Maximizing the Value of Martech Innovations - State of Marketing Technology 2018
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Walker Sands State of Martech 2018
State of Marketing Technology 2018
Maximizing the
Value of Martech
Innovations
1
Table of Contents
Walker Sands State of Martech 2018
01 Executive Summary
02 Key Findings
03 Martech’s Biggest Adoption Challenge Isn’t Interest
06 First Comes Agility, then Adoption
10 Optimism for Martech Grows, Despite Roadblocks
13 Technology and Humans Come Together as Partners
18 Building the Martech Stack
19 Maximize Return and Increase Agility
25 Methodology
26 About the Authors
Walker Sands State of Martech 2018
As consumer demands for seamless, personalized To add more fuel to the fire, vendors aren’t making
experiences skyrocket, marketers turn to sophisticated organizations’ lives any easier. Faced with quickly
technologies to meet those needs. Automation relieves growing competition, vendors tend to highlight their
the pressure, data-driven insights ease the pain – and solutions’ features and benefits rather than how
according to the State of Marketing Technology 2018 organizations can best use them alongside their
report, marketers want even more help from technology current strategies. Organizations must understand
in the months and years to come. how their teams will absorb solutions before they will
feel confident in a purchase.
We know from our State of Marketing Technology 2017
report1 that marketing organizations have made strides Our third annual report, created by Walker Sands
in embracing martech innovations and building best- Communications in partnership with chiefmartec.com,
of-breed stacks. However, slow and steady has yet to works to fill in the missing pieces. Based on a survey
win the race. In 2018, most organizations still lack the of 300 professional marketers, the survey finds that
agility necessary to derive full value from their marketing organizations need more help maximizing
technology investments. the benefits of their martech solutions to keep up with
the rate of innovation.
1 1
https://www.walkersands.com/2017-State-of-Martech
Key Findings
Walker Sands State of Martech 2018
52% 65%
Marketers have rejected the “set it and Marketing organizations will increase
forget it” philosophy. their martech budgets.
Fifty-two percent of marketers assess their martech Sixty-five percent of marketing organizations say
stacks at least every six months. they plan to increase their spend on martech in the
next year.
28% 56%
Marketing organizations can’t keep up The future of marketing requires both
with the rate of martech innovation. technology and creativity.
Sixty-three percent of marketers feel the martech Fifty-six percent of marketers believe an equal mix
landscape has evolved rapidly or at light speed in the of creativity and technology will drive marketing
last year, while only 28 percent feel the same about strategies five years from now.
their company’s use of martech.
2
Walker Sands State of Martech 2018
Martech’s Biggest
Adoption Challenge
Isn’t Interest
Marketers understand the importance of
keeping pace with martech innovation, and
they’re proving it. Organizations have made
room for internal martech discussions and they
plan to increase their martech spend in the
year ahead.
3
“
Most marketing organizations to market, it becomes more
Walker Sands State of Martech 2018
add tools to their stack every difficult for decision makers
six months to a year, which is to not only keep pace with
a rational adoption strategy. the rate of innovation within
Marketing technology is evolving
Companies strive to keep up the martech space, but
with new technologies, but also generate ROI from faster than most marketing
also understand it’s unrealistic their investments. organizations can absorb it.
(and unhealthy) to add new
tools every month. However, as This has been the case since — Scott Brinker
vendors ramp up the speed at our first report from 20162. Founder and editor of chiefmartec.com
which they bring new offerings
2
https://www.walkersands.com/New-Martech-Buyer-Journey
How often does your company add new tools to its
marketing technology stack?
Every week Every month Every six
months
9% 13% 26%
We never implement
Once a year Every two years new martech
solutions
27% 15% 10%
4 Source: Walker Sands State of Marketing Technology 2018
Most marketing organizations up. The majority of respondents
Walker Sands State of Martech 2018
still cannot implement solutions assess their martech stacks
at the same rate that the at least every six months.
technology evolves, or in Even in the face of adoption
pace with their own hopes challenges, marketers have
for the future. Three years of rejected a “set it and forget
unmet expectations later, and it” approach to martech
organizations experience the investments. Organizations
same troubles. respect marketing technologies
and operations as true
However, marketers are aware disciplines, not just an ad
of their own struggles to keep hoc set of tools.
