Watch On-Demand: The State of Martech for Agencies & Martech Solution Providers
In 2024, marketing technology (martech) is integrated into virtually all aspects of marketing, making it essential in shaping marketing strategies and operations.
Rapid changes in technology and customer behaviour has left gaps in skills and knowledge which organisations are addressing through training and upskilling.
It is also an area where agencies can drive growth, by providing support for marketing teams in areas such as martech selection, integration, improving data capabilities, and forming strategies around the use of AI.
For this reason, we’ve seen agencies such as Publicis and WPP increasingly moving into data and technology, through acquisitions and development of internal martech academies.
For agencies and consultancies looking to grow in 2024, it’s imperative to be aware of emerging trends to sustain competitiveness,, and meet evolving market and client demands.
This webinar, featuring Conor McKenna, Partner at LUMA, and Carlo Doughty, CEO & Founder at LXA outlines key trends affecting the martech landscape, the challenges for CMOs and marketing teams, and how agencies are in a position to provide support and grow in 2024.
Key themes in the 2024 martech ecosystem
Economy and tech
The martech sector, valued at $669.3 billion in 2023, continues to expand amidst some economic uncertainties and technological advancements. Factors such as geopolitical tensions, data privacy legislation, and the transformative impact of artificial intelligence (AI) will help to shape the industry's trajectory.
Tech giants vs the rest
The landscape is marked by a division between the big tech players such as Microsoft, Apple, Google, Meta, Adobe, and Salesforce, and the rest.
The big tech platforms have demonstrated resilience and robust performance, attributed to efficiencies, AI capabilities, and adeptness in navigating privacy and antitrust challenges.
Meanwhile, the rest of the martech ecosystem has had to deal with profitability pressures, navigating reduced venture capital availability, and contending with antitrust constraints that limit M&A activities. Despite these challenges, the underlying drivers of martech—digital ad spend, ecommerce, and software investments—remain strong, with continued growth anticipated.
Data and identity
The evolving data privacy landscape, exemplified by regulations like GDPR and CCPA, compels marketers to prioritise legal compliance in data usage.
The shift towards first-party data emphasizes the importance of trustworthy data sources and the need for innovative targeting solutions in a post-third-party cookie era.
Digital commerce and omnichannel
Growth in digital commerce, fuelled by mobile and social commerce, and the pursuit of omnichannel customer experiences, highlight the expanding roles of retail media and conversational commerce. Martech vendors are increasingly focusing on covering a broader spectrum of customer touchpoints.
Martech Stack Trends
A preference for a ‘best of breed’ approach is evident among CMOs, with 72% favouring this strategy over consolidated martech suites. This trend underscores the emphasis on composability and integrating best-of-breed solutions for enhanced flexibility and adaptability.
The rise of AI
AI's significant role in driving innovation and efficiency in martech cannot be overstated. With substantial investments from tech giants and startups, AI is poised to revolutionise marketing strategies and tools, offering new capabilities in content generation, predictive analytics, and personalisation.
The role of agencies in the martech landscape
Agencies play a pivotal role in navigating the martech landscape, offering expertise to bridge skills and knowledge gaps for clients. The development of in-house martech capabilities, coupled with strategic acquisitions, positions agencies as indispensable partners in harnessing martech for effective marketing strategies.
As martech continues to evolve, agencies equipped with the latest knowledge, skills, and tools are better positioned to assist CMOs in leveraging technology for marketing success. With a focus on training, upskilling, and embracing emerging trends, agencies can contribute significantly to the growth and transformation of the martech ecosystem in 2024 and beyond.