Are CMOs Wasting Their MarTech Investments?
MarTech is booming and VentureBeat reported that it received $134 billion as funding in the past five years, employing 300,000 people. 30 MarTech firms are believed to be valued at more than $1 Billion. The industry is going to be more popular with new players as new tools keep on emerging in the world of marketing. It is estimated that in this year alone marketing departments will spend an amount north of $25 billion to boost their technology and according to advisory firm IDC, the annual compound growth rate for marketing technology till 2018 will be 12.4%.
The numbers that we are seeing here are raising eyebrows everywhere, but what should the CMOs expect right now? Will the marketplace get more crowded? What new tools will emerge? Is their investment safe and sound?
Are CMOs wasting their MarTech investment?
Why might it be a waste…?
Marketing technology around the world is improving day by day but sometimes they are forgotten in a few days, underused and unappreciated. The reason why this happens is because the organizations that end up purchasing them do not have the necessary marketing personnel talented enough to tap into the technology and realize its true potential.
With today’s sophisticated level of marketing technology, some functions require specialists, and soon every marketing function will become so evolved and specialized that it will require nothing short of a specialist to realize its true potential.
If you are acquiring MarTech but not investing in talent that can take care of it properly, you are going to set yourself up to be disappointed. The ROI will be nothing short of bad if you don’t invest in specialists.
Let us take a closer look at the reasons why this is happening and what can be done to make the most out of the situation…
Budget: Budget is one of the most essential factors that limit the amount a CMO can spend on new technology and talent that can properly harness it. Sometimes the resources aren’t enough to support such technology. What you need are talented marketers who will be able to provide value to every tech that you have, however limiting it might be and come up with results. There is no use for expensive tech that cannot be used. Before investing in new marketing tech, bring in top-class marketers, tech-savvy people who can unlock the true potential of all that you can offer. Once you have that, you can buy relevant tech because your ROI is assured.
Leadership: Most marketers have bits and pieces of marketing technology not connected to each other. It is easy to invest in advanced marketing technology but it takes more than an investment to fit the technology in your marketing strategy. No technology will help you achieve your company’s marketing goals unless and until it is integrated smoothly into the growth plan. You have to find marketers who can think about the bigger picture and is tech-savvy at the same time. Some businesses are fortunate to have such kind of leadership on-board. But for the ones who don’t, they can easily recruit new leadership or rope in MarTech consultants to help them optimize their investments accordingly.
Adoption: You have to build a solid workforce that will not only embrace your MarTech strategy but also manage the day-to-day execution. The exact skills that your workforce needs depends on the tech you are adding and what your organization’s requirements are. If you are lucky you will be able to train your present marketing team, but often you need to bring in specialists because of the technology involved. You need cutting-edge operators for cutting-edge technology. If you aim to implement MarTech, you need foresight more than anything else.
Integrated Systems: CMOs often invest in costly marketing technologies hoping the technology will be able to help them execute and monitor campaigns, analyze and report results. It’s true that there are robust marketing automation systems capable of managing all facets of digital marketing but its also true that sometimes standalone tools are more powerful and capable. A smart CMO will choose the best of these tools and integrate all to create a powerful marketing machine. This is enough ammunition for the marketing team to go out and succeed.
MarTech is powerful and extremely modern. If you want to implement that in your organization you need to have the right team along with your investment, or else it will be waste of MarTech investments and you will never be able to realize its true potential.