How often does your company assess its marketing
technology stack holistically to ensure you have the right
tools to meet your goals?
Weekly Monthly Every six months Once a year
11% 17% 24% 24%
Every two years More than every We never assess
two years our stack
9% 10%
6%
5 Source: Walker Sands State of Marketing Technology 2018. Percentages don’t add up to 100% due to rounding.
Walker Sands State of Martech 2018
First Comes Agility,
then Adoption
Most marketers can’t keep up with the rate
of innovation within the martech ecosystem,
leaving them unable to assess new technology
based on features and benefits. Instead,
marketers focus only on solutions that are
easy to implement, allowing them to keep
their heads above water.
6
Walker Sands State of Martech 2018
While 63 percent of marketers To date, only 15 percent of marketers
“
feel the martech landscape has say their company is very agile when Marketers are not universally
evolved rapidly or at light speed in it comes to embracing new solutions earning results they hope
the last year, only 28 percent feel for their martech stacks. This lack of
for or need.
their company’s use of martech has agility may read like a soft metric,
advanced at the same pace. but it’s causing real investment pains. — Scott Brinker
How do you feel the marketing technology landscape has evolved in the past three years?
31% 48% 15%
2% 4%
Has not evolved Has evolved slightly Has grown steadily Has evolved rapidly Has evolved at
at all light speed
Source: Walker Sands State of Marketing Technology 2018
How do you feel your company’s use of marketing technology has evolved in the past three years?
28% 37% 20%
8% 8%
Has not evolved Has evolved slightly Has grown steadily Has evolved rapidly Has evolved at
at all light speed
7 Source: Walker Sands State of Marketing Technology 2018. Percentages don’t add up to 100% due to rounding.
Compared to last year, the most aren’t at a point where
Walker Sands State of Martech 2018
number of marketers saying they can evaluate martech
their company invests the based on its features. What
right amount in martech has matters most to marketers are
decreased. The percentage of the basics: ease of use and
organizations reporting that ease of implementation. They
martech enables employees to simply can’t dedicate time and
do their jobs has also declined. resources to think critically
This indicates that the martech about how tech innovations can
ecosystem is evolving at a rate give them a competitive edge.
companies find impossible to
match. And even when they do It’s important to understand
make investments, marketers what’s standing in the way of a
are not universally earning more agile evaluation standard
results they hope for or and boosted ROI. Budget
need. Because marketing is the top factor preventing
organizations struggle to organizations from making
remain agile as the martech greater martech investments,
landscape quickly evolves, as will likely always be the case.
How agile is your company in its ability to add new solutions to your
marketing technology stack?
31% 46% 15%
8%
Not at all agile Not very agile Somewhat agile Very agile
8 Source: Walker Sands State of Marketing Technology 2018Walker Sands State of Martech 2018 AGREE OR DISAGREE:
THIS YEAR LAST YEAR
My company invests the right amount in marketing technology. The marketing technology in place at my company is up to date
and sufficient for helping me do my job more effectively.
30% 50% 13% 31% 47% 16%
6% 7%
25% 47% 24% 25% 47% 22%
4% 5%
Strongly Disagree Agree Strongly Strongly Disagree Agree Strongly
Disagree Agree Disagree Agree
Source: Walker Sands State of Marketing Technology 2018. Percentages don’t add up to 100% due to rounding.
