Marketing technology grabs 29 percent of 2018 CMO budgets, survey says
Martech is now the single most significant area of investment for marketing resources and programs, according to the latest Gartner CMO Spend Survey:
Marketing technology increasingly accounts for a significant share of marketing budgets, and 2018 was no different. According to Gartner’s CMO survey, martech ate up nearly a third of marketing budgets, making marketing technology the largest area of investment for marketing resources and programs. And, according to the survey, it’s expected to grow with continued investments in 2019.
According to the survey, CMOs spent an average of 25 percent of their martech budget on three channels: search (11.2 percent), email (5.9 percent), and website (7.6 percent). Marketing and customer analytics platforms accounted for 8.9 percent, indicating the need for measurement tools – and processes – to continue supporting these programs.
Why you should care
As martech investments increase, marketers should expect increased visibility into digital marketing performance. Direct channel attribution should be a top priority for digital marketers and organizations looking to innovate and advance their marketing programs.
Other key findings
- Marketing expense budgets leveled off in 2018, remaining steady at an average of 11.2 percent of company revenue.
- Marketing technology now accounts for almost a third of marketing’s budget, while in-house labor investment loses shares.
- One in every $6 spent by CMOs is invested in innovation, despite doubts in the skills and capabilities available to support these programs.
- CMOs struggle to align marketing metrics with business priorities, favoring awareness as their No. 1 strategic measure instead of customer value and return on investment (ROI).
Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.