U.S. marketing technology spending is expected to increase 14.3% this year — surpassing $20 billion, according to a new report.
While this is a substantial increase, it is down from last year’s 20.9% growth, said Insider Intelligence. Last year companies spent to keep up with the pandemic-driven shift to online by customers and businesses. This followed huge growth between 2018 and 2020 when martech spending nearly doubled in size.
Martech spending is still ahead of spending on marketing overall. Marketing budgets have climbed to 9.5% of total company revenue in 2022, an increase from 6.4% in 2021, according to Gartner. While marketing budgets are increasing this year, they still lag pre-pandemic spending levels.
The marketing resource budget mix is largely unchanged this year, the study found, with martech accounting for 25.4% share of resource budgets, down from 26.6% in 2021.
Why we care. If this is a slowdown in comparison with the last few years, it still shows a willingness to spend even in an uncertain economy. And $20 billion is quite a milestone.
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About The Author
Constantine von Hoffman is managing editor of MarTech. A veteran journalist, Con has covered business, finance, marketing and tech for CBSNews.com, Brandweek, CMO, and Inc. He has been city editor of the Boston Herald, news producer at NPR, and has written for Harvard Business Review, Boston Magazine, Sierra, and many other publications. He has also been a professional stand-up comedian, given talks at anime and gaming conventions on everything from My Neighbor Totoro to the history of dice and boardgames, and is author of the magical realist novel John Henry the Revelator. He lives in Boston with his wife, Jennifer, and either too many or too few dogs.
This four-part series presents a framework that describes the roles and responsibilities of marketing operations leaders. This part discusses MOps leaders as psychologists, in addition to their roles as modernizers (see part 1) and orchestrators (see part 2).
Exposure to marketing during my early educational journey was limited. With a heavy math/science background, I chose the “easy” path and majored in engineering. I struggled in advanced engineering classes but thrived in electives — communications, business, organizational behavior — which was a sign for my future in marketing.
Because of my engineering background, I was fortunate to get an opportunity to join GE Healthcare through its entry-level leadership development program. There I was exposed to magnetic resonance imaging (MRI).
MRIs had become go-to diagnostic devices and subsequently were used in neuroscience. I was fascinated by their eventual application in fMRI: Functional MRI. These extensions helped us understand the most consequential medical mystery: how (and why) people do what they do.
fMRI uses the same underlying technology as conventional MRI, but the scanner and a medical contrast agent are used to detect increased blood flow in response to a stimulus in what is commonly referenced as “hot spots.”
fMRI reveals which of the brain’s processes “light up” when a person experiences different sensations, e.g., exposure to different images in common studies. As a result, we now know what parts of the brain are involved in making decisions.
Traditional marketing campaigns and measurement left gaps in understanding how and why people choose to buy. We were dependent on aggregated data.
With digital channels, we gain first-hand insights into an individual’s response to a stimulus, i.e., content. Here’s where the comparison picks up:
We can observe nearly anything and everything that customers or prospects do digitally.
Most customers know that we can track (almost) everything that they do.
Because of that knowledge, customers expect contextual, value-based content, forcing marketing to provide more value in exchange for the permission to track.
Our goal as marketers is to make our customers and prospects “light up” with pleasure or satisfaction at each interaction. And, we now have the technology to track it. We are effectively reading minds — just as if it were an fMRI scan.
Here’s an overview of three of the primary psychology “tactics” that every marketer should know:
Priming is the attempt to trigger a subconscious reaction to stimuli that influences our conscious decisions. The most common application is in branding and first click-through impressions. If a customer continues their journey, then the use of aspirational product or service images in content are common priming approaches.
Social proof is perhaps the most common example, given the impact of word-of-mouth influence. It is commonly seen in product reviews and ratings. Content marketing often relies on case studies and customer testimonials to hear from “people like us.”
Anchoring refers to marketing’s role in pricing and discounting. Most decisions people make are relative to the initial set of information they have received.
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MOps leaders manage the mind-reading stack
MOps leaders are modernizers that now manage the mind-reading martech stack. We then lead the orchestration efforts to analyze the response (the “scan” data) and “prescribe” the next steps of the campaign.
Two catalysts spawned the emergence for martech applications:
New channels that delivered stimulus (content) and collected responses: search, social media, retail commerce channels, etc.
Tools that organize and manage all of that response data, from foundational CRM platforms to marketing analytics and data enrichment.
These developments led to the new psychological skills that have become essential to the role of MOps leaders.
Processing and interpreting intent data is an example. ZoomInfo illustrates how B2B marketers are accessing this capability. The company now provides buying signals to marketers based on their customers’ behaviors, in addition to the basic contact information that was the origin of its business.
Intent data is already in widespread use. Six in 10 companies responding to a recent survey said they had or planned in the next year to implement intent measurement data solutions.
The top challenges for effective intent data utilization fit squarely in the role/responsibilities of MOps leaders include:
These trends support the conclusion of the first three parts of this series — that MOps leaders should aspire to be:
Psychologists who elicit responses (i.e., “light up” the brains) of customers and prospects and interpret those signals for the business.
Modernizers who adopt the technology that enables the activation of those signals.
Orchestrators who are cross-functional project managers and business partners with IT, legal and compliance.
Next time, I’ll complete the framework with a discussion of how the role of MOps leaders includes being a scientist, constantly testing and evaluating marketing efforts with teams of analytics specialists and data scientists.
Opinions expressed in this article are those of the guest author and not necessarily MarTech. Staff authors are listed here.
About The Author
Milt is currently Director of Customer Experience at MSI Data, an industry-leading cloud software company that focuses on the value and productivity that customers can drive from adopting MSI’s service management solutions.
With nearly 30 years of leadership experience, Milt has focused on aligning service, marketing, sales, and IT processes around the customer journey. Milt started his career with GE, and led cross-functional initiatives in field service, software deployment, marketing, and digital transformation.
Following his time at GE, Milt led marketing operations at Connecture and HSA Bank, and he has always enjoyed being labeled one of the early digital marketing technologists. He has a BS in Electrical Engineering from UW Madison, and an MBA from Kellogg School of Management.
In addition to his corporate leadership roles, Milt has been focused on contributing back to the marketing and regional community where he lives. He serves on multiple boards and is also an adjunct instructor for UW-Madison’s Digital Marketing Bootcamp. He also supports strategic clients through his advisory group, Mission MarTech LLC.