The same goes for an internal resistance What’s interesting though is that (outside of implementation period leaves marketers
to change, which 27 percent suffer from. cost) difficulties with implementation round falling behind the rate of innovation, and
There are certainly steps organizations can out marketers’ top three martech hurdles – impacts their agility.
take to instill cultures that welcome and over a quarter of marketers (27 percent) list
thrive on change, but internal acceptance this problem. Clearly it takes organizations
will likely grow as external acceptance of longer to onboard new martech than many
martech grows as well. vendors assume, and this cumbersome
9Walker Sands State of Martech 2018
Optimism for
Martech Grows,
Despite Roadblocks
The good news for martech vendors is that a
lack of agility has not stopped marketers from
believing that technology will play a bigger
role in their strategies down the line. Most
marketing organizations plan to increase
their technology budgets and have best
practices in place for assessing new tools.
10Walker Sands State of Martech 2018
A tech-savvy approach encourages marketing organizations to
counterattack the challenges covered in the last section, like lack
of agility and out-of-date technology. This has resulted in exciting
changes such as:
Increased budgets. Established best practices.
Sixty-five percent of marketing organizations plan to increase their A third of marketing organizations have a formal methodology in
spend on martech in the next year — only 5 percent plan to decrease place to make those company assessments, and another third are in
this spend. Gartner3 found that a quarter (23 percent) of CMOs even the planning stages. Marketers are discussing their investments with
have fixed annual budgets dedicated to innovation. real intention and factoring in a broad collection of criteria to do so.
How do you expect your company’s marketing Does your team have a formal methodology for
technology budget and investment to change in assessing the effectiveness of your marketing
2018 compared to 2017? technology stack?
30% 48% 17% 27% 37% 36%
1% 4%
Decrease Decrease Stay the Increase Increase No, we don’t No, but we plan to Yes, we have
greatly slightly same slightly greatly don’t need one create a formal a formal
methodology methodology
Source: Walker Sands State of Marketing Technology 2018 Source: Walker Sands State of Marketing Technology 2018
11 3
https://www.gartner.com/smarterwithgartner/2017-2018-gartner-cmo-spend-survey/Walker Sands State of Martech 2018
Eagerness to adopt.
Marketers are ready and prepared to adopt new martech.
Forty-one percent of marketing organizations believe they have
exceptional tech skills that benefit the entire department. What’s
more, over half (53 percent) feel their tech skills are adequate
and only 6 percent believe they’re missing the skills their current
roles demand.
Which of these statements best describes how
your skills line up with the technology needs in your
marketing department?
53% 41%
6%
I am missing I have adequate I have exceptional
the tech skills tech skills for my tech skills that
required for my current role can be leveraged
current role across the
department
Source: Walker Sands State of Marketing Technology 2018
12Walker Sands State of Martech 2018
Technology and
Humans Come
Together as Partners
Marketers know that technology will play a
larger role in marketing than it has before.
However, most marketers actually identify an
equal mix of creativity and technology as the
best option for leading their organization into
the future.
13Has your company’s marketing strategy been driven more by creativity or technology in the past?
Walker Sands State of Martech 2018
What about today and into the future?
CREATIVITY TECHNOLOGY EQUAL MIX OF BOTH
14%
29% 29%
41%
Five years 47% Five years
Today
ago from now
56% 30%
24%
30%
Source: Walker Sands State of Marketing Technology 2018
14Marketers are optimistic that disservice to underestimate
Walker Sands State of Martech 2018
it still takes two to tango. the role human creativity
More than half (56 percent) of and imagination play in using
marketers believe an equal mix those technologies to deliver
of creativity and technology a remarkable customer
will drive marketing strategies experience. An equal mix of
five years from now. Forty-one creativity and technology is the
percent believe an equal mix essence of modern marketing.
dominates today.
And 61 percent of marketers
Humans will provide the feel that the advancement
creativity, martech solutions of martech will not threaten
will offer cognitive boosts, and their jobs, indicating that
together, the two will support organizations truly do not see
a roadmap for operational technology as a pariah, but
success. While it’s obvious that rather as a way to supplement
investments in technology are and empower them as they
necessary for marketers to be execute creative strategies.
successful, it would be a
AGREE OR DISAGREE:
I worry that marketing technology will threaten my job at some point during my career.
