//Marketers Respond to Gartner Findings: Martech Expenses Now Exceed Staff Costs
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Marketers Respond to Gartner Findings: Martech Expenses Now Exceed Staff Costs

 

 

Marketers are now spending more on marketing technology than on internal salaries.

This is a key finding of the recent Gartner. CMO Spend Survey 2018-2019 conducted among senior marketing executives based in the United Kingdom and the United States.

Marketers spent 29% of their budget (not counting media spending and agency fees) last year, while allocating 24% of their resources to staff paying. In 2017, the percentages were 22% and 27% respectively.

"No surprise"

The main beneficiaries of these expenditures were the tools of digital analysis, content management and email marketing. Gartner has called the "largest investment sector in terms of resources and marketing programs." The top three marketing capabilities cited in the survey were marketing / customer analytics, the acquisition and use of marketing technologies and the customer experience.

"Marketers focus on developing their analytical and martech skills, because it's the muscle groups that need the most development," said Scott Brinker vice President of HubSpot and MarTech Conference Program Manager, about the report. But, he added, the goal of this development is to bring us closer to the goals of acquisition and customer loyalty.

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"It's not a surprise," said Lynne Capozzi, General Manager of Acquia, by e-mail. She said a study of her company, which provides services to companies using Drupal open source content management software, found that 62% of global marketers plan to spend more on martech over the next 12 years. next months, in part to simplify the current complexity of login systems and data to deliver a good customer experience.

A frightening race to understand the data & # 39;

Phil Ahad, senior vice president, strategy and products at online survey provider Toluna, said that companies – such as those favored Gartner Report – have "much more leeway to reduce the salary costs of staff through marketing technology that small businesses, which are thinner.

"I'm not at all surprised" to discover Gartner, David Frankel, managing partner of Slingstone Group sales and marketing consultant, told me he is the former chief financial officer of the financial data company Edgar Online and the alternative loan company Tapify.

D & # 39; after his personal experience and market observation, he said it was clear that there was a "fierce race to understand the data around the customer's experience."

In 2011 and 2012, Marketers have started to talk about Big Data, but the efforts have focused mainly on its exploitation and structuring.

"People did not understand this data well," he added, noting that since then, we have begun to focus on using data to improve the data. customer experience by targeting users with messages, better offers, and streamlined processes.

"A catch-up game"

Marketers now understand better than anyone else. they need analysis and implementation tools to improve their experience by improving the understanding of customer data,

"I This is a catch-up game" based on data, he added.

Frankel stated that he did not think that this increase in spending on martech would decrease in the next year. "We are witnessing a new status quo," he said, all the more so as AI needs a growing infrastructure to capture, clean, manage and deliver quality data, and that SaaS services involve permanent subscriptions.

Bayer VP of Media Strategy and Platforms Josh Palau agreed that the focus on spending martech "is probably the way forward for the industry," largely because many marketing services are purchased in the cloud via software service offerings.

Previously, he had reminded that the obtaining of a subscription to the social care service had added a substantial capacity requiring very little commitment in terms of internal staff. Palau said that "maybe two people" were involved in the use of the subscription to the brand.

Much of his internal staff is currently focused on strategy and management, he noted, as cloud services are used to meet needs. that once, it would have required a significant internal staff. Although Bayer is striving to integrate all digital media in-house, he said, cloud-based external services will still be needed.

"It's a lot easier to change platforms than to change personnel," he remarked.

This story was first published on MarTech Today. For more information on marketing technology, click here.

About the Author

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Barry Levine covers the marketing technology of Third Door Media. Previously, he covered this space as a senior editor for VentureBeat, and he wrote on these technical topics, among others, for publications such as CMSWire and NewsFactor. He founded and managed the website / unit of PBS Thirteen / WNET; worked as a Senior Producer / Writer Online for Viacom; created a successful interactive game, PLAY IT BY EAR: The first CD game; founded and directed an independent film, CENTER SCREEN, based at Harvard and M.I.T .; and served for five years as a consultant to the M.I.T. Media Lab. You can find it on LinkedIn and Twitter on xBarryLevine.