A big thank you to Brandwatch and Spredfast for putting on an amazing get together at the Poolside Café in Sydney!
By Adam Fraser
Scott Brinker, aka chiefmartec.com, has released his annual infographic into the marketing technology landscape (the one you see at almost every marketing conference on the planet with the tiny logos jammed in, that tends to get a “that’s insane” reaction).
Incredibly, it keeps getting larger and more complex. From 2,000 tools in 2015 to 3,500 in 2016, up to an amazing 5000+ in 2017 when the “Martech5000” was born. However, 2018 has gone up a notch again with an incredible 6,826 tools from 6,242 unique vendors. Wow!
From social media to newsletter marketing, e-commerce to CRM, all the subsections continue to grow. As one stark data point – the size of the 2018 landscape is equivalent to adding all of the martech landscapes assembled from 2011 to 2016 together.
I was lucky enough to have Scott as my very first podcast guest back in April 2015. Even back then – in a world of “only” 2,000 tools – we discussed the complexity of the market and whether consolidation was imminent. We discussed this again on the podcast in 2017 as we hit 5,000+ tools, exploring why consolidation was still seemingly not on the horizon.
It should be noted that the raw landscape doesn’t accurately reflect the sizes of the different martech companies. If they were to be organised by valuation, it would illustrate a classic long tail; a handful of multi-billion dollar giants in the “head,” quickly tapering out across a very long “tail” of thousands of smaller firms.
There are a number of drivers of this breadth and complexity in the marketing technology landscape – including (at a high level) low barriers to entry in a cloud-driven world, media fragmentation in a post-internet world, the rapidly changing consumer buyer journey, constant technology innovation and increasing private equity interest (2017 was a record year with over $14 billion invested in the sector).
The landscape is divided into subcategories. The largest category — the category with the greatest number of vendors — this year was Sales Automation, Enablement & Intelligence, with 490 solutions. Salestech is a big thing!
One final (also mindblowing) data point – the average enterprise uses over 1,000 cloud services, led by 91 in the marketing function. The world of the API – and stitching together best of breed solutions – is alive and well.
If you are feeling utterly overwhelmed by this landscape and what it means for marketing and IT professionals please know you are not alone! The basic premise remains – strategy first, technology second. Focus on your business objectives and your marketing strategy and execution. Then, and only then, start to think about how technology can enable and potentially turbocharge your business processes.
People, process and technology. A three-legged stool. In almost all cases the technology decision should come last not first.
By Adam Fraser.
As founder of EchoJunction, a business operating at the intersection of the worlds of the CMO and CIO, I live and breathe the marketing technology landscape and a world of 5,000+ marketing technology vendors (the “Martech5000”).
EchoJunction works with enterprises on their social media strategy from a technology roadmap perspective and partners with global social media software specialist providers such as Brandwatch (social listening), Lithium (social service and community), Hootsuite and Spredfast (end to end enterprise social media platforms) to fulfil defined business requirements.
Hence I had more than a passing interest in two exciting announcements from Brandwatch this week – both as a local partner and analyst of the sector.
Firstly Brandwatch has acquired Buzz Sumo, the leading content marketing and influencer identification platform on the market. Two market leaders in synergistic market segments coming together is a powerful play, and it will be interesting to see if this merger is symptomatic of a broader consolidation in the crowded marketing technology landscape, something I have previously discussed with author of the MarTech landscape ideographic Scott Brinker on the EchoJunction podcast in both 2015 and 2017.
Secondly, Brandwatch announced on off the shelf integration between their Vizia large screen command centre product, and Hootsuite Insights, one of the most powerful analytics capabilities on the market. We now live in the world of the API where you need to ‘play nicely’ with other software partners – who can also potentially be competitors at times. No one tool can do everything, so best of breed specialists working together to stitch together end to end solutions via API connectors is a reality of today’s marketing technology sector. One of the reasons marketing and IT are working in a closer alliance.
