June 13, 2024
by Soundarya Jayaraman / June 13, 2024
The MarTech industry is fast-growing, fast-evolving, and a bit overwhelming. A new tool crops up constantly.
G2 data shows the number of products in the marketing software category grew by 15% in 2023. The famous MarTech map touts over 14,000 martech tools. There's just too much tech and not enough time to explore.
But how do businesses decide which tools to use, how many they buy, and how many their marketing teams actually use? To discover the major trends in the MarTech landscape, G2 fielded a survey of digital marketing technology users. Combined with original data from our marketplace with 65 different marketing categories, here’s what we found.
Our survey shows integrations are no longer a nice-to-have but a mission-critical factor for marketers building their MarTech stack.
This emphasis underscores the need for tools that seamlessly connect and share data across the entire MarTech ecosystem. Marketers are seeking a unified tech landscape that streamlines workflows, eliminates data silos, and maximizes the value of their MarTech investments. Also, businesses want to build a robust MarTech stack without breaking the bank and determine if their investment paid off. Take a look at the numbers.
Our data also reveals a clear distinction in priorities based on company size.
Another surprising statistic is that only 1% of businesses prioritize security compliance as the top selection factor. The immediate needs of integration, affordability, and ROI overshadow the critical importance of data security. Furthermore, another G2 finding shows that 54% of software buyers purchase software that’s not vetted by the IT team. Now, this is a bit concerning.
Businesses use different platforms like customer relationship management (CRM) software, customer data platforms (CDP), content management systems (CMS), and more. However, for these platforms to be truly effective, they all need to work together seamlessly. This is why it's no surprise that MarTech users rank integration above factors like cost, ROI, and ease of use.
Here are our recommendations to marketing professionals and businesses seeking MarTech products with seamless integration and cost-effectiveness.
Tip: Find the time to get ROI, user adoption, implementation, and other important metrics for different MarTech software in G2 Grid Reports.
Who controls the MarTech stack in an organization directly impacts its efficiency and effectiveness. While there have been some struggles in the past between the IT and marketing teams on ownership, our survey shows that most businesses now have marketers run the show.
Marketing teams now control MarTech, but strong partnerships with IT are still crucial. Think about it: a digital marketer whose primary job is to promote a company cannot be working on providing access to tools, nor can they look at glitches in their toolsets day in and day out. Instead, they can use their expertise to chalk out strategic goals, select the most suitable MarTech tools, and work to get the most value out of them.
The IT department can provide vital technical expertise. They can help quickly adopt software, integrate them for better use, and maintain the tech stack. This includes maintaining critical infrastructure like data warehouses central to marketing efforts.
So, communicate regularly via meetings with IT counterparts, take joint decisions for easy adoption, and ensure optimal utilization of the marketing stack.
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Our survey reveals a shift from companies getting bogged down by a bloated MarTech stack towards optimization. Businesses rapidly adopted all kinds of MarTech during the peak pandemic years as customer interactions shifted dramatically online during the lockdown.
However, the recent economic uncertainty has ushered in a more strategic approach to managing the stack. Most companies are optimizing their SaaS sprawl to have the right tools rather than blindly adding them.
MarTech stack size varies by company size:
There’s a disconnect between the number of MarTech products subscribed to and the number actively used. Specifically, the utilization rate dips slightly for those with more options.
Similarly, MarTech usage varies by company size:
To be fair, our survey reveals that MarTech utilization has increased in the past three years. Marketers are actively working to reduce underutilization.
The community is open about problems like a lack of skilled MarTech professionals, neglect of MarTech over other marketing goals, and IT constraints that hinder them from getting maximum value from digital marketing technology products.
Businesses are on the right track in terms of auditing and eliminating unused and underused marketing software. However, it is important to discover the reasons behind underuse before eliminating any tool that gathers dust.
So, conduct deep dives before ditching tools. Is there any goal mismatch? A lack of training? Integration challenges? By pinpointing the issue, you can potentially address it and salvage a valuable tool from your MarTech stack, maximizing your ROI. Here’s how you can address specific issues impacting usage:
Related: Learn more about marketing objectives and how to assign key performance indicators to each objective.
