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!

Error: Please check your email address.
Show Comments

Blog Posts

Maintaining trust in a sceptical world: The power of brand trust

The faith people have in brands creates opportunity for those brands to become trusted advisors. In turn, this builds success by increasing the brand’s profile, letting it broaden its product offering and driving stronger customer loyalty.

Dan Ratner

managing director, uberbrand

When growth stalls: How to boost growth in large organisations

The push to start new businesses continues. In Q1 2017, the number of seed and angel deals increased by 1.4 per cent compared to Q1 2016.

Con Frantzeskos

CEO, Penso

Why we need diversity in marketing

​When we read articles about the need for increased diversity in marketing land, it is often through the lens of gender.

Jodie Sangster

CEO, ADMA

Educational activities is always a prestigious approaches in taking time for the smoother operational planning to implement in the long r...

ikuyo

Save the Children's marketing chief swaps not-for-profit for education

Read more

We all know that digital marketing in order to promote a brand, products and services is by the use of electronic media. The evolution of...

Helaina Berry

Predictions: 17 digital marketing trends for 2017

Read more

Interesting insight, well explained and the examples are just apt.Thanks for sharing!

FreshMindIdeas

The politics of branding - Brand science - CMO Australia

Read more

When the world that we live in floods with gigabytes of content every day, we have to learn to be selective about it. Such educational we...

Paulina Cameron

ADMA launches education program to tackle viewability, ad fraud and brand safety

Read more

Hi, i am an Aistralian ALK patient, been on xalkori dec 13 to oct 15 and achieved remission of disease, since been on Ceritinib until no...

gary packer

Pfizer Australia adopts AI-powered digital analyst tool for sales and marketing decision making

Read more

Latest Podcast

More podcasts

Sign in