Smart forward-thinking software companies embrace rather than resist this – one of the reasons I love the Brandwatch Vizia platform, which can display business insights not just from Brandwatch’s own social insights product, but also from a multitude of third party sources such as Google Analytics, CRM, Hootsuite and any other data feed.
I love the fast-moving, dynamic nature of the social media and marketing technology sectors, and working with enterprises and partners embracing these rapidly changing dynamics. Certainly never a dull moment!
By Adam Fraser
Yep, that one – the one you see at every marketing conference – packed with tiny logos of marketing technology vendors, which has grown from approximately 2,000 vendors in 2015, to 3,500 in 2016 and over 5,000 in 2017. The marketing technology landscape is broad, deep and complex, and simply refuses to consolidate.
With EchoJunction’s business operating at the intersection of marketing and IT, it’s clearly a world I live and breathe, and accordingly, it was appropriate that my very first guest on the EchoJunction podcast (almost 130 episodes ago), was the landscape author Scott Brinker. Scott has since been on the podcast two further times, latterly talking about the 2017 landscape, and a world of 5,000+ marketing technology vendors (the “Martech5000”).
Given my interest in this area, it was fascinating to see a further evolution of this thinking from Jeremy Epstein, one of the world’s leading experts in what Blockchain means for marketers, with his recent release of the Blockchain Marketing Technology Landscape.
Blockchain technology is in its relative infancy, but many see this as an uber trend (alongside Virtual Reality, AI and the Internet of Things) which will have a profound impact on not just marketing but society more broadly. Bitcoin was just the start.
Whilst the Blockchain marketing technology landscape is relatively sparse compared to its crowded martech landscape cousin, clearly, Jeremy is expecting to see profound growth in blockchain marketing technology platform offerings over the coming years. In 5 years time will the Blockchain version also contain thousands of tiny logos?
Interesting to see the display and programmatic as the most crowded area to date for Blockchain marketing tech, a segment with obvious operating inefficiencies and middlemen who can potentially be disintermediated.
In terms of technology trends, there is a lot for marketers to absorb at present, but Blockchain is a topic worthy of developing at least a basic understanding given its relative potential importance. For an intro – Jeremy’s high-quality ebook (and accompanying EchoJunction podcast discussion) represent a good starting point.
By Adam Fraser
The “Gartner CMO Spend Survey 2016-2017” surveyed 387 organisations about their actual marketing spend in 2016 and planned spend for 2017. The companies surveyed were at the enterprise level (>US$250m rev per year) across USA and UK.
The key findings were:
- Marketing budgets continued their steady increase in 2016, representing an average of 12% of company revenue from 11% in the prior period; note this is the third year in a row this ratio has increased
- CMO martech spending is on track to exceed the CIO technology spend in 2017 as marketing looks after a growing number of customer touch points.
- Twenty-four percent of marketing leaders expect their 2017 digital advertising budget to increase significantly
- Marketing leaders who own or share P&L responsibility get budgets that are 20% higher, on average, than those without plans for a P&L
The survey showed larger companies (those with revenue of $5bn or more) spend a higher proportion on marketing (13% of revenue) than their smaller contemporaries (10% of revenue for companies with revenue of $250-500m).
The prediction that CMOs would spend more on IT than CIOs by 2017 was originally made by Gartner a number of years ago. This incredible metric does seem on track to occur based on this survey, emphasising again how important technology and data analytics have become to the marketing profession. On average companies will spend 27% of their marketing budget on technology; aligning the objectives of the CMO and CIO has never been more important.
As with last year, Digital Commerce investments are a high priority with CMOs as a means to achieve growth objectives, particularly in FMCG sectors, with at least 8% of the marketing budget allocated to this area. The top three categories for share of budget were website, digital commerce and digital advertising.
The increase in spend on digital advertising is being driven by
- A continuing and consistent shift of offline media spending to digital channels.
- Decline of organic social in favor of paid social.
- The rising importance of video, which is more expensive than other digital techniques for both media and production
The changing nature of org structures is reflected in the survey, with Sales, IT and Customer Experience Functions now reporting into Marketing in 30% or more companies.
