Marketers are spending more on management technology as compared to operational tech, says Merkel survey.
The latest survey by Merkel reveals that nearly 60% of marketers will spend more of their budgets on data management platforms (DMP) than operational technology such as campaigns and decision management tools. Merkle’s Q1 2020 Customer Engagement report stated that 29% of respondents invest only in management technology solutions instead of spending on both.
The survey polled 400 U.S. and UK based marketers. As per the study, only less than a quarter of marketers balance their marketing spending. Only 24% of them said they spend the same amount of management and operational technology. Marketers are focusing more on data management tools as compared to solutions used for campaign activation. This suggests there is a disconnect between collecting and managing customer data and having the necessary marketing technologies to use the data into campaign efforts.
According to the survey, 75% of the marketers had invested in a customer data platform (CDP). Meanwhile, 37% of them had invested in a CDP as well as a DMP. Only 17% of respondents spend in a DMP without implementing CDP. When it comes to marketing budgets, identity solutions account for a good share. The majority of marketers are investing a substantial amount of their budget into identity tech. Nearly half of the marketers allocate between 21% – 25% of their marketing spend to identity-related solutions.
A sizeable portion of the marketing spends is also allotted to solutions that offer “traditional processing of names and addresses and to digital onboarding.” Although the majority of marketers invest in personalization technology, 78% of them had failed to implement it on more than three channels within the first year of having the tech. Half of the marketers report they had implemented personalization on five or more channels.
Meanwhile, less than 10% of them said they used personalization on more than eight marketing channels. Marketers are slow while applying personalization within the first year of having it; however, at least half of them have been able to move beyond their limited first-year implementations.
To take full advantage of the collected data, marketers will need to build their martech stack to include data management platforms as well as the operational technology that will enable effective campaign activations.