What is Marketing Technology and Martech?

What is Marketing Technology and Martech?

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Marketing technology, or MarTech, refers to a collection of software and technologies that aid in the achievement of marketing goals and objectives. The marketing technology stack refers to a collection of marketing technologies used by a marketing team. MarTech has become a standard component of digital marketing initiatives, but it may also be used to improve marketing efforts across all channels.

What is the difference between marketing technology and advertising technology?

The terms “martech” and “adtech” are often used interchangeably. The distinction between these two initiatives is comparable to that between marketing and advertising. While martech refers to technology that aids in the creation, communication, and delivery of services, adtech is used only to influence buyer behavior through the promotion of offerings. Customer relationship management (CRM) software is an example of martech, whereas social ad platforms are an example of adtech.

Marketing Technology’s Importance

Gartner forecasted in 2012 that CMOs would spend more on technology than CIOs by 2017. While this allegation caused a lot of controversy at first, the difference in spending between the two parties has decreased dramatically over time. This is because technology is becoming increasingly crucial in marketing, particularly in terms of attribution and marketing spend allocation.

Marketers may be overwhelmed by the number of options available in the martech landscape, which is continuously changing. As a result, marketers must make certain that they are investing in marketing technology solutions that will help their company expand.

Marketing Technology's Importance
Marketing Technology’s Importance

Marketing Technology Essentials

Marketers must consider who they are marketing to when deciding which technologies to invest in. Is your company, for example, a business-to-business (B2B) or a business-to-consumer (B2C) marketer? Despite the fact that the industry in which your company operates has a significant impact on which martech will be most effective, all marketers should consider integrating the following technologies:

Attribution Marketing Software

“Half the money I spend on advertising is squandered; the trouble is I don’t know which half,” stated John Wanamaker (1838-1922), a well-known American merchant. For many businesses, this problem has not been solved after more than a century. Companies are missing out on chances due to outdated attribution models or failure to account for both physical and online successes. This problem can be solved by partnering with the correct marketing attribution software.

Marketing via email

Ryan Holiday highlights the value of email and developing direct ties with clients in his book Perennial Seller. Email is one of the best venues for reaching a target audience because it isn’t affected by algorithm updates or what’s hot. Consider the following: According to a recent survey, more than half of US respondents check their email more than ten times every day. Email is a powerful tool for firms to communicate with their customers.

System for Managing Content

This technology can run both your website and your blog. With 88 percent of customers researching things online before making a purchase, having a good website is a must. Because marketing and advertising customers will lead customers to your website, it serves as the foundation for the remainder of your digital strategy.

Customer Relationship Management Software

This section of the marketing technology stack should be focused on improving the customer’s interaction with your business, whether that means experimenting with different messaging or personalizing their experience. A/B testing software is included in this category.

Software for Customer Relationship Management

This is more popular for B2B lead generation firms, but these tools can help your company handle leads as well. CRMs can tell you where your leads are in the funnel and how profitable they are.

Marketing Technology Predictions

Marketing technology will continue to advance and become more important in modern marketing strategies throughout time. Martech, on the other hand, will have to adapt to a changing marketing environment.

Before investing in martech, marketers should be aware of the following trends:

Marketing Budgets are Shrinking – According to Gartner, marketing budgets are currently leveling off. Companies will have to justify their marketing ROI and spend as a result of this.

Focus on Customer Retention – It costs five times as much to acquire a new customer as it does to retain an existing one. Marketers will begin to focus on creating client connections rather than just acquiring new clients.

Understanding Marketing Spend is Critical – According to Gartner’s Marketing Technology Survey 2018, only 18% of marketers in 2016 knew what multitouch attribution (MTA) was. This number rose to 52% in 2018, with respondents stating that they employed MTA to assess ad effectiveness. MTA, on the other hand, is constrained to just demonstrating value online. Marketers will need to implement unified marketing measurement since they are constantly under pressure to prove ROI across all channels.

More Innovation – A fascinating contrast exists between established enterprise software companies investing in cloud-based solutions and up-and-coming start-ups. This increase in competitiveness will lead to increased marketing creativity. Additionally, marketing technology businesses will be able to give clients with more sophisticated solutions to enable marketers interact directly with their consumers and establish ROI, thanks to the introduction of IoT and continued progress in AI marketing.

Marketing Technology Predictions
Marketing Technology Predictions

Technology Challenges in Marketing

Implementing, maintaining, and enhancing your company’s martech isn’t a simple or straightforward procedure. Rather, before fully realizing the benefits of marketing technology, companies should plan to overcome a few major difficulties.

Choosing the Most Appropriate MarTech Platform

Choosing the proper platform is challenging because it entails more than just finding the correct technology; it also entails finding the ideal partner. Integrating a new system can be difficult, and working with internal and external stakeholders to roll out technology can be fraught with snags.

Changing Organizational Culture

Changing the way marketing works can be a difficult task for many businesses. Working with coworkers to teach them on new platforms and workflows creates a barrier to day-to-day operations. “Culture eats strategy for breakfast,” as Peter Drucker put it. Unfortunately, transforming a company’s culture to embrace martech can be a significant challenge.

Too Much Data Processing

In today’s marketing world, there is a lot of data. For your company, sorting through data to determine what is and isn’t vital could be a significant task. Choosing the proper vendor and collaborating with data scientists to examine massive volumes of data might help your marketing department make better decisions.

Agility and Its Importance

The main goal of any marketing technology strategy is to be flexible. An agile methodology encourages a project management process that incorporates engineering best practices with business development, as well as continuous communication and adaptation.

Agility allows marketers to be more flexible, with shorter and more frequent action cycles. Although agile development is typically linked with product development, using the same mindset to marketing can have significant benefits, particularly when distributing products to internal team members. 93 percent of CMOs who use agile tactics say it has helped them get ideas, marketing, and products to market faster.

What Does It Take to Be a Marketing Technologist in Today’s World?

In today’s world, marketing technologists are becoming increasingly vital. They employ technology to solve problems in their marketing departments. The following are some of the things that good marketing technologists do

  • Use data to assist their staff in developing better ads and creativity.
  • Examine software capabilities in relation to the organization’s requirements.
  • Assume the role of a marketing and IT hybrid.
  • As needed, break out from legacy organizational systems.

As the consumer landscape changes, investments in Martech will become increasingly vital. With this in mind, marketing teams must ensure that their martech stacks include solutions that provide a return on investment for the company, while avoiding barriers such as implementation or onboarding that might extend time to value.

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