This is a worthwhile report to review, reflecting some important industry trends.
‘My Feed’ is ABC RN’s weekly look at the curious and juicy things happening online and on 1st July Patricia Karvelas spoke to Adam Fraser.
Adam spoke to RN Drive about Facebook reportedly finally paying (some) people to post content, the top 100 brands and the mushrooming world of ‘martech’.
By Adam Fraser
A big week for transactions in the MarTech world with SalesForce acquiring Demandware for US$2.8bn, Twitter investing in audio streaming service SoundCloud for US$70m and the big one – Microsoft swooping in on LinkedIn in a deal worth a cool US$26bn, a $US9bn premium on the value based on the stock price prior to the announcement.
LinkedIn has been under pressure from the stock market since its disappointing Q4 2015 results when its share price declined an incredible 44% in a single day. The deal came somewhat out of the blue and has puzzled a number of analysts.
At a price of 7.2 times revenue it is not cheap on any measure. LinkedIn remained loss making notwithstanding its preferred measure of profitability being to add back stock based employee compensation (at which point it became profitable).
Clearly therefore this deal is all about strategic synergy. As well as hoping LinkedIn (with its 400m plus members and exceptionally strong position in B2B) will mature into a profitable stand alone business, the key factor is the way it can help the remainder of the Microsoft product stable.
The most obvious product would seem to be Microsoft’s CRM product (Dynamics). A massive challenge for any CRM system is maintaining accurate contact information – most professionals keep LinkedIn up to date, so by integrating CRM with LinkedIn this becomes an important differentiator against CRM competitors (primarily Salesforce and SAP). Deep and accurate data on this scale is valuable. Other workflow related synergies should also emerge in managing appointments and sales opportunity status – with integration to Microsoft Office also in play here.
There are many other potential synergies, including LinkedIn’s online training business (it recently acquired Lynda.com) integrating with a number of Microsoft’s productivity apps. Jeff Weiner, LinkedIn CEO outlined many ways the companies could work together in his letter to all LinkedIn staff. In particular he noted:
“Think about things like LinkedIn’s graph interwoven throughout Outlook, Calendar, Active Directory, Office, Windows, Skype, Dynamics, Cortana, Bing and more”
For now LinkedIn remains a stand alone service, so don’t expect to see too many changes to user experience in the short term.
In the medium and longer term the potential synergies are certainly there; but the price tag is not cheap and as Microsoft discovered when it bought Nokia – $7.2bn price followed by a massive write down within 18 months – potential synergies don’t always come to financial fruition.
Based on this transaction I would expect to see increased takeover talk around Twitter and Pinterest from here. Interesting and dynamic times as always in the martech world.
By Adam Fraser
The annual marketing technology landscape infographic from Scott Brinker (aka ChiefMartec) has been released.
When I interviewed Scott for Episode Number 1 of the EchoJunction podcast we discussed the 2015 landscape (circa 2,000 vendors) and hypothesised that some form of consolidation must be inevitable.
Alas the size of the market has actually expanded significantly – now hitting approximately 3,500 vendors with 3,874 solutions (some vendors have more than one product which features).
So much complexity and choice for marketers to deal with. With waves of disruption impacting across the landscape, it’s an extremely dynamic and rapidly changing field.
In the 2016 landscape, the largest categories by number of solutions are:
1. Sales automation, enablement and intelligence (220)
2. Social media marketing and monitoring (186)
3. Display and pragmatic advertising (180)
4. Marketing automation and campaign/lead management (161)
5. Content marketing (160)
There are 49 categories structured around 6 marketing technology capability clusters:
1. Advertising and promotion
2. Content and experience
3. Social and relationships
4. Commerce and sales
The cluster representation rather than the “stack” presentation in previous years reflects Scott’s updated thinking that rather than a single vendor owning the end to end stack, companies are more likely to stitch together best of breed solutions from specialist vendors across the marketing value chain.