantly.

In its latest report, Marketing Technology Survey 2016: How Marketers Use tech to Run, Grow and Transform Their Organisations, Gartner set out to discover how these dollars are being spent.

Across a survey of more than 200 US marketers, Gartner found basic capabilities are now in widespread use, such as Web analytics, Web content management and email marketing platforms. Just 20 per cent of marketers surveyed aren’t currently using these solutions, and about 60 per cent are fully deployed. Interestingly, email marketing platforms had the highest penetration rate in retail (83 per cent).

Intermediate capabilities reflected more specific variations around the marketing approach. As an example, Gartner highlighted digital marketing analytics, lead management and multi-channel campaign management platforms. Less than half of marketers are currently using this trio of solutions, but more than 70 per cent are committed to deployments.

Less prevalent are advanced capabilities, but they’re rapidly being adopted. This list includes multi-touch attribution (fully deployed by 21 per cent of respondents), dynamic creative optimisation (31 per cent), A/B testing (33 per cent), and tag management systems (33 per cent). In addition, nearly one-fifth of marketers have plans to roll out personalisation, customer data or mobile marketing analytics platforms in the next two years.

For the purpose of the report, Gartner looked at 29 types of martech across five major categories: Data and analytics solutions; Web operations solutions; content and customer experience solutions; advertising solutions; and direct marketing and marketing management solutions.

Gartner also found five vendors dominating the martech mix: Adobe, Oracle, Google, Salesforce and IBM. Combined, the five are supplying 36 per cent of the martech solutions in use, or 39 per cent of those deployed by enterprise marketers.

This doesn’t mean fragmentation or alternative solutions aren’t in the mix, however, and Gartner said more than 80 per cent of survey and customer insights technology deployments are being sourced from smaller vendors. Digital marketers are also often using multiple solutions per category. For instance, when it comes to marketing analytics, they’re averaging more than two platforms apiece.

The December Gartner report was based on a survey of 206 US marketers in September 2016, all of which had responsibility for making decisions or leading the selection of digital marketing technology strategies and activities and a mean annual revenue of US$5.2 billion.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

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

Blog Posts

Putting the ‘human element’ back in marketing

During the recent CMO Momentum conference, Paul Mitchell shared how marketing leaders can create cultures that deliver

Paul Mitchell

Managing director, The Human Enterprise

The rise and rise of voice search

In 1982, an AT&T employee by the name of Plotzke predicted the rise of voice: “In fact, it has been predicted that, by 1990, well over half the communications dollars spent by businesses will be for products and services that include voice technologies.

Michael Jenkins

Founder and director, Shout agency

Is design thinking the answer for the next generation of marketing?

The speed and pace of change will never be slower than we’re experiencing today. So in this era of unprecedented change, how can brands meet soaring consumer expectations, stay relevant and deliver differentiated and connected experiences?

Merryn Olifent

Senior consultant, G2 Innovation

https://uploads.disquscdn.c... [magic school bus] KID: where are we going today MS. FRIZZLE: the zoo KID: but last week we went to SPACE ...

Germain3161

Sephora Asia details its journey to data-driven decision making

Read more

DP Apparel bietet große Auswahl Audi Rennbekleidung in Deutschland zu den besten Angeboten. Das Geschäft bietet auch qualitativ hochwerti...

DP apparel

Audi Australia gets a new CMO

Read more

this is a really great news

Vincent Mouton

Mobile-first banking startup showcases fresh brand identity

Read more

Prozac is the brand name of fluoxetine, a prescription drug used to treat depression obsessive-compulsive disorder, and panic disorder. B...

jenson smith

CMO's top 8 martech stories for the week - 19 July 2018

Read more

I have been suffering from (HERPES) disease for the last two years and had constant pain, especially in my knees. During the first year, ...

Steven Kizzy

KPMG Australia appoints ex-Publicis leader as head of brand strategy

Read more

Latest Podcast

More podcasts

Sign in