Eric D. Brown, D.Sc.

Data Science | Entrepreneurship | ..and sometimes Photography

Tag: martech

Marketers – You have too many choices

I have a little secret for everyone in the world of marketing: You have too many choices.

There are way too many technology platforms in existence today. Too many ‘tools’ and too many products.  You have too many choices when it comes to getting your work done. Let’s take a quick second to glance at Scott Brinker’s MarTech 5000 landscape:

Marketing Technology Landscape Supergraphic (2018)

I’m sorry, but that’s just too many choices; especially when put in the hands of people that don’t really understand the long-term implications of multiple technology platforms.

Sure, there may be a formal selection process (in my experience, there’s not…or at least it isn’t followed) and  rarely is there a strategic vision when it comes to MarTech. There’s a bunch of tactical ‘needs’ for why a particular type of platform is needed/wanted and even a hand-wave toward ‘strategy’ but rarely is there an in-depth review of how a new platform will make things better for the marketing team and the organization as a whole and (ahem…most importantly) help reach the strategic objective of the organization.

Too many choices can be a real problem.  Need an ‘optimization’ platform for A/B testing (or other optimization issues)?  I’m sure you can find 30 or 40 vendors out there selling some version of a platform that will do what you need it to do.  Do you take the time to run a thorough selection process or do you find the first one that fits your ‘right now’ need and your budget and push ‘buy’?  Based on my experience, people do the latter and pick the first one they find that does what they need to do.  They find a solution to the problem they have today with very little to no thought put into how that platform will integrate into their broader organization’s ecosystem and/or whether the solution will solve their problem tomorrow.

Don’t get me wrong. Personally, I love the possibilities that these choices offer an organization, but only if proper governance is used when selecting and implementing these choices.  Based on my conversations with clients and marketing /  IT professionals over the last few years, there’s very little of this happening.

Over the last 3 years about half the projects I been asked to be a part of are projects to help simplify the  ecosystem within an organization.  I’ve seen companies with over 100 platforms being used within the marketing team with very few of those systems able to talk to each other — and the lives of the marketing team had become a living hell because they had too many systems, too little control of their data and too little insight into what they are able to do, how to do things and who to go to for help.

What’s the solution?

There’s not an ‘easy’ answer.

It will take hard work, focus and a real drive toward reducing the complexity within your marketing organization.  Think of it as putting your team on a diet – a MarTech diet.  When you ‘need’ (by the way – its rarely a ‘need’ and usually a ‘want’ in these cases) some new function that you just can’t live without – check your existing platforms before going out to buy some new tool. If you are absolutely sure you don’t have the functionality in your existing platforms, take a look at what you’re trying to do and think about if its an absolute need and not just a ‘want’.  More importantly, think about the long term vision / strategy of the organization – how does ‘MarTech Platform X’ get you there?  If you can’t easily answer the question, it might be best to try to find a way to do what you need to do with your existing ecosystem.

 

Will marketing continue to grow their share of the technology budget?

marketing technology budgetIf you are involved with marketing and/or technology in any large organization, you most likely are hearing a lot about marketing technology (MarTech) and the ‘explosion’ of MarTech people, technology, projects….and budgets. There are some folks out there who claim that within a few years, marketing will be spending more on IT than the CIO but many IT professionals I speak with just have a hard time accepting that marketing will ever drive more spend on tech than IT does/will.

My response to these folks is simple: It is already here.

Let’s take a second to think about some of the higher priority items for the IT group. According to the 2016 State of the CIO report from IDG, the top 3 priority items for CIO’s in the coming year are:

  • Complete a major enterprise project
  • Help reach a specific goal for corporate growth
  • Upgrade IT security

Those first two items are pretty broad and specific to each organization, but they could easily relate to MarTech projects. For the last item on IT security upgrades, the report says that about 12% of the IT budget will be spent on upgrading IT security (which seems low to me, but I’m not as close to security as I am to other parts of IT).

Another nice little nugget of knowledge from the 2016 State of the CIO report is the following:

57% of the total dollars invested in tech is now directly controlled by IT (and is expected to grow to 59% in the next 3 years).

One thing to notice with this particular stat – while the majority of budget is controlled by IT, there’s no real detail in the report on where or how that money is spent other than to say that 33% of marketing’s budget is currently set aside for technology.

All the numbers and data points mean very little without some context, which is what many IT professionals (and non-marketing people) lack.  The spend on MarTech five years ago was generally small. Marketing groups would spend money on content management systems, web analytics platforms and e-commerce systems but very few were investing money in large, enterprise-level systems. That has changed in most medium to large organizations. Today, marketing organizations are spending money are those enterprise systems because they now understand how important an integrated, enterprise platform can be for driving engagement and revenue.

Will marketing continue to grow their technology budget? I think so.  Will IT professionals continue to complain about that? Probably….but the majority will realize how important MarTech spend is to the future of the organization.

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