Marketing Technology (Global Market)

2022: Named 3 Top IT Trends Affecting Marketing Directors

In early December 2022, Gartner identified the main trends that will affect the work of marketing directors in 2023. It is noted that the heads of the relevant divisions will have to ensure effective growth in an unstable market situation.

Analysts believe that marketing directors will face several main challenges in the emerging macroeconomic situation. This is, in particular, the changed behavior of customers who are forced to reconsider their needs in the context of high inflation, which provoked the need to reduce costs. In addition, there is an urgent need to optimize business processes, while the situation in the market as a whole can undermine the value of the brand.

Gartner identified major trends that will affect the work of marketing directors in 2023

To drive growth in a challenging environment, marketing executives must act quickly and decisively to set investment priorities and shape a strategy for the year ahead, "said Ewan McIntyre, head of research at Gartner Marketing.

Trend# 1. Changing customer behavior adds to uncertainty

Gartner believes that amid rising prices and economic uncertainties, consumer demand and behavior will fluctuate in an unpredictable way. According to a survey of more than 1,500 buyers in September 2022, inflation is prompting cost cuts: for example, 30% of consumers buy more goods under their own brands of retail chains. And almost every fifth buyer refuses personal visits to stores in favor of ordering online. In addition, most consumers and B2B customers will try to minimize the provision of personal data, which will complicate marketing and demand tracking. The development of regulatory and technical measures to ensure the confidentiality of consumer data will also have an impact on the industry. Therefore, company leaders will have to look for new ways of digital marketing, including using personalized interaction.

Trend# 2. Cross-Functional Collaboration Results Worsen

Strategic marketing priorities, such as innovation, customer experience, and digital commerce, have evolved into enterprise-wide challenges with complex cross-functional interactions. Groups of employees with different skills and specializations join forces to achieve a common goal. However, this leads to a reduction in funding for marketing departments, the budgets of which have already suffered greatly due to the COVID-19 pandemic, the crisis and global economic difficulties. This leads to a decrease in efficiency in terms of the implementation of marketing initiatives themselves. Therefore, marketing directors should adapt team structures to implement new cross-functional operational models.

Marketing Directors should adapt team structures to implement new cross-functional operational models

Trend# 3. Market conditions undermine brand value

Traditional factors that determine brand value, such as target audiences and positive consumer attitudes, are losing ground due to market transformation. The emergence of a large number of new players increases competition, and the availability of the Internet and various means of communication simplifies the search for information about new brands. Against this background, customer requirements for purchased products and services are increasing. A survey conducted by Gartner analysts in June-July 2022 showed that 75% of consumers searched for information about a previously unfamiliar brand when shopping online, and only 15% of the audience reported adherence to a familiar brand.^[1]

2018: $121.5 billion market valuation, up 22% - WARC

In 2018, the volume of global marketing IT solutions reached $121.5 billion, which is 22% more than a year earlier. This is evidenced by the data of the research company WARC, which were released in mid-October 2019.

The study was conducted in conjunction with the consulting company BDO. Experts interviewed marketers in North America, the UK, Europe and the Asia-Pacific region and reported that 43% of respondents expect increased spending on marketing technologies (martech) within 12 months. Only 4% of respondents told about the upcoming decline.

Well-known British and North American companies in 2019 spend on average 26% of their budget on marketing, while in 2018 the figure was 23%.

The volume of the market for marketing IT solutions for the year was estimated at $121.5 billion

Typically, marketing technologies help marketers optimize advertising spending. Most of the surveyed brands in 2018 noticed a decrease in costs due to marketing technologies, but in 2019 there were fewer of them - about 33%. Most respondents agreed that spending on advertising platforms is not related to investment.

More than three-quarters of brands use martech to effectively promote their products through channels such as email and social media. About two-thirds of brands use marketing technology for content, CRM and analytics.

In addition, optimization and tracking are called promising areas of analytics, as more and more marketers pay attention to consumer experience (CX).

The study notes that the market for marketing technologies is far from mature. Only 24% of marketers see all the necessary tools in their arsenal. In Britain, such respondents are 27%, in North America - 15%.

Data skills have become an urgent market need. 68% of brands and 83% of marketing agencies stated their demand. Almost half (49%) of brands put creativity above strategy and data, 21% of them call it their priority. Only 25% of agencies consider creativity more important than strategy and data.

Consumer experience is becoming a crucial element in the struggle for the attention of a buyer who lives in omnichannel conditions. Although 96% of brands noted the importance of CX both online and offline, less than half use technology to track consumers on various platforms. Nevertheless, 73% of respondents believe that they have technologies for optimizing CX on most of the channels and common ground.

As for specific technologies, less than 40% of advertisers use the Internet of Things, and another 36% of respondents do not plan to introduce such technology within 12 months.

In 2018, the volume of global marketing IT solutions reached $121.5 billion, which is 22% more than a year earlier

Artificial intelligence and cross-platform identification look more promising. Last but not least, brands are ready to master biometrics and facial recognition. It is noteworthy that almost a third of respondents talk about a lack of understanding of the technologies available to the market - over the year the share of "misunderstandings" has not decreased.^[2]

The wealth of technology available provides many choices for marketers to decide where to place the budget. And this decision carries a certain risk when it comes to emerging technologies, "says Amy Rodgers, managing editor of Research & Rankings. - This perception of risk affects 29% of respondents who do not understand the technologies available on the market. The fact that this share has not decreased since 2018 indicates constant changes in the industry and reinforces the need for marketing specialists who are needed to effectively allocate budgets.

See also

• Advertising (Russian market)
• Online advertising (Russian market)
• PR agencies (Russian market)
• Advertising (Global Market)
• Online Advertising (US Market)
• Online Advertising (European Market)
• Video advertising on the Internet (Russian market)
• What can not be advertised on the Internet

• B2B-marketing
• Influence Marketing
• Conducting Market Research
• What market research is needed for
• Market Research Types

Notes