CMOs are Expecting Cost-Cutting On Their Martech Budgets

    CMOs are Expecting Cost-Cutting On Their Martech Budgets

    Amid the flattening curve of economic growth, the utilization of marketing technology stack remains flat or drastically reduced among businesses globally.

    In light of the pandemic, more CMOs are looking for business agility and collaboration. With the marketplace slowly recovering from the first phase of COVID-19, almost 60% of marketing leaders indicated moderate to severe budget cuts on martech solutions – claims a recent Gartner study.

    In fact, these are the highly protected martech investments, and about 35% of businesses are initiating a way to overhaul the martech stack. Lately, martech stack utilization is a struggle for various organizations. Even the marketing companies are using 58% capabilities of their martech stack – a curve that is flat since 2019!

    Unsurprisingly, about 66% have delayed a purchase, even the previously approved marketing solutions. However, these low levels of utilization mark a considerable threat for the organizations itself – particularly in the middle of the economic crisis. In fact, companies that facing cuts for three quarters, are also struggling with better utilization.

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    In its essence, businesses that demand attention to streamlining tech acquisition or enhancing usage could hinder. Despite the ongoing turbulence, most marketers are hopeful about their business impact. Nearly 81% believe that their existing martech stack is effectively meeting their business objectives.

    As cited by Ben Bloom, Senior Director Analyst at Gartner Marketing practice – “What we are seeing is a false sense of security for many marketing organizations…When times are good, and the organization is growing, under-performing investments may be able to evade scrutiny. Overconfidence is a major risk that could impede critical business evolutions, and marketers will be hard-pressed to deflect blame to unfulfilled vendor promises.”

    However, about 20% of a marketing technology leader who indicated having an effective martech stack has also noted struggling to utilize their stack’s full capabilities. This shows that the capabilities that are not being used can’t generate business value. As a result, experts from Gartner suggest marketers execute regular audits of their martech stack.

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    This is also essential to determine the best vendor approach given the current scenario. Businesses that have adopted an agile approach are delivering more in this fast-changing demanding marketplace. Even collaborations can help struggling organizations to overcome integration as well as utilization challenges – ramping up new use cases and technologies.