17% 44% 28% 11%
Strongly Disagree Disagree Agree Strongly Agree
15 Source: Walker Sands State of Marketing Technology 2018“
Overall, technology does not already fully implementing and
Walker Sands State of Martech 2018
intimidate today’s marketers – another 39 percent planning to
they believe there’s a limit on implement it.
how far technology can take To always remain relevant
their organizations, namely a The bottom line is that 69
creative cap. Marketers hardly percent of respondents don’t
and valuable as martech
trust the value of nascent think the perfect marketing advances, marketers must find
technologies like chatbots, stack exists just yet. Perhaps
artificial intelligence and it never will. As a result, a
ways to enhance their skill sets
blockchain. IoT ranks most human touch will be always in tandem with how and where
popular among marketers, be necessary to execute
with 13 percent of organizations effective marketing campaigns.
the industry evolves.
— Scott Brinker
Do you think there is such a thing as the ‘perfect
stack’ for marketing technology?
16%
Yes, because our
company has it
15%
Yes, because I’ve
envisioned it
69%
No, it’s always a
work in progress
16 Source: Walker Sands State of Marketing Technology 2018Walker Sands State of Martech 2018
At what stage of implementation is your company with the following technology as part of your
marketing strategy?
FULLY IMPLEMENTED PARTIALLY IMPLEMENTED JUST GETTING STARTED
ABANDONED PLAN TO IMPLEMENT NO PLANS TO IMPLEMENT
Artificial Intelligence/ Chatbots VR/AR
Machine Learning
11% 9% 11%
52% 51% 58%
8%
12% 15%
13%
13%
17% 4%
2%
2% 7%
10%
6%
Blockchain Internet of Things
8%
58% 13%
44%
9%
13%
11%
5%
16%
8%
10% 3%
17 Source: Walker Sands State of Marketing Technology 2018. Percentages do not add up to 100% due to rounding.Building the Martech Stack
Walker Sands State of Martech 2018
When it comes to the group getting the most out of their marketing tools, our 2017 report was clear — marketers using
best-of breed-stacks. This year’s respondents agree, and now 34 percent of marketers use an integrated best-of-breed
stack. Up from 27 percent last year, movement toward best of breed hasn’t slowed down since we last checked in.
Core Solution Experimentation N/A (Don’t Use)
Account-based marketing (ABM) 23% 27% 49%
Ad tech (display, programmatic, etc.) 25% 38% 37%
Analytics 45% 37% 18%
Artificial Intelligence (AI)/Machine Learning 12% 24% 65%
Augmented reality 12% 21% 67%
Blockchain 11% 20% 69%
Chatbots 11% 21% 68%
Content marketing 48% 35% 17%
Customer data platform (CDP) 33% 30% 37%
Customer relationship management (CRM) 48% 28% 23%
Data management platform (DMP) 33% 33% 35%
Digital asset management (DAM) 27% 32% 41%
Ecommerce 29% 25% 46%
Email marketing 54% 32% 14%
Integration platform as a service (iPaaS), data
integration or tag management 17% 30% 54%
Internet of Things (IoT) 17% 25% 58%
Loyalty marketing 32% 30% 37%
Marketing automation/campaign management 36% 34% 30%
Marketing resource management (MRM) 28% 25% 47%
Mobile marketing 33% 32% 36%
Optimization and personalization 32% 33% 35%
Performance and attribution 24% 33% 43%
Sales automation and enablement 25% 27% 48%
Search marketing 39% 31% 30%
Social media marketing 48% 34% 18%
Video marketing 29% 40% 30%
Virtual reality 15% 17% 68%
Web content and experience management (CMS/WCM) 40% 32% 29%
Source: Walker Sands State of Marketing Technology 2018. Percentages do not add up to 100% due to rounding.
