New research assessing the current and future state of the martech industry, has found that the size of the martech industry for the combined UK and US markets is estimated at $34.3 billion.
The research also reveals that the UK and US martech market is growing exponentially as demand for new tools continues to rise.
Commenting on the survey, Damian Ryan, Partner, Moore Stephens, said: “We carried out this research to better understand the size of the market and the drivers behind its growth. It is only recently that martech has been given its own name, having previously been engulfed by the adtech umbrella.”
Set for growth
The survey released today by Moore Stephens, a top-ten global accountancy firm, and WARC, the global marketing intelligence service, questioned more than 500 UK and North American brands and agencies, and confirms a burgeoning martech industry.
The results show that, on average, brands are spending 16 per cent of their marketing budget on marketing technology or martech.
Marketers are most likely to be using a martech tool for email, with 85 per cent currently doing so. The majority also use social media and CRM tools, whereas experience optimisation and collaboration tools are currently used by approximately one-third (37 per cent).
However, both of the latter are set for a significant rise; the survey reveals an additional quarter will invest in experience optimisation and collaboration tools in the next year.
“The growth of the market shouldn’t come as a surprise to brands, agencies or anyone in the media industry. We are entering a new chapter of business, one that will be governed by trust and economic common sense,” Ryan stated.
Investment demand driven by dissatisfaction
Half (50 per cent) of those polled state they don’t have the tools they need. When analysing by agency vs brand, six in ten agencies (58 per cent) stated they don’t believe their clients have what they need and don’t fully utilise the martech tools they do have.
Reflecting this, many businesses are looking to increase the investment in marketing technology: nearly half (46 per cent) of the UK businesses and more than one in three (38 per cent) in the US are looking to increase their investment in the next 12 months. Only seven per cent of US businesses and four per cent of UK firms are looking to decrease.
When considering what holds marketers back from implementing martech tools, limited budget is unsurprisingly the biggest barrier, with 42 per cent stating so.
For marketing and communications agencies, 57 per cent said that the main barrier to investment is a lack of understanding of the marketing technology available. This is compared to just a quarter (25 per cent) of brands polled.
“While the rise of digital has been utterly spectacular, it has brought about widespread mistrust in the marketplace and channels that underline its success. We’ve seen the phenomenon that is fake news, as well as adblocking and a general worrying absence of transparency,” Ryan said.
“These are just some of the drivers leading organisations to invest in technologies to provide a greater sense of control. Martech is growing and we see it as the industry to watch for the foreseeable future for investment and product innovation alike,” he added.
Meanwhile, Amy Rodgers, Research Editor, WARC, said: “The marketing technology market has grown at a phenomenal rate over the past few years, as marketers are required to do more, at a faster pace, than ever before. Tools that can assist or automate parts of this job are in high demand, especially as the evidence for their return on investment grows. This research indicates that martech use in the UK and US is set to grow by ten per cent over the next year, a strong indication of the strength of a market that is continually consolidating and diversifying.”