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

Does your brand need a personality review?

There are five tell-tale signs your brand needs to take a long hard look at itself.

Charlie Rose

Senior Strategy Consultant, Principals

How to create profitable pricing

How do we price goods and services? As business leaders, we have asked ourselves this question since the history of trading.

Lee Naylor

Managing partner, The Leading Edge

Sport and sponsorship: The value of event sponsorship

Australia’s cricketers captured the nation’s attention during their recent run to the semi-final of the ICC Men’s World Cup. While the tournament ultimately ended in defeat, for over a month it provoked a sense of belonging, hope and empowerment for millions of people across Australia. Cricket, and sport in general, has a near-unique ability to empower individuals, irrelevant of their background, demographic or nationality.

Nikhil Arora

Vice-president and managing director, GoDaddy India

I should check these guidelines. I think it's important for me. Thanks for the info!

Juana Morales

IAB releases social media comment moderation guidelines

Read more

I didn't know about that. Thanks!

Jamison Herrmann

Twitter 'recap' helps you catch up with missed tweets

Read more

😂😂😂😂😂😂😂😂

Max Polding

What it takes to turnaround an iconic Australian brand

Read more

I spend a lot of time in my professional life as a provider of marketing solutions trying to persuade customers that CX, UX, UI and Custo...

sketharaman

Gartner VP: Why CMOs and CIOs must band together to make CX a discipline

Read more

I live the best deals at LA Police Gear.

Tyrus Rechs

6 Ways to ramp up Social Media to Your Web Design

Read more

Latest Podcast

More podcasts

Sign in