18Maximize Return and
Walker Sands State of Martech 2018
Increase Agility
The 2017 martech can’t keep up. It’s tough
ecosystem had marketing to adopt the best martech
organizations’ heads technologies quickly,
spinning. Despite the and it’s unnecessarily
chaos, marketers came difficult to blend solutions
into 2018 inclined to see and assemble the ideal
marketing technology best-of-breed stack. But
as a friend, not a marketers do envision a
foe. They have a firm more tech-driven future,
understanding that best- and to that we say, “keep
of-breed solutions on going!” We’d also like
are right for them, and to help.
they are making good
on this knowledge by Here are four tips we’ve
putting more resources determined can help you
toward integrated start driving ROI from
martech investments. your martech investments
sooner and ultimately
Despite good intentions, keep pace with new
however, marketers just martech innovations.
19Walker Sands State of Martech 2018
Vendors, don’t underestimate the
value earned when you get inside
your customers’ heads.
Put yourself in the shoes of a marketing
organization and see how well your
company satisfies the considerations of
your potential buyers.
To win over prospects, it’s important to better
understand their needs. Acknowledge the work
that goes into adopting new technologies and
treat early implementation and training stages
as opportunities to extend your relationships with
customers. Specifically, you should hear direct
from marketing professionals about
their current use of martech, as well
as their plans for the future.
20Walker Sands State of Martech 2018
Be more strategic during
your selection process.
Although it’s tempting to Once you’ve identified the and can detect signals
make the easy purchasing tools required to support when prospects move from
decision, it’s always worth your customer needs, it’s one stage to another.
the effort to reflect on your important to assemble a set
ideal customer journey and of very specific scenarios Specific scenarios like these
let that insight guide your where you’ll put them help you see through the
martech selection process. to use. You won’t be able beautiful presentations For instance:
to predict every last use and flashy case studies
Journey mapping helps case, of course, but a few vendors rely on. Asking
evaluate technology concrete examples ensure potential vendors to walk What would it look like to
choices through the lens you’re evaluating vendors you through how their personalize web, email and
of which purchases offer and assessing their broad products fulfill specific drip campaigns for your
the capabilities to best strategy capabilities. use cases helps to surface customer?
delight your customers. differentiators. Vendors
Compare the touchpoints But a better question A and B may achieve the
Is this something needed
you currently support with would drill down to how same results, but perhaps
those your customers want you identify customers one does so in a manner
to help improve your
to have. You should also and prospects in different that better meshes with customer experience?
learn what users are lifecycle stages. You want your organization’s existing
trying to accomplish martech that addresses the technologies and resources.
with each interaction. critical points at each state,
21Walker Sands State of Martech 2018
Honor post-selection
best practices
Once you’ve determined the It’s also important to
martech tool that best solves incorporate frequent feedback
for your needs, it’s important to opportunities into your plan.
develop a detailed plan for how Feedback loops enable valuable
you’ll effectively and painlessly experimentation — it’s not
absorb the technology into your just about learning how a
marketing operations. given platform works. It’s also
about learning how to best
Switching vendors requires a apply capabilities in ways that
tremendous amount of focused actually move the needle with
energy. Embedding a new tool your customers. These insights
into your organization’s thinking are not ones you can usually get Ask yourself:
and behaviors is no small feat. out of the box.
That’s why your plan must go How will theAsk
martech
yourself:fit into
beyond simple factors like how If your previous martech the actual muscle groups of
you will train employees on the investments have failed, — How will the martech fit into
your organization?
the actual muscle groups of your
new technology, or who will be assess if you’re putting enough
responsible for managing the emphasis on best practices and organization?
solution long term. following through on your post-
acquisition plan.
22Walker Sands State of Martech 2018
Be agile
Another important lesson to Spotting inflexible vendors
keep in mind when creating requires a closer look at how Ask yourself:
your best-of-breed stack is the technology blends with the
that you must plan for change. rest of your martech ecosystem.
Even if it feels like a lot of This is often a question of data. How much data can I directly access?
change already, there’s more That last question is really an
to come. Make sure you’re important one. The tools you When can I access data? Is it only
bringing on martech solutions choose should never lock in
as the data goes into the system,
that accommodate change your data, especially if you’re
but pulling data out of the system is
and supporting them within dealing in customer data. You
an agile team and framework. should choose to stick with a nearly impossible?
