Businesses have invested billions in martech systems, yet nearly all (99%) plan to update their setups next year.
Over a third (35%) are prepared to abandon their current tools, while the rest aim to enhance or streamline their tech stacks in the ongoing pursuit of marketing excellence.
The findings are based on a new Acxiom study of 200 marketing leaders in the UK and US. According to the research, building a solid martech strategy is a priority, with 34% of respondents ranking it among their top three objectives. This priority rivals traditional marketing goals such as increasing brand awareness and attracting new customers, emphasising the critical role martech plays in accomplishing those outcomes.
Despite all the noise around AI, only 21% of respondents regarded implementing marketing AI to be a top objective. However, martech isn’t just a marketing department concern anymore—executives across the C-suite are paying closer attention. Smaller companies, in particular, are embracing martech to stay competitive, using it to stretch their resources and challenge bigger players.
Even amid economic uncertainty, martech budgets are growing. Nearly two-thirds (65%) of respondents expect their budgets to increase by between 5% and 20% over the next year, and only 10% anticipate cuts.
When asked about their goals for updating martech stacks, respondents cited support for new channels, improved performance, and better customer experiences. Practical concerns like integration, compliance with evolving regulations, and simplifying complexity ranked further down the list.
More than half (54%) of businesses surveyed have not yet integrated AI into their martech stacks, but many plan to do so in the future. The majority of the 47% who already use AI stick to simple features such as content recommendations. Advanced applications, such as customer segmentation and real-time personalisation, are still uncommon.
This hesitation reflects a broader issue: many martech systems are outdated. Over half (53%) of respondents admitted their current solutions no longer meet their needs, creating barriers to achieving marketing goals. Measurement and attribution are the top challenges (reported by 37% of respondents) and are frequently hampered by disconnected data systems.
Siloed data continues to be a significant obstacle, with 29% of respondents identifying the need to unify customer data as a key challenge. An overwhelming 68% agreed that fragmented data limits their ability to provide personalised, timely, and relevant customer experiences.
The report concludes: “It’s clear brands are serious about modernising their martech stacks so they can use emerging technologies such as AI to achieve their marketing goals and maintain a competitive edge. But despite having a mandate to modernise, progress is slow due to obstacles such as martech complexity, slow cloud migration, and a lack of direction or internal expertise.
“Organisations can accelerate their modernisation efforts both by dedicating an internal team to martech and by working with a service partner that has all the experience and expertise they need.”
(Photo by Unsplash)
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