Marketing Technology: The Next Frontier for Technology Channels
According to a Gartner report, in 2011, B2B and B2C marketing budgets as a percentage of revenue were almost three times as high (10 percent) as IT budgets (3.6 percent). On average, 30% of named marketing related technology & services is bought by marketing which implies that marketing now influences almost half of all purchases.
Digital spends are on a rise since more and more companies are now embracing the digital medium. Here are some eye-opening statistics:
- 65% of marketers ranked social marketing as the highest area of investment in 2015
- More than a third of CMOs say that digital marketing will account for 75% or more of their spending within the next five years
- 28% of marketers have reduced their advertising budget to fund more digital marketing. February 2015
Reaching out to the customer is progressively becoming more and more technology-based. As marketing is now an elementary driver of IT purchasing, and that trend has been growing over the last few years and is expected to mature in the coming years. In the developed economy of USA, the Chief Marketing Officers (CMOs) are expected to spend more on information technology than the Chief Information Officers (CIOs) by 2017. Marketing budgets are now larger than IT budgets and are growing more rapidly.
Over the years, the business landscape has shifted and customer insight is now more critical than ever for gaining a competitive advantage and the source of that is slowly moving towards social media. Today, customer data gathered from various social media platforms helps the CMO in gaining valuable customer insights. Based on these insights, the CMO creates Strategic Positioning, Messaging, runs multiple promotional campaigns, etc. which in turn help in increasing the sales revenue.
It’s about time the technology reseller community relooks at their portfolio of products & services to move towards offerings which enable their customers to build better go-to market strategies & insights, help organizations to reduce the cost of customer acquisition, or retain existing customers, etc. Some examples would be moving towards improved customer relationship management, e-commerce enablers, Marketing Automation, Marketing & Social Media Analytics and many more.
A large number of CMOs now gradually realizing that IT must not be treated like a back-office function anymore; Thus, CMOs and CIOs should start commencing true, strategic partnerships in order to usher business growth.The CIO and CMO need to work in sync to develop an infrastructure that gives access to valuable insights in real time. With the help of insights, personalized, relevant experiences can be created for customers. A solid foundation of strong cross-functional collaboration is the need of the hour. In order to drive business value, marketing and IT are required to get on the same page. Whether the CIO will be reporting to the CMO is indeed an ongoing controversial debate. Do you think that the emerging markets will also have a similar trend? Share your thoughts in the comments below.