This could be via integrations, vendor because it’s the best
frequent updates or a solid option on the market for your Will migrating or integrating my
customer support team. This organization, not because your data to a new solution come at an
flexibility is the difference data is literally stuck there. enormous switching cost?
between a martech stack fueled
by options, and one undercut
by dependencies.
23Walker Sands State of Martech 2018
Keep skills relevant as
martech evolves
It’s only natural that However, increases in expand your knowledge
businesses are now technology do bring up and grow your skill sets.
etching out roles like the job security issue. Will
chief marketing officers robots replace employees? Doing so not only makes
(CMOs) and data scientists you more attractive to
as technology and data Some industries will see employers, but it can
play bigger parts within automation overpower also be a real boost in Broken down, nearly half
marketing organizations. traditional roles in the near confidence. Broken down, (46 percent) of specialists
Some are even opting for future, but not in marketing. nearly half (46 percent) of (have expertise in a
blended positions like Job security concerns in specialists (have expertise one area like demand
chief marketing technology the marketing industry are in a one area like demand gen, social media or
officer (CMTO)4 and more a function of change gen, social media or
email) express martech-
more meta martech and than an actual threat. email) express martech-
operations team. This related job security fears,
Where marketers are at risk related job security fears,
approach better accounts is getting left behind due compared to 34 percent compared to 34 percent
for the convergence to technology’s light speed of generalists (works of generalists (works
between marketing change of pace. As people across all disciplines). across all disciplines).
operations and begin to get individually This points to the
marketing analytics. automated or new systems importance of diversified
replace them, you must skills as a buffer against
move along with that shift, marketing obsolescence.
24 4
https://www.adweek.com/brand-marketing/as-tech-in-marketing-becomes-more-commonplace-so-does-the-necessity-of-the-cmto/Methodology
Walker Sands State of Martech 2018
Walker Sands surveyed 300 marketing professionals in Q1 2018. The breakdown of job
titles, work experience and company size is as follows:
Marketing Role Company Size
1-50
31% 24% 24% 21% 18%
51-99
14%
Assistant/Associate
100-499
25%
VP or higher 500-999
Manager
12%
Director
1,000-4,999
15%
5,000+
16%
Marketing Experience
8% 13%
LESS THAN 3 YEARS 20%
3-5 YEARS
6-10 YEARS
27%
11-25 YEARS
MORE THAN 25 YEARS
31%
25 Source: Walker Sands State of Marketing Technology 2018. Percentages do not add up to 100% due to rounding.About the Authors
Walker Sands State of Martech 2018
Jennifer Mulligan Scott Brinker
Account Director Editor
Walker Sands Communications chiefmartec.com
Jennifer Mulligan is an account director at Walker Sands. An Scott Brinker is the editor of the Chief Marketing Technologist blog
expert in all things martech, Jennifer helps marketing technology (chiefmartec.com), where he covers topics at the intersection of
companies achieve their PR and lead generation goals through marketing and technology. He is also the VP platform ecosystem
media relations and content marketing campaigns. Jennifer has a at HubSpot and the program chair of MarTech, the marketing
keen eye for relevant and newsworthy stories that connect the dots technology conference.
between her clients’ expertise and what interests reporters and
their audiences.
26Walker Sands State of Martech 2018
About Walker Sands
Walker Sands is a public relations and digital marketing agency for
business-to-business technology companies. With an integrated
approach to creative services, Walker Sands helps clients build brand
awareness, enhance credibility and drive new business. Walker Sands
is a five-time Inc. 5000 honoree and regular recipient of some of
the industry’s most prestigious awards from organizations including
Entrepreneur, Holmes Report and Hermes Creative. Walker Sands was
founded in 2001 and has offices in Chicago, San Francisco and Seattle.
To learn more, visit walkersands.com or walkersandsdigital.com.
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