The MarTech landscape is witnessing a surge in demand for automation tools, as evidenced by the top 10 marketing software categories on G2 in 2023. Marketing automation software is most looked for as marketers look for ways to streamline their workflow and make their teams more efficient.
The digital marketing landscape throws a lot at today's marketers – social media, email campaigns, website optimization, and the list goes on. The sheer volume of tasks and channels necessitates marketers to move away from manual processes.
Automation tackles this head-on, freeing up valuable time for marketers. It handles the heavy lifting of repetitive tasks like email blasts, scheduling social media posts, or populating lead data on CRM throughout the customer journey.
With AI and machine learning (ML) technology also thrown into the mix, you can expect even more sophisticated AI-powered workflows. It allows for smarter marketing campaign management and hyper-personalization with real-time data collection and analysis. It’s no wonder marketers are looking for automation tools.
*Above are the top 5 marketing automation software solutions according to G2’s Spring 2024 Grid® Report.
Beyond marketing automation technology, the presence of CDPs alongside marketing automation platforms highlights a growing focus on customer-centric marketing. CDPs unify customer data from various sources, providing a holistic view of each customer. This allows marketers to make data-driven decisions and personalize campaigns and experiences based on individual needs and preferences.
Additionally, the inclusion of email marketing tools and SMS marketing software reinforces the importance of personalized communication across different channels.
The variety of tools marketers seek indicates the prominence of multi-channel marketing strategies. Marketers are looking for solutions that cater to various channels, including search engine optimization (SEO) tools for organic search visibility, affiliate marketing solutions for broader reach, influencer marketing platforms for brand partnerships, and event management platforms for engaging audiences through live experiences.
This demonstrates a desire to create a cohesive marketing presence across diverse channels, reaching customers wherever they are in their journey.
Marketers love automation. But it is only as effective as the data feeding it. So, don't just automate for the sake of automation. Focus on building a data-driven marketing strategy that fuels your automation engine with the right information.
Related: Learn how to automate data integration and reduce your workload.
The survey would not be complete without discussing AI, thanks to the hype surrounding it since the release of ChatGPT in late 2022.
G2 data shows marketing software categories like CRM, email marketing, and SEO tools have most products with AI functionality embedded in them. This has translated to more marketing teams infusing AI into their stack.
However, the rapid advancements in large language models (LLMs) and natural language processing (NLP) have fueled a craze for generative AI tools like ChatGPT and Gemini. This has sparked genuine excitement among marketers, leading to a surge in the adoption of AI products within their MarTech stacks.
Look at our findings that show marketers’ enthusiasm for AI in the MarTech stack.
Further, marketers are interested in generative AI software. Here is some data from our generative AI in the workplace survey that illustrates the point.
Marketers are ready for generative AI tools and want their benefits now. And given how easy it is to access these tools, businesses cannot “wait and watch.” Expedite integrating generative AI capabilities into your MarTech stack. But with caution. The technology is still in its infancy and requires careful consideration before getting deployed into the MarTech stack. Here’s how businesses and marketing leaders can go about it:
Our survey shows how to navigate the booming MarTech landscape. Assess your marketing needs, select the right tools, partner with IT to build and maintain your stack efficiently, train your people, audit and eliminate underutilization, embrace automation, and try AI. Remember, a powerful MarTech stack isn't about having it all; it's about having the right tools for you.
In March 2024, G2 conducted a survey of professionals who left reviews on G2.com in software categories relevant to marketing. The data above reflects responses from nearly 100 marketing professionals representing companies of various sizes and sectors.
Want to know how to build high-performing marketing teams? Read insights from Quantive CMO Casey Carey.
Soundarya Jayaraman is a Content Marketing Specialist at G2, focusing on cybersecurity. Formerly a reporter, Soundarya now covers the evolving cybersecurity landscape, how it affects businesses and individuals, and how technology can help. You can find her extensive writings on cloud security and zero-day attacks. When not writing, you can find her